If you’re desperate to get out of a timeshare, you may be exactly the type of person scammers are looking for. That’s not meant to frighten you. It’s something every timeshare owner should understand before handing thousands of dollars to someone promising an easy way out.
The FBI has warned that sophisticated criminals are specifically targeting timeshare owners who want to exit, rent, sell, or recover money from their timeshares. These aren’t always obvious scams involving poorly written emails or suspicious telephone calls from strangers. Some operations can look remarkably legitimate, complete with professional websites, contracts, business names, addresses, bank documents, and people who appear to know surprisingly detailed information about your ownership.
According to the FBI, criminals have even obtained information about owners from sources within the timeshare industry. That means someone knowing the name of your resort, when you purchased, or details about your ownership should never be considered proof that the person contacting you is legitimate.
But there’s another side to this story that I believe needs to be discussed. After spending approximately 15 years working inside the timeshare industry, I’ve seen how owners can reach the point where almost anyone promising relief sounds worth listening to. That’s where the real danger begins.
Why Timeshare Owners Are Such Attractive Targets
Think about the position many timeshare owners eventually find themselves in. You bought a timeshare years ago, your maintenance fees continue increasing, you’re not traveling as much anymore, or perhaps your children have made it clear they don’t want to inherit the responsibility. You may have tried selling it only to discover that the resale value is nowhere near what you originally paid.
Then you call the resort and ask a very simple question: “Can I just give it back?” Maybe the resort gives you an option, but maybe it doesn’t. You might be told to sell it, transfer it, continue using it, or simply keep paying your maintenance fees.
Now imagine receiving a telephone call or email from someone saying, “We can get you out.” That’s exactly what you’ve been waiting to hear, and that’s precisely why this is the moment when you need to slow down.
I’ve Seen the Other Side of the Timeshare Table
Before I started helping owners understand their cancellation options, I worked on the other side of the table. I spent approximately 15 years working in timeshare sales, marketing, contracts, and management in the United States, Canada, Mexico, and the Caribbean. I’ve sat at the sales table, worked with contracts, managed sales operations, and watched how people make the decision to buy a timeshare.
I’ve also seen what happens years later when some of those same owners decide they want out. One of the most important things I’ve learned is that desperation changes how people make decisions. An owner who would normally investigate a company carefully may suddenly hand over thousands of dollars because someone promises to make a $1,500, $2,000, or $3,000 annual maintenance fee disappear forever.
That’s exactly when you should become more cautious, not less.
What the FBI Says Is Happening
The FBI says criminals targeting timeshare owners commonly approach victims while pretending to be timeshare brokers, sales representatives, real estate professionals, financial-service companies, or other seemingly legitimate organizations. The owner may be offered an opportunity to exit, rent, or otherwise make money from the timeshare. I witnessed this many timeshares during my career when other salespeople who state that the company would rent out their timeshare to pay the maintenance fee. I knew this was untrue and would not go along with it.
Then comes the request for money. The FBI warns that victims may be asked to pay supposed fees or taxes in advance, but the scam can become much more sophisticated. In some cases, after victims have already lost money, they’re contacted again by people claiming to represent law firms or other organizations that can recover the money they lost.
There’s just one catch: they need another payment.
The FBI describes additional schemes in which criminals impersonate government officials or international organizations and claim they can recover the victim’s money. In other situations, threats or intimidation may be used to convince victims to make additional payments. In other words, the same timeshare owner can potentially be victimized more than once.
Source: Federal Bureau of Investigation, Timeshare Fraud
One Red Flag I’ve Seen for Years: “We Already Have a Buyer”
This isn’t new. Long before today’s sophisticated scams, timeshare owners were being contacted by companies claiming they already had buyers waiting for their timeshares. The FBI warned consumers about this type of scheme years ago, with owners being promised quick sales and then asked to pay hundreds or thousands of dollars in upfront advertising, closing, or other supposed fees.
Here’s something timeshare owners need to understand: most timeshares do not have the resale value owners think they have. That can be a difficult reality to accept when you originally paid $20,000, $30,000, or considerably more for your ownership.
