Timeshare exit scam alerts
The FTC estimates Americans lose hundreds of millions of dollars annually to timeshare exit fraud. The industry is structured around preying on desperate owners. Here is exactly how the scam works.
How timeshare exit scams work
Phase: The hook
You receive an unsolicited call, mailer, or online ad promising to get you out of your timeshare "quickly and permanently." The company may imply it has relationships with developers or legal authority to force an exit. These claims are typically false.
Phase: The pressure sale
A salesperson tells you your timeshare is costing you thousands per year and they can make it stop — but only if you act now. Limited-time offers, "processing fees going up next month," and manufactured urgency are standard tactics.
Phase: The upfront fee
You're asked to pay $3,000–$15,000 upfront. Some companies ask for this in cashier's check or wire transfer specifically because these are harder to dispute than credit cards. They may set up payment plans to make it feel smaller.
Phase: The waiting game
After you pay, communication slows. You're told your case is "in process." Calls go to voicemail. Updates become vague. Nothing actually happens — the company has already made their money.
Phase: The collapse
Many timeshare exit companies go out of business after 2–3 years, taking client money with them. Owners are left with no exit, no refund, often a damaged credit score from missing developer payments while "waiting," and no recourse against a dissolved LLC.
Red flags — run if you see these
State AG enforcement actions
We only list enforcement actions by Attorneys General against categories of companies — we do not name individual companies without verified AG action to avoid defamation risk.
Florida
FL AG has brought actions against dozens of timeshare exit companies including Resort Advisory Group, Timeshare Compliance, and others for deceptive practices, upfront fee collection, and abandonment of clients.
Arizona
AZ AG Consumer Protection has taken action against multiple Scottsdale-area timeshare exit operations for misrepresenting success rates and collecting fees without delivering services.
Nevada
Nevada AG has pursued exit companies operating out of Las Vegas for deceptive advertising targeting timeshare owners at resort presentations.
Texas
TX AG has filed suit against several exit companies for DTPA violations — specifically misrepresenting that they had established relationships with developers or the legal authority to force exits.
Missouri
MO AG consumer protection division has brought enforcement actions against companies soliciting Missouri residents with guaranteed exit promises.
What to do if you’ve already paid a scam company
- 1.Stop making further payments immediately and document your reason in writing
- 2.Request a full accounting of all work supposedly performed on your behalf
- 3.File a complaint with your state Attorney General consumer protection division
- 4.File a complaint with the CFPB at consumerfinance.gov/complaint
- 5.File with the FTC at reportfraud.ftc.gov — your report feeds their enforcement database
- 6.Dispute the charges with your credit card company under the Fair Credit Billing Act — you have up to 60 days from your statement, and sometimes longer for ongoing fraud
- 7.Check if the company is licensed as required in your state — many aren't, making this criminal
- 8.Consult a consumer protection attorney — many offer free consultations and some take cases on contingency
Where to report timeshare exit fraud
File complaints about financial fraud, including timeshare exit company misrepresentation
Reports go directly into the FTC's enforcement database. FTC has shut down 50+ exit scam operations
Report companies and warn other consumers
Most AGs have a consumer protection division that handles timeshare fraud complaints
What a legitimate exit company looks like
- ✓Named attorneys with verifiable bar license numbers
- ✓Charges in escrow or after successful exit — not all upfront
- ✓Provides written contract with clear milestones and refund terms
- ✓Does not tell you to stop paying maintenance fees (this triggers foreclosure and damages credit)
- ✓Has a verifiable physical office address and real phone number
- ✓Does not promise a specific outcome — legitimate attorneys are ethically prohibited from guaranteeing results
- ✓Has Better Business Bureau accreditation or verifiable positive reviews with named clients