The timeshare industry generates billions of dollars annually, and with that size comes risk—especially for owners trying to exit their contracts.
Over the past decade, a number of unverified or disreputable timeshare exit companies have taken advantage of this market, using high-pressure tactics, misleading guarantees, and questionable practices to collect large fees without delivering results.
In this blog, we’ll break down how these tactics typically work, what government agencies have reported, and what consumers can do to protect themselves from falling into a costly situation.
The Scope of the Problem
According to the Federal Trade Commission (FTC), consumers have lost hundreds of millions of dollars over the past decade to misleading exit offers.
In a widely reported case from 2019, the FTC and the State of Missouri shut down a group that collected over $90 million from consumers by promising to help them exit their timeshares and then failing to deliver.
The Better Business Bureau (BBB) has also issued multiple warnings over the years about companies targeting timeshare owners—particularly older adults—with promises of fast exits and money-back guarantees. Many of these companies request large upfront fees and fail to follow through.
Common Tactics Reported in Consumer Complaints
Here are a few of the most frequently cited issues from public watchdogs:
- Large Upfront Fees with No Follow-Through: Some companies request thousands of dollars upfront to cover “legal” or “processing” costs, but then delay or discontinue communication.
- Unverified Legal Representation: Some operators claim to work with attorneys but cannot provide names, BAR numbers, or credentials that can be independently verified.
- Pressure-Based Sales Tactics: Consumers report being pushed to make fast decisions without being given time to review contracts or ask questions.
- False Claims of Official Partnerships: In some cases, companies claim affiliation with resorts, the FTC, or government programs to build credibility without proof.
Who Is Most at Risk?
While anyone with a timeshare may be approached by these companies, older adults are often targeted more aggressively. Many are seeking to reduce long-term financial burdens or prevent future obligations from falling to family members. Contact is commonly made through phone calls, emails, or urgent-sounding mailers.
How to Protect Yourself
If you’re considering working with a timeshare exit company, consider these steps:
- Check Verified Reviews: Look for honest, independent reviews from real consumers.
- Ask the Right Questions: Don’t hesitate to ask about contracts, timelines, attorney involvement, and refund policies.
- Avoid Pressure: A reputable company will never rush your decision.
- Be Cautious with Upfront Fees: Evaluate what you’re being asked to pay—and what guarantees actually exist.
- Research the Company’s History: Use the BBB and other watchdog sources to check for prior names, patterns of complaints, or legal actions.
Conclusion
While misleading timeshare exit offers have led to hundreds of millions in reported consumer losses, informed decision-making can reduce your risk significantly. With the right tools and questions, it is possible to identify a reliable and transparent provider.
SureGuard Exit Solutions exists to help you make those informed decisions. As a neutral review platform, we help consumers distinguish between trustworthy companies and those that raise concerns—before signing anything.
Stay informed. Stay protected.
Sources
Federal Trade Commission (FTC): https://www.ftc.gov/
Better Business Bureau (BBB): https://www.bbb.org/
FTC Consumer Advice on Timeshare Exit Practices: https://consumer.ftc.gov/articles/timeshares-vacation-clubs-and-related-scamsConsumer Advice
AARP Article on Timeshare Exit https://www.aarp.org/money/scams-fraud/timeshare-exit/AARP
FTC Press Release on Timeshare Exit practices: https://www.ftc.gov/news-events/news/press-releases/2022/11/ftc-wisconsin-attorney-general-take-action-against-timeshare-exit-scammers-cheating-consumers-out-90
