Timeshares are meant to be lifelong products. So, what happens when you decide you don’t want your timeshare anymore? Whether you aren’t using your ownership as much as you’d hoped, your maintenance fees are piling up, or you simply don’t like your timeshare, you do have options. With that said, not all these options are safe. The unfortunate reality is that unscrupulous timeshare cancellation companies and other timeshare exit companies have become all too common in the industry, making big promises they simply can’t deliver on. So, how do timeshare exit companies work? What makes them so dangerous? What are the red flags you should watch out for? And how can you safely exit your timeshare? The experts at Timeshares Only have the answers!
- Can You Cancel a Timeshare Contract?
- How Does Timeshare Cancellation Work?
- What's the Difference Between Timeshare Cancellation Scams and Timeshare Exit Scams?
- How Much Does Timeshare Cancellation Cost?
- Other Timeshare Cancellation Scams
- Safe Alternatives to Timeshare Cancellation Companies
