Signs of Timeshare Frauds

Some companies may encourage owners to stop paying maintenance or assessment fees, claiming that nonpayment will accelerate the exit process. This advice can lead to severe financial and credit consequences for owners. Industry experts emphasize that responsible timeshare companies would never suggest withholding payments, which could result in penalties and negatively impact your credit.

Fraudulent companies may pose as employees or representatives of reputable developers or ARDA, which actively monitors for misuse of its logo or name. ARDA’s website provides a corporate directory that lists ARDA member organizations. Check if the company contacting you is listed in this directory to help you verify if they are authentic.

Most legitimate companies in the timeshare industry do not cold-call or directly solicit timeshare owners. Proceed with caution if you receive unsolicited calls, emails, or social media messages offering exit services. Legitimate timeshare exit options are usually owner-initiated or provided through trusted industry sources.

One common sign of fraud is a large, upfront payment in exchange for a "100% guarantee" to end your timeshare contract. According to the Better Business Bureau (BBB), many scammers lure owners with this assurance but disappear after collecting fees. In general, be wary of anyone asking for money in advance, especially if they insist on wire transfers or payment methods that are hard to track.

Using credible sources to verify a company's legitimacy can be helpful. ARDA offers resources on consumer protection and lists red flags that owners should be aware of. The BBB and Federal Trade Commission (FTC) also track complaints against fraudulent companies, which can be a valuable tool in assessing risk.

Recognizing these warning signs can help you better protect yourself from fraudulent schemes. Understanding and verifying any offers you receive keeps your finances secure and allows you to enjoy your timeshare ownership with peace of mind.

All reputable timeshare developers monitor for signs of fraudulent or misleading activity from third-party companies that use predatory marketing tactics to target timeshare owners with "exit" offers. If you suspect that you or someone you know has been targeted by fraudulent activity, taking immediate action can help prevent further financial harm and potentially aid in stopping scams that impact other owners.

Here are several recommended steps to take if you suspect fraudulent behavior:

1. Contact Your Developer’s Fraud Hotline
    Many timeshare developers have established fraud hotlines for owners to report suspicious activity. Wyndham’s “Scambusters” hotline, available at 1-855-596-9233 or via email at scambusters@wyn.com, allows owners to report suspected fraud for further investigation. By contacting your developer, you can ensure they know of potential fraud patterns that might affect other owners.
2. File a Complaint with the Better Business Bureau (BBB)
   The BBB has conducted extensive studies into timeshare fraud and misleading exit practices, helping to expose fraudulent companies. You can file a complaint through their website, which also provides resources on recognizing scams in the timeshare exit industry. For more insights, refer to their recent article on timeshare exit traps.
3. Contact Your State’s Consumer Protection Agency
   Many states have consumer protection agencies that investigate reports of deceptive practices. Filing a complaint with your state agency can also support larger investigations and enforcement actions that may help prevent fraud on a broader scale.
4. Report to Your State Attorney General’s Office
   State Attorney General offices investigate and prosecute fraud cases, including timeshare-related scams. Reporting suspected fraud can help your state pursue legal action against fraudulent entities and protect other consumers.
5. Notify Local Law Enforcement
   Local law enforcement agencies may have resources to help investigate fraudulent schemes, especially if you have suffered financial losses. Filing a report can aid in building a case against fraudulent businesses.
6. Consult ARDA’s Consumer Support Center
   The American Resort Development Association (ARDA) offers a Consumer Support Center that lists companies flagged for potential fraud and provides guidance on safe exit options. By consulting ARDA’s resources, you can better understand safe methods for exiting your timeshare while protecting yourself from fraud.
7. Visit ResponsibleExit.com
   ARDA’s Responsible Exit site is a reliable resource for trustworthy information on exiting your timeshare. Developed in partnership with leading timeshare companies, this site offers guidelines on safe exit options, helping you avoid unregulated third-party exit firms that often require substantial upfront fees without guaranteeing results.

When it comes to exiting your timeshare, the most secure and cost-effective approach is to work directly with your timeshare developer. Many developers offer hardship programs, certified exit solutions, or resale options tailored to owners’ needs. By contacting your developer first, you can access legitimate support and avoid the unnecessary risks associated with third-party firms.

By taking these steps and consulting trustworthy resources, you can protect your finances, avoid scams, and enjoy the security of timeshare ownership.

Hiring a timeshare exit attorney can limit your options for a smooth resolution. Once you retain legal counsel, timeshare developers are often legally restricted from communicating directly with you about financial solutions or exit options since all interactions must occur through your attorney. This has led to confusion for some owners who can't get assistance from their developer after the attorney fails to deliver promised services. Timeshare developers are frequently open to working with owners on hardship cases, but this option may become unavailable if an attorney is involved.

While there are legitimate exit attorneys, the Federal Trade Commission (FTC) has highlighted that many timeshare exit scams involve legal firms that charge substantial upfront fees and fail to follow through. According to the Better Business Bureau (BBB), complaints about these scams have increased, with some owners paying thousands of dollars and receiving minimal to no assistance.

It’s essential to fully understand the potential consequences before hiring a timeshare exit attorney. Questions to consider include:

• Communication Restrictions: Once you hire an attorney, direct communication between you and your developer is generally prohibited, potentially closing the door on financial solutions or hardship assistance programs.
• Upfront Fees and Success Rates: Many attorneys charge fees upfront, regardless of the outcome. Always inquire about success rates and request verifiable client references.
• Longer Timelines: Legal exit processes can take months or even years, which might not align with your immediate needs for timeshare relief.

Before seeking third-party assistance, contact your timeshare developer directly. Most reputable developers offer various exit programs to assist owners facing financial hardship, life changes, or underutilized ownership. These solutions, including payment plans, resale options, or certified exit programs, can be pursued without third-party intervention. ARDA also provides resources for owners interested in safe and legitimate exit options.

By contacting your developer first, you can avoid unnecessary fees and ensure your exit process remains transparent and secure. Timeshare ownership offers valuable vacation options for many, and understanding your options for change or exit can help you make informed decisions that best suit your financial needs.