Ask RedWeek / January, 2019

Are timeshare exit companies legit?

I keep getting calls from timeshare "exit companies" so I can learn about ways to get out of my timeshare. Are these companies legit? If not, what steps do you recommend I consider when I'm ready to move on from my timeshare travel?

This question is all too timely, since timeshare exit scams continue to tarnish the industry's reputation and victimize thousands of owners. This type of unsolicited call is just one of many schemes that fraudulent outfits use to ensnare owners who are vulnerable to "get out of your timeshare" pitches. For the price of a free lunch at a midtown hotel, these companies also ask owners to pay several thousand dollars for their exit services, many if not all of which are illusory. RedWeek has attended several of these boilerplate operations from companies who insist they "legit." That's a red flag, right off the bat.

In addition to attending presentations from scammers, RedWeek also attends numerous sales presentations from brand-name developers and third-party travel clubs so we can keep track of what is happening to consumers in the marketplace. The scammer presentations are usually a hard-sell timeshare pitch in reverse, designed to get owners out of contracts — instead of into them. In most cases, the scammers do nothing more than pocket the upfront fee, then they disappear, change their name and create a new website to launch the scam all over again.

As a consumer-focused company, RedWeek has also written many stories to help timeshare owners avoid getting scammed by so-called "exit, transfer or cancellation" companies that offer contract cancellation services (supposedly) for owners who are desperate to dump their timeshares. Unfortunately, despite our educational efforts, these scams continue to proliferate, usually preying on older owners who are ending their travel years and eager to get out of their contracts and maintenance fees.

The Orlando Sentinel, the hometown daily newspaper for most of the major timeshare developers, just ran a long story on the industry's legal efforts to shut down exit companies that are pocketing multi-thousand-dollar upfront fees from owners who fall for their cancellation pitches — but get no relief from their timeshare obligations. RedWeek assisted with the story by providing the Sentinel with background information on secondary market issues.

This is just the latest news story, in major national publications, on the traumas that owners endure when they go outside legitimate channels to divest their timeshares Most of the time, owners don't know they've been had until long after they've already paid for exit services that never materialize.

Exit companies, who advertise heavily on Internet and radio platforms, promote the idea that timeshare owners are victims of one-sided contracts that obligate them, for life, to keep paying for their travel contracts. They offer vague legal advice and sometimes work with lawyers who paper developers with demand letters to cancel contracts. Some exit companies even offer "guaranteed" refunds that, in many cases, are impossible to collect.

In addition to participating in a new "responsible exit" program with ARDA, the American Resort Development Association, several US developers are independently filing lawsuits to crack down on exit companies that, the developers allege, are interfering with customer contracts and offering phony exit services. Developers are also encouraging state and federal prosecutors to pursue companies that take advantage of timeshare owners on the secondary market.

You Can Pursue More Legitimate Exit Options

If you need to get out of your timeshare, you do have better options available to you:

  • Owners can post their timeshares for rent or sale (simultaneously) on RedWeek for six months for under $100. That's an ideal way to test the rental and resale market for your ownership.
  • Owners can also list their intervals for sale or rent with real estate brokers who specialize in timeshares. (Most of the legitimate resale brokers list their clients' properties on RedWeek.com.) But brokers won't take all timeshares — they tend to focus on properties sold by the major timeshare brands, and have high commissions.
  • Owners at older legacy resorts, where a local timeshare board manages the resort, should always contact their resort manager to research options for rent or resale.
  • Owners at brand-name timeshare chains — Wyndham, Hilton, Disney, Marriott, Diamond, etc. — should call their owner services department to investigate exit options. Most of the majors will readily take back a deeded week at high-destination, high-value resorts. Some, such as Marriott, will buy back your timeshare for 10-15 percent of the original value. But none of these outcomes are guaranteed. They are always dependent on what you own, where you own, and whether you've paid off the mortgage on your timeshare.

RedWeek gets many calls and emails from owners seeking help in selling their timeshare. We help when and where we can. We also keep improving our site to make rental and resale transactions safe and secure for all parties. But the onus is always on owners — or their relatives — to do their homework so they make smart decisions about their travel and timeshare issues.

