For some, a timeshare redemption company seems like an attractive, low-hassle way to quickly be rid of a timeshare – but can a timeshare redemption company really get you out of your obligation as easily as they promise?
There are all sorts of reasons why you may want to get out of your timeshare contract. Maybe you can no longer afford the annual maintenance fees. Maybe you’re not able to travel to the resort destination. Maybe it was willed to you by a parent or family member.
Whatever the reason, many timeshare owners are eager to be rid of their timeshare obligations by any means necessary.
What Is a Timeshare Redemption Company?
When timeshare owners want out of a contract, many first turn to the resale market. The timeshare resale market is depressed and oversaturated, however, and, as we’ve explained before, most timeshares have virtually no resale value whatsoever (in fact, you’re likely to see some timeshares listed on eBay for as little as $1, without any takers). What’s more, the market is also rife with scammers looking to prey on eager sellers.
Timeshare redemption companies claim to offer an alternative to wading into the resale quagmire. For an upfront fee, these services offer to redeem and release you from your timeshare commitment.
How does it work? If it helps, think of the redemption company as a bit like a third party mediator between you and timeshare wholesalers. It transfers your unwanted timeshare back to the travel clubs, resorts, and inventory aggregates by means of exclusive partnerships and deals.
Can a Redemption Company Really Help Me?
The short answer to this question? Sometimes, sometimes not. The frustrating thing for a consumer is that there’s really no way to be entirely sure that these companies can deliver before you pay them.
Remember what we said above about how redemption companies work? To be successful, these companies rely upon informal inventory recovery agreements with the resorts and travel clubs which, ultimately, are the entities that recover their interests.
Depending upon market conditions they may, or may not be willing to take back an interest at any given moment depending on whether they think the interest will be easily remarketable. So while many redemption services offer a money back guarantee, they are also largely unlicensed companies that come and go – meaning that there’s no sure way to know if they’ll be around if and when your deal bounces back.
What’s the Bottom Line?
Timeshare redemption companies offer an alternative to a fruitless resale or a scam, but you don’t necessarily know what you’re going to get. As with most timeshare-related matters, caution is paramount. Do your research about the company online, as well as with the Attorney General and consumer protection agencies in your state.
Have any more questions about the timeshare industry? Don’t hesitate to get in touch! At Finn Law Group, we specialize in representing consumers who feel trapped or dissatisfied by a timeshare purchase agreement and seek to cancel or somehow “get rid of” their timeshare contract. Drop us a line today with any further inquiries or concerns.