The vacation ownership industry can be a minefield for consumers. It’s filled with predatory timeshare developers pressuring individuals into purchasing units they can’t afford and then locking them into indefinitely paying annual maintenance fees and hidden costs. Timeshare exit services, then, are necessary and valuable. But not all timeshare exit companies have your best interests at heart, either. Savvy owners need to be aware of how to avoid timeshare exit scams.
The exact scams themselves are constantly evolving. Sometimes, people with no experience in the timeshare industry try to style themselves as “experts,” take the money of timeshare owners, and then get them into even worse trouble. Other times, a so-called “timeshare resale company” might advise you that they have a buyer for your timeshare and request a hefty upfront fee, only to disappear.
The best defense against fraudsters is knowledge. As the top timeshare exit company in the field, Centerstone Group proudly provides timeshare owners with the free resources they need to examine and spot scammers. In this article, we’ll look at some of the more common schemes you will likely see and what to do when you find them.
Unfortunately, timeshare exit scams are usually not easy to spot. They might have worked up a slick advertising or viral marketing campaign, but those materials often tell you little about the companies. However, research can frequently turn up some helpful information about avoiding timeshare exit scams.
Many scammers use sales tactics ripped directly from timeshare companies themselves. They might mail you fancy advertisements promising they can get your money back if you just come to their “information sessions.” These sessions are likely pitches from a pushy salesperson, just like the one that ended with you buying a timeshare in the first place.
Regardless of how they say it, a huge red flag from anyone is the promise that they can get all your money back even after the state law rescission period for your contract has run. This is particularly so for companies who promise to sell your timeshare on the “timeshare resale market” or have a buyer ready for your unit. Promises like these almost always spell trouble.
Because these exit scammers get more sophisticated all the time, you won’t necessarily see red flags like the one we discussed above. That’s why it’s essential to do your research.
The first place to go when looking at a timeshare exit company is the Better Business Bureau (BBB). The BBB contains reviews and complaints from actual clients of timeshare exit companies who can tell you clearly whether they were scammed and, if so, how it happened. You can also read responses from the business, which can help sort out legitimate complaints from less reasonable ones.
Trusted law enforcement agencies, like the FTC or your state’s attorney general, can also guide you to public records or give you helpful information about how to avoid timeshare exit scams.
Looking through court records for pending lawsuits is also a great way to spot ethical, business, and legal issues before they become your problems. For federal courts, you can generally search for lawsuits nationwide using the PACER system (which will require registration). State courts will vary between states and cities, but most of them have an online search function — see, for example, the case search website for the district courts in Las Vegas, Nevada. There are also other private services that you can to search for various court filings all over the country, like Docketbird.
Keep in mind that, to make much use of these services, you will need to find the exact legal name of the company you are researching. That information can almost always be found on the website of their state’s Secretary of State. For example, searching for Timeshare Compliance in its home state of Wyoming tells you that the company is actually named Pandora Marketing, LLC, and it has been dissolved.
Any legitimate timeshare exit company should also give you plenty of information without a high-pressure sales pitch or request for an upfront fee to even speak with them. Legitimate businesses will always be open about their practices, and an honest talk with a good company can give you lots of helpful information, even if you don’t end up hiring that company.
When researching a timeshare exit company, you should always consider the source of your information. While the American Resort Development Association (ARDA) will have much to say about timeshare exit companies, remember that it is a trade association for timeshare resort developers who don’t want you to exit. Therefore, ARDA may tell you everything is a scam, which isn’t helpful.
You might also want to steer clear of celebrity endorsements or influencers. Many people trust Dave Ramsey for his take on personal finance and believed him when he said Timeshare Exit Team was a good timeshare exit company.
Unfortunately for Ramsey’s listeners, the Timeshare Exit Team was not a qualified company, and its bad business practices were the subject of a lawsuit by the Washington state attorney general. Later, Ramsey was sued by listeners who trusted his recommendation.
Contact the authorities immediately if you’ve been the victim of a timeshare exit scam. Reporting fraud right away can help protect your rights and help save others from falling into the same trap.
Never underestimate the power of your local law enforcement. They can give you valuable information and help, and their physical presence in your community means you can get a faster response. Local law enforcement may also be able to help you find public records that can verify the identity of scammers, which can be helpful if you need to file a lawsuit to get your money back.
The FTC is a trusted consumer protection agency of the United States federal government. There, you can file a complaint against a company that has scammed you and get further information about how to proceed and hold scammers accountable.
Every state has an attorney general who is that state’s top law enforcement official. Attorney generals often have websites set up to provide information about timeshare scams. (For example, Florida’s attorney general has an entire page dedicated to protecting yourself from timeshare sales and resale scams.) You can also file complaints and ask your attorney general to take action on your behalf.
Timeshare ownership often leads to headaches and ongoing financial strain from mounting fees and obligations, and it can seem impossible to escape. Attempting to exit your timeshare on your own can be risky and lead to scams, costly mistakes, or even legal troubles. At Centerstone Group, we provide a safe, legal, and responsible solution to help you avoid those pitfalls.
Centerstone Group is a leading provider of free information about timeshare exit services and an accomplished, respected timeshare exit company. As you can see from its BBB page, Centerstone Group is rated as an A+ company with 4.78 out of 5 stars. We can show you how to avoid timeshare exit scams and help you get a legal and responsible exit from your unwanted timeshare.
Whether you’re looking for guidance, a timeshare contract rescission, or our proprietary pressure campaign, we can help you with your exit. If you need the help of a timeshare attorney or law firm, we can also help connect you with those resources. Don’t let the pain of owning an unwanted timeshare grow. Please contact us for a free consultation and case evaluation to see what we can do for you.
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