About the author

This answer was provided by RedWeek contributor, Jeff Weir. Jeff is a California-based journalist who has covered California, Congress, and the White House. He also has roots in Silicon Valley, where he directed public relations and marketing programs for high-tech companies. He is also a timeshare owner and member of RedWeek.com.

Comments (45)

    Avatar for Eva G.
    Eva G.
    Jan 08, 2019

    If I do nothing and die, does this obligate my heirs.

    Avatar for Clare C.
    Clare C.
    Jan 08, 2019

    Has anyone ever tried to sell or get out of a timeshare with Pueblo Bonito in Las Cabos Mexico?

    Avatar for Thomas C.
    Thomas C.
    Jan 08, 2019

    Thanks. Nice to see a company that has no ax to grind telling it like it is. As an older couple, we have enjoyed our Marriott time share for many years. However, there comes a time when we just can't travel as much as we would like. Your insights regarding this subject are very much appreciated.

    Avatar for Doug L.
    Doug L.
    Jan 08, 2019

    Thanks for an objective view of the timeshare exit conundrum. An article on (tax deductible) donation of the ownership of one's timeshare to a non profit organization for resale or fund raising purposes might be useful.

    Avatar for Cynthia B.
    Cynthia B.
    Jan 09, 2019

    I hold my mother's power of attorney am finding it very difficult to sell her 4 properties! As she is in the advanced stages of Azheimer's, she can no longer travel. I have resorted to renting the weeks whenever possible, but the maintenance fees are still a major drain on the money that she has to pay for her care. It is frightening!

    Avatar for Jeffrey W.
    Jeffrey W.
    Jan 09, 2019

    Responding to eva51: To the best of our knowledge, according to lawyers who handle exit issues, heirs are in no way obligated to assume responsibility for their parents' timeshare contracts. That's always an individual choice. Best to check with your timeshare company, or resort HOA, on this issue. Also check with your accountant or personal attorney.

    Avatar for Lance C.
    Lance C.
    Jan 09, 2019

    Responding to clarec11: Many have tried to get out of Pueblo Bonito. It is likely a Right-to-use or membership rather than deeded property. It can usually be done by simply stopping payments since you do not own anything. The resort might start hounding you with collection calls and letters but those can usually be ignored.

    The other option is to list your unit for sale or giveaway here on RedWeek or other legitimate timeshare resale web sites. Just be realistic in what your asking price is. Most units in Mexico have a zero resale value.

    Avatar for Robert H.
    Robert H.
    Jan 11, 2019

    I want to place for every time I place for 14,99 wheb I go to finish it show much more money how do I solve that

    Avatar for RedWeek Support
    RedWeek Support RedWeek.com
    Jan 11, 2019 (edited)

    Robert H.: Please click on the "Contact Us" link at the bottom of any page if you have questions about your account or making a payment.

    Avatar for Joan M.
    Joan M.
    Jan 22, 2019 (edited)

    I am not sure what to do next regarding my Manhattan Club membership. I have been an owner over 20 yrs. When my husband died in 2012 I simply could not reserve a room and I gave up, plus have not paid my fees. I got threatening letters from them which I ignored. I own a studio every other year. I am now 3 fees in the rears. I have health issues and would like to get out without costing me anything, help. JoanM

    Avatar for Sophia V.
    Sophia V.
    Jan 22, 2019

    My options are completely open in regards to where to vacation. I would like to see what is available for particular dates. Is there any way to search by date?

    Avatar for RedWeek Support
    RedWeek Support RedWeek.com
    Jan 22, 2019

    Sophia V.: On the search page (https://www.redweek.com) enter a location. It can be as broad as North America. Once the results come up, use the tabs at the top of the list to filter your results by date, unit size, price, etc. If you have further questions, please use the "Contact Us' link at the bottom of any page.

    Avatar for Terry C.
    Terry C.
    Jan 22, 2019

    I have 3 timeshares I want to sell in 2020. Let me know how to post them for sale on Redweek?

    Avatar for RedWeek Support
    RedWeek Support RedWeek.com
    Jan 22, 2019

    Terry C.: You can go to this page to get started: Sell My Timeshare (https://www.redweek.com/sell-my-timeshare)

    Avatar for Janet S.
    Janet S.
    Jan 27, 2019

    I have an appointment with Resort Relief today has anyone uned them before. Their ad says they are top rated BBB.

