Worst Timeshare Exit Companies and How to Avoid Scams
The worst timeshare exit companies share common traits: they cold-call owners, demand large upfront payments ($5,000-$10,000+), promise unrealistically fast results, have F ratings on BBB, and disappear after collecting payment. The FTC has taken enforcement action against multiple exit companies for deceptive practices, and several states have enacted specific laws targeting timeshare exit fraud.
FTC and State Attorney General Actions
The Federal Trade Commission has filed complaints against timeshare exit companies that collected millions in upfront fees from consumers and either performed no services or used ineffective "form letter" approaches that had no chance of success. State attorneys general in Florida, Missouri, Nevada, and other states with large timeshare industries have also pursued cases.
Before hiring any exit company, search their name on:
- FTC Cases & Proceedings Database
- Your state's attorney general consumer complaint database
- Better Business Bureau (check for "Pattern of Complaints" alerts)
10 Warning Signs of a Timeshare Exit Scam
| # | Warning Sign | Why It Is a Red Flag |
|---|---|---|
| 1 | Unsolicited phone call or postcard | Legitimate companies do not cold-call timeshare owners. Scammers buy owner lists from data brokers. |
| 2 | Full payment required upfront | Professional exit companies structure payments or work on contingency. Full upfront payment removes their incentive to perform. |
| 3 | "Guaranteed results" promise | No company can guarantee a specific legal outcome. Consumer protection law prohibits this claim. |
| 4 | Timeline under 90 days | Legitimate exits take 6-18 months. Promising faster results is either dishonest or means they plan to use an approach that won't work long-term. |
| 5 | No physical office | Virtual offices and P.O. boxes are common among fly-by-night operations. Visit the address on Google Maps. |
| 6 | Company is under 3 years old | Most scam exit companies close within 2-3 years after collecting enough fees. Established companies with 5+ years of history are safer. |
| 7 | BBB rating of F or "Not Rated" | Either the BBB has found significant issues, or the company is too new to have a track record. |
| 8 | "Stop paying your maintenance fees" | This advice leads to foreclosure and credit damage. Any company telling you to stop paying is not protecting your interests. |
| 9 | Claims of government connections | No exit company has special access to the FTC, state AG, or any government agency. This claim is always false. |
| 10 | Pressure to sign today | Identical to the high-pressure timeshare sales tactics that got you into this situation in the first place. |
If you have already paid an exit company that you believe may be fraudulent, file complaints with the FTC (ftc.gov/complaint), your state attorney general, and the BBB. You may also be able to dispute the charge with your credit card company under the Fair Credit Billing Act.
Timeshare Consulting & Services Inc. has maintained an A+ BBB rating for over 15 years with zero FTC actions. We charge zero upfront fees. Request a free consultation or call (888) 530-7268.
Related Questions
- How to Get Out of a Timeshare Without a Lawyer
- How to Get Out of a Timeshare for Free
- BBB Rated Timeshare Exit Companies: What to Look For
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