If you’ve been trying unsuccessfully to sell your timeshare and someone suddenly contacts you offering an attractive amount for it, don’t allow the dollar amount to override your common sense. If someone tells you, “We have a buyer ready to pay $25,000 for your timeshare. We just need $2,500 from you to complete the transaction,” stop and investigate before sending a dollar.
Think about it, since I have been helping owners cancel their timeshares, I have done the research. There are thousands and thousands of timeshares for sale and many for just $1.00. Why would anyone contact you and promise you more money than is already advertised on resale websites, i.e. Sell My Timeshare Now?
Source: Federal Bureau of Investigation, Trying to Sell That Timeshare? Beware of Fraudsters
Another Warning Sign: They Contacted You
One of the first questions I would ask an owner is very simple: Who contacted whom? Did you research the company, investigate its background, and contact them because you were looking for assistance? Or did someone unexpectedly telephone or email you and somehow already know that you owned a timeshare?
The FBI specifically warns owners about unsolicited communications concerning their timeshares. If someone unexpectedly knows your resort, ownership details, or other personal information, don’t assume that proves the company is legitimate. Sophisticated criminals may obtain information about timeshare owners before contacting them, so knowledge about your ownership should never be treated as proof of credibility.
Instead, turn the conversation around. Ask the caller for the company’s complete legal name, address, website, telephone number, and an explanation of exactly what service is being offered. Then independently verify that information rather than relying on whatever the caller tells you.
Don’t Confuse a Professional Appearance With Legitimacy
A beautiful website proves almost nothing. Neither does a professional-looking contract, an impressive company name, a toll-free telephone number, or someone answering the phone professionally. Those things can make a business appear legitimate, but they don’t tell you whether the promises being made are true.
The FBI reports that sophisticated timeshare scammers may use fake company websites, business names, addresses, contracts, offer letters, and bank documents to appear legitimate. That’s why I tell owners to investigate the substance of the offer rather than its appearance.
What exactly is the company promising to do? How will it accomplish that? What are you actually paying for? Is the promise contained in the written agreement? Who is the company you’re contracting with, and can you independently verify what you’re being told?
If you’re preparing to spend thousands of dollars, those aren’t unreasonable questions. They’re questions you should be asking.
Timeshare Cancellation and Timeshare Resale Are Not the Same Thing
This distinction is extremely important because owners sometimes use the words “sell,” “transfer,” “exit,” and “cancel” as though they mean the same thing. They don’t necessarily involve the same process.
If someone tells you they already have a buyer, that’s a resale claim. If a company says it is helping you pursue cancellation, surrender, deed-back, transfer, or another exit strategy, that’s something different. You need to understand exactly which service you’re purchasing and what is supposed to happen to your ownership when the process is completed.
Don’t accept an explanation that amounts to, “Don’t worry. We’ll take care of everything.” Ask the company to explain exactly what it intends to do. If you’re spending thousands of dollars, you have every right to understand the process.
What I Would Do Before Paying Any Timeshare Exit Company
If I were sitting across the table from a timeshare owner considering an exit company, the first thing I would tell that person is not to make a decision based on fear, frustration, or a telephone sales pitch. Start with the facts about your particular ownership because not every timeshare situation is the same.
1. Determine Exactly What You Own
Find out whether you own deeded property, points, a right-to-use membership, or some other type of vacation-club product. You should also know where the ownership is located because an ownership in the United States may be structured differently from one in Mexico or the Caribbean. A company offering assistance should want to understand these details before recommending a solution.
2. Determine Whether You Still Owe Money
There’s a major difference between a timeshare that is paid in full and one carrying a substantial loan balance. Before discussing an exit strategy, a company should know whether you owe money, how much you owe, and whether your maintenance fees are current. If someone promises a solution without even asking basic questions about your ownership, I would want to know why.
3. Ask Exactly What You’re Purchasing
Are you purchasing legal representation, document preparation, negotiation, a resale service, a transfer, or some other type of assistance? These are different services and should not simply be lumped together under the words “timeshare exit.” Before you pay anyone, make sure you understand what they’re actually agreeing to do.
4. Get the Promises in Writing
Don’t rely solely on a telephone conversation. Read the agreement and compare what it says with what the salesperson told you. If someone makes an important promise verbally but refuses to put it in writing, that should concern you.