    Avatar for Ben C.
    Ben C.
    Jan 29, 2019

    I want to rent an ocean front at Wyndham royal vista in pompano,, Florida, for the week of feb 29, 2020 to march 7, 2020. I am having a problem navigating the website for dates beyond 2019. Please advise.

    Avatar for RedWeek Support
    RedWeek Support RedWeek.com
    Jan 29, 2019

    Ben C.: There are currently no rentals for 2020 posted at this resort. You can sign up to be alerted as new postings are added by going to the "Posting Alerts" link at the bottom of the rental list. If you have further questions or need assistance, please use the "Contact Us" link at the very bottom of any page.

    Avatar for Sonnia R.
    Sonnia R.
    Feb 15, 2019 (edited)

    So glad I found and read this site. Thank you for saving me from paying $$$ to Exit Legally to get a refund for the cost and maintenance fees of my Wyndham timeshare. I almost fell for this scam.

    Avatar for Dick H.
    Dick H.
    Feb 15, 2019

    I recently spoke with a company purporting to help folks escape their onerous timeshare obligations and was quoted an upfront fee of $8,750, which I cannot afford. The only guarantee they would make was to secure a “give back” and “attempt” at recovering some of the monies originally paid for the timeshare (in our case $34,000). If unsuccessful after 36 months at securing the termination by “give back,” our $8,750 would be refunded (if they are still in business!). I am wondering if this is typical practice by all these so called timeshare exit companies?

    Avatar for Cali C.
    Cali C.
    Apr 19, 2019

    Lol .this article is so funny!!my 74 year old mother was scammed over and over trying to sell her timeshare.Resorts do not buy back timeshares except maybe Marriot.Timeshares are worthless pieces of air that drain hard working people of money but I do disagree with this article after losing thousands of dollars trying to sell the timeshare we did find a exit company we paid a little over 3,000 and after all the scams we were finally done with this nightmare!!!and by the way remember redweek works with the resorts not the person who forks over thousands in useless fees and taxes!!!!

    Avatar for RedWeek Support
    RedWeek Support RedWeek.com
    Apr 20, 2019

    Cali C.: Just to clarify, RedWeek is not affiliated and does not work for any timeshare resorts. We are a marketplace to buy, sell or rent a timeshare. Many people use our website to rent a timeshare from an owner so they can experience all the amenities of a timeshare resort without the commitment of timeshare ownership.

    Avatar for Jeff F.
    Jeff F.
    May 23, 2019 (edited)

    Couple things to add is that Redweek does have skin the game in that they do try and rent or sell timeshare. However, you can go to e-bay look at Timeshares for sale and filter less than a 2 bucks and see plenty. Sorry to say the value of timeshare are no longer what they were in the past simply because of the internet. Just like Redweek and many others trying to sell or rent. What I have found are that most timeshare owners whom have looked to rent to sell have ended up spending hundreds and if not thousands trying without success plus time and frustration. This is more the case than not. Now as Jeff indicated if you have a very desirable location and week. Then you might and say might have a chance. Also, its very rare to see or know of anyone that does not have a perpetuity agreement in there Deed. This does go on forever and since you have a deed if something happens to the owners then it gets attached to the estate and someone has to take it. Usually the person handling the estate. Either way just understand your options as I received a timeshare that 5 years ago from my grandparents death and I had to take it in the estate. There was no other option in court due to the perpetuity. Then I listed it for sale and not even a chance of it selling. Then hired a Timeshare Cancellation company and yes, it cost me about 3K, but in 6 months poof gone! For the time, headache and money I had already spent in Maint. Fee's this was well worth it and a set amount! Worked great! Just think you have to have to look them up and make sure good BBB ratings on them.

    Avatar for Debbie D.
    Debbie D.
    Jun 03, 2019

    We were scammed into buying Vidanta Mayan Palace in MX over a year ago when they lied to us about literally everything. Now it seems MTS Mexican Timeshare Solutions may be scamming us to pay them 1700 for getting rid of it when I’ve already stopped paying and told Vidante we are letting go of our membership entirely. Do we really need MTS and are they just another scammer?

