How to Spot Timeshare Exit Scams: 5 Red Flags to Watch For


The desperation to leave a timeshare can be overwhelming. When you are staring at another year of rising maintenance fees and special assessments for a property you no longer use, any offer of help can feel like a lifeline. Unfortunately, scammers are acutely aware of this vulnerability. The "timeshare exit" industry is currently filled with predatory companies that promise freedom but deliver nothing more than further financial loss.

Protecting yourself requires a shift in mindset: you must be as skeptical of the exit process as you should have been during the initial sales presentation. To help you navigate these murky waters, here are the five most critical red flags of a timeshare exit scam.

1. Demands for Large Upfront Fees

This is the single most common sign of a scam. A fraudulent company will often ask for a significant payment—ranging from $3,000 to $10,000 or more—before any work has actually been performed. They may justify this as "legal retainer fees," "administrative costs," or "marketing expenses."

The Reality: In almost any other legitimate service industry, you pay for results or according to a clear milestone schedule. Legitimate law firms or reputable exit advocates often offer escrow payment options, where your money is held by an independent third party and only released to the company once your contract is successfully terminated. If a company insists on thousands of dollars upfront via wire transfer or credit card, walk away.

2. Unsolicited "Cold Calls" or Outreach

If you receive a phone call, email, or even a piece of mail from a company claiming they know you own a timeshare and have a "guaranteed" way out, be extremely cautious. These scammers often purchase "lead lists" containing your personal information and ownership details.

The Reality: Reputable attorneys and legitimate businesses do not cold-call owners to solicit business. Often, these callers will claim they have a "buyer waiting" or that they are affiliated with your resort. Always verify these claims by contacting your resort developer directly through their official owner services number—not the number provided by the caller.

3. Guarantees of a Fast or 100% Successful Exit

Scammers love to use absolute language. They might promise to have you out of your contract in "30 to 60 days" or offer a "100% money-back guarantee." While these claims sound reassuring, they are often hollow.

The Reality: Timeshare contracts are legally binding real estate agreements. Terminating them is a complex legal or negotiatory process that depends entirely on the specific resort's policies and the terms of your contract. No third party can truly guarantee a specific timeline or outcome because the resort holds the ultimate power to release you. A legitimate professional will offer a realistic assessment of your situation rather than a blanket guarantee.

4. Instructions to Stop Paying Your Maintenance Fees

One of the most dangerous pieces of advice a scammer can give is telling you to stop paying your maintenance fees or mortgage immediately. They may claim that this "forces the resort to negotiate" or that they will handle the legal fallout.

The Reality: If you stop paying your fees without a formal, legally recognized exit strategy, you are in breach of contract. This can lead to:

  • Severe Credit Damage: The resort will report your delinquency to credit bureaus.

  • Collections: You will be hounded by debt collectors.

  • Foreclosure: The resort may eventually seize the property, which further ruins your credit history.

    A trustworthy advisor will explain the risks of non-payment and help you make an informed decision based on your financial goals.

5. High-Pressure Sales Tactics and "Limited Time" Offers

Do you remember the high-pressure environment of the original timeshare presentation? Scam exit companies use the exact same playbook. They might tell you that "the window to cancel is closing" or that their "special program" is only available if you sign today.

The Reality: These tactics are designed to bypass your critical thinking. They want to create a sense of urgency so you don't take the time to research their company, check their Better Business Bureau (BBB) rating, or consult with a family member or attorney. A legitimate service provider will give you all the time you need to review a contract and perform your due diligence.

How to Protect Your Finances Moving Forward

If you are looking for a way out, the safest first step is always to contact your resort directly. Many major developers now have official surrender programs that are much cheaper—and safer—than hiring an outside firm.

If you do decide to work with a third party, always:

  • Verify their physical address and business registration.

  • Check independent reviews on third-party sites like the BBB or Google (don't trust testimonials on the company's own website).

  • Insist on a written contract that clearly defines the scope of work and the refund policy.

By staying vigilant and recognizing these red flags, you can ensure that your journey toward vacation freedom doesn't result in another financial headache.



Breaking Free: Your Practical Guide on How to Get Out of a Timeshare Permanently