5. Research the Company Independently
Don’t rely exclusively on testimonials appearing on the company’s own website. Search for the business independently, look at how long it has been operating, investigate complaints, and see whether you can verify the people behind it. No company will have a perfect online reputation, but you should understand who you’re dealing with before sending thousands of dollars.
6. Be Extremely Skeptical of Guaranteed Buyers
If someone claims a buyer is already waiting to purchase your timeshare, investigate thoroughly before paying anything. Ask why this supposed buyer is willing to pay significantly more than similar timeshares appear to be selling for on the resale market. An unusually attractive offer should lead to more questions, not fewer.
7. Never Allow Urgency to Make the Decision for You
Statements such as “You have to do this today” or “This offer disappears tonight” should cause you to slow down rather than speed up. Timeshare owners have already experienced high-pressure sales environments when purchasing their ownerships. There’s no reason to put yourself through another high-pressure sales presentation while trying to get out of one.
Charging a Fee Does Not Automatically Make a Company a Scam
This is an important distinction because sometimes warnings about timeshare scams become overly simplistic. Not everyone who charges money to help an owner cancel or resolve a timeshare problem is automatically a scammer.
Attorneys charge fees. Document-preparation services charge fees. Consultants charge fees. Legitimate businesses charge customers for professional services every day. The fact that a business charges a fee does not, by itself, establish that the company is legitimate or fraudulent.
The better questions are: What are they charging you for? What have they promised? Are those promises truthful? Can they explain their process? Does the written agreement match what the salesperson told you? That’s where owners need to focus.
Why I Believe Education Has to Come Before Cancellation
One of the reasons I created Everything About Timeshares was because I kept seeing owners trying to make major financial decisions without understanding how the industry actually works. Too often, owners go directly from being frustrated with the resort to searching for someone—anyone—who promises to get them out.
Some owners may need professional assistance. Some may have options directly through their resorts. Others may be able to handle portions of the process themselves, while some situations are considerably more complicated. That’s why I don’t believe the first step should automatically be spending thousands of dollars.
The first step should be understanding your particular situation. What do you own? Is it paid off? What does your contract say? What options are actually available? Only after answering those questions can you make an informed decision about what to do next.
Before You Pay Anyone, Ask This One Question
Before hiring someone to help with your timeshare, ask one very simple question:
“Can you explain exactly how you’re going to get me out of this timeshare?”
Then listen carefully to the answer. A legitimate professional should be able to explain what service is being provided without hiding behind vague promises, complicated terminology, or guarantees designed primarily to get your credit card number.
If the answer amounts to, “Trust us. We guarantee we’ll get you out,” but nobody can explain exactly what you’re paying for, I would keep my wallet closed.
The FBI Warning Shouldn’t Scare Owners Away From Seeking Help
The lesson from the FBI’s warnings isn’t that every timeshare exit company, attorney, document-preparation service, or consultant is dishonest. The lesson is that timeshare owners need to become better-informed consumers before handing anyone money.
Timeshare owners can be particularly vulnerable because many are frustrated, financially exhausted, and desperate for a solution. Criminals understand that desperation, and legitimate businesses should understand it too. Owners deserve straightforward explanations rather than another high-pressure sales presentation.
Before you pay a timeshare exit company, attorney, reseller, transfer company, or anyone else promising to solve your problem, understand exactly what you’re buying. Ask questions, verify claims, read the agreement, and never allow desperation to make the decision for you.
Thinking About Cancelling Your Timeshare?
Before paying thousands of dollars to a timeshare exit company, find out what options may be available based on your specific ownership, resort, and financial situation.
I offer a Free Timeshare Exit Review to help owners understand their situation before deciding what to do next.
Request Your Free Timeshare Exit Review →Click here to get started.
About Wayne C. Robinson
Wayne C. Robinson is a former timeshare industry executive, author, and consumer educator with approximately 15 years of experience working in timeshare sales, marketing, contracts, and management in the United States, Canada, Mexico, and the Caribbean.
He is the author of Everything About Timeshares and writes about timeshare ownership, sales practices, cancellation options, maintenance fees, and the timeshare exit industry.