    Avatar for Christine K.
    Christine K.
    Jun 11, 2019

    Can you tell me anything about RTX Voyager. I think they are more like a pyramid scheme where you give family and friends invites and then you receive points for their vacations.

    The company is poorly operated and someone advised contacting the Attorney General. Not sure which one to contact, the state where it was purchased, the state I live in or the federal level?

    Avatar for Ellen K.
    Ellen K.
    Jun 16, 2019

    Will Summer Bay in Clermont work with me to take it back ?

    Avatar for Desiree F.
    Desiree F.
    Jul 01, 2019 (edited)

    SONNIAR2 if you are still out there. I'm stuck in Wyndham too and I almost feel for an exit company also. What did you end up doing? How did you get out?

    Avatar for George G.
    George G.
    Aug 20, 2019

    I see a lot of comments that need answers. We would all benefit from these Answers. Is someone contacting these commentors? Just Asking how this works!

    Avatar for Bina C.
    Bina C.
    Sep 25, 2019 (edited)

    has anyone used Timeshare.lawyer to exit their time share if you have I would be interested to hear about your experience and if they are reputable. Or if anyone can recommend a time share exit company as I am looking to get rid of my Time share.

    Avatar for Minette R.
    Minette R.
    Nov 20, 2019 (edited)

    we have a time share with RCI we got in Cancun, would this be the same as a deed or membership, since I don't actually own property, would like to get out of this, could we just stop paying. or do we need to seek a time share exit company

    Avatar for Mary R.
    Mary R.
    Nov 30, 2019

    We have less than two years to pay on my timeshare. We were pressured to buy this and have had awful experiences when we stayed at RCI properties. This is not at all as was described in the presentation. I have been researching exit companies and am unhappy at the thought of paying more to them than what I owe. However, I am medically disabled and our income has taken such a hit I feel there is only option is not to pay the rest of what we owe. What steps can I take to exit this program?

    Avatar for Pasi S.
    Pasi S.
    Apr 18, 2020

    If the resort or timeshare club you own with is a member of the industry's European trade body, Resort Development Organisation (RDO) it should comply with the RDO's own Code of Conduct giving its owners more ways to hand back or dispose of their timeshare, free of charge or further financial exposure. RDO has been aware of the concerns of timeshare owners wanting, for good reasons, to simply hand back their timeshare interest at no charge, and no profit. However, maintenance fees should be paid up to date. RDO's requirements of its member resorts stipulate that a timeshare may be handed back, at no charge to the owner.

    Avatar for KC
    KC
    Apr 18, 2020 (edited)

    No offense intended to Pasi S, but I would be willing to bet that very few (if any at all) timeshares owned by people reading these RedWeek forums are Europe-based or in any way even remotely associated with the European "RDO" trade body to which you make reference above.

    Interesting input, but RDO practices in Europe are of no relevance or help at all to people with timeshares based in the USA or Mexico.

    Avatar for Billy A.
    Billy A.
    Jul 11, 2020 (edited)

    Do you guys understand the trap? As the industry goes after timeshare exit scammers, who is going after timeshare lifetime traps? answer is no one. Why would our country allow the worst lifelong trap ever created to continue unchallenged? I for one would like to get to the root of the problem which is the original sin of locking us in to the original scam.

    Is their anything else you can think of that has no value and 99% of the buyers can't get rid of and has a constant drain on your money outside of taxes?

    Avatar for Paul S.
    Paul S.
    Jul 30, 2020

    Has anyone had success with a timeshare resale / exit company? I am nervous to talk to anyone but cant keep my timeshare any longer. It's been paid off over 15 years. I think I have lost enough but will have to pay some more to get out of it now.

    Avatar for Lance C.
    Lance C.
    Jul 30, 2020

    These "exit" companies, if they're not outright scams (which many are), will at best charge you thousands of dollars to do something you can do yourself.

    Try asking the resort if it will take your unit back. Some timeshare companies such as Diamond, Wyndham, and Westgate have programs in place where they will take units back from owners.

    You can also advertise here on RedWeek (but not in these forums) that you want to give your unit away.

    Avatar for Billy A.
    Billy A.
    Aug 04, 2020

    I usually get in trouble trying to see the man behind the curtain in the wizard of OZ.

    While everyone keeps you focused on the exit scam companies, no one, absolutely no one in power focuses on the original scam, the timeshare companies. If we had a legitimate exit plan, exit scams would go away naturally. Instead, Timeshare companies attack all exit companies to eliminate all hope of escape for most of us. Yes they make sure everyone keeps the focus elsewhere.

    You ever wonder why even politicians don't address this problem? Answer, they are also bought and paid for.

    Why would Death be 2nd to Timeshares. You only die once and it's done. If you die, your estate will be responsible for timeshare fees. And it goes on and on until someone doesn't leave any finances behind. Why would something like this exist without a serious challenge from somebody? Anybody? A politician or Lawyer or judge or president?

    Avatar for Brayden M.
    Brayden M.
    Aug 07, 2020

    Newton Group Transfers is a legitimate exit company guys. Yes most companies are scams. But you gotta do your research

    Avatar for Lance C.
    Lance C.
    Aug 07, 2020

    NGT might be legitimate but at best, it will charge you thousands of dollars to do what you can do yourself for a lot less money.

    There are far cheaper ways to get out of timeshare ownership if you just put forth a little time and effort.

    Avatar for Brian L.
    Brian L.
    Aug 29, 2020

    I paid 4200 to exit and now all correspondence has terminated but not my timeshare. All there emails are gone now as well is there anyone that can help get that money back?

    Avatar for Roz R.
    Roz R.
    Nov 28, 2020

    Are Canadians subject to the same problems as Americans? If we walk away , will our credit rating be affected? We do not own a unit, just the right to use a property.

    Avatar for Nimuel C.
    Nimuel C.
    Jan 06, 2021

    Kindly do not work with https://timesharetravis.com/ - Timeshare Travis. I have a personal experience of they scamming people. Initially they do some efforts and later on they leave you hanging in between and say we can't do anything about it.

    Avatar for Sherry R.
    Sherry R.
    Jan 07, 2021

    Any suggestions on getting out of Exploria Resorts Villas at Treetops in the Pocono Mountains? It is a 50 year deeded property with 25 years remaining. Fully paid, only annual maintenance dues. Has anyone heard of the parent company taking back the unit?

    Avatar for Mary J.
    Mary J.
    Feb 08, 2021

    Mr. Weir, , please help me get out of my timeshare with Vacation Village in the Berkshires. I have owned for about 35 years, owe absolutely nothing and always paid MAintenance on time. I own every other year and haven’t used it in way over six years. I keep checking out different companies who would like to get me to sign but I am knowledgeable about their games and will not pay upfront for anything they have to say, which is my clue to not deal with them. . I was told Vacation Village in the Berkshires would take this back anytime and that was a big lie. I am so sick of paying maintenance fees for something I don’t even use. Is there some company that you could direct me to who is on the up and up?

    Avatar for Nimuel C.
    Nimuel C.
    Mar 09, 2021 (edited)

    This is the client named Travis. That person is scamming everyone by providing fake promises and services. Initially he hires workers for couple of months and then all of sudden he starts delaying the payment by saying that I am waiting on my clients. In reality he doesn't have any valid thing and even he doesn't have any big team. He himself manages everything and yet tells my team will do it.In terms of the leads, he has a bot which generates fake leads and he delivers fake leads to his clients. Once the client receives the leads and pay, he don't offer further services and if client threatens him, he puts all blame on his employee. Worst employee to work with. Beware of such scams in Timeshare Industry.

    Avatar for Irene P.
    Irene P.
    Mar 20, 2021

    There is no reason to pay anyone any money to be released from a timeshare. Several of the exit companies know of our volunteers that are on this member-sponsored Facebook page. Most Developers are working with members and owners. If they don't a default can be disputed. One of my least favorite companies is the Newton Group as they use a scare tactic taken out of context mass-mailed to homes. If you would like to learn more about self-advocacy join this Facebook. This is an article written by one of our volunteers. February 13, 2020 Complaint Instructions https://tarda.org/f/how-to-write-and-file-a-timeshare-complaint https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/