There is a lot of misinformation and confusion about the timeshare resale market and exit process due to increasing fraud by marketing firms soliciting owners and consumers with false advertisements to help end their timeshare contracts. They charge significant upfront fees, give misguided contractual advice and in most cases fail to deliver on those services.
In recent years, fraudulent exit companies have flooded the timeshare scene, with numerous companies promising to help owners exit their property. However, many of these companies lure owners with false advertisements using their fraudulent real estate services. Even worse, marketing by these exit companies has increased during the COVID-19 pandemic preying on the vulnerabilities of people who have had their personal and professional lives disrupted.
The timeshare developer industry has worked for many years to advise owners of the fraud, taken legal recourse against disreputable exit companies and worked with state regulators to strengthen consumer protection policies. These efforts, along with the help of owners filing complaints, the bad practices of these companies have drawn the attention of local and state authorities. One of the leading companies is currently under investigation by the Washington State Attorney General’s office.
All consumers need to be cautious of third-party exit companies with offers that seem too good to be true.