Escrow is an account setup with a 3rd into which a client deposits payment for timeshare exit services that is then released based on satisfying certain criteria. Sometimes clients are confused and think escrow is a “pay when you’re out” process. These accounts do require a client to pay the service fee upfront to the escrow account and is not an agreement to pay the fee when the services are complete.
Often these escrow accounts have multiple triggers that release funds based on certain milestones and other times the funds are only released when one milestone is hit. When used in a timeshare exit situations these milestones could be actions that take place in the process of relieving a client of their timeshare such as execution of developer letters, posting of reviews or regulatory complaints or attorney actions relating to the release. When one milestone is applied to an escrow account that milestone is your release from the timeshare or the type of resolution you are seeking.
When these requirements are achieved, then the 3rd party releases the funds per the details of the escrow agreement as agreed to by all parties. If the conditions are not met within the agreed upon time, then the funds are released back to the client. This is a safeguard that is typically utilized when clients are very skeptical or have had a negative experience with another timeshare exit or a resale company.
Escrow vs 100% Money Back Guarantee
Most timeshare exit companies offer a “100% Moneyback Guarantee”, many even provide a fancy certificate to that effect. Unfortunately, these moneyback guarantees are seldom honored or contain conditions that make them impossible to collect. These guarantees are only worth the paper they are printed on. If you speak with any timeshare exit company offering a “100% Moneyback Guarantee”, run the other direction and seek out a company offering escrow services. Escrow is the only true moneyback guarantee in timeshare exit.
An escrow service protects both the timeshare owner and the timeshare exit company. The timeshare owner is protected by knowing their money is only released to the timeshare exit company after they have fulfilled their end of the agreement. The timeshare exit company is protected by knowing the timeshare owner has already paid for the timeshare cancellation service, so they are assured of getting paid once they execute per the agreement with the client. Beware companies that claim to offer escrow but when you ask, their staff denies it is available or puts on a high-pressure sales pitch to talk you out of that option. Many timeshare exit companies claim to offer escrow but when pressed regarding how many client they sign on to an escrow agreement will tell you none or such a low number that it is clearly not really a service they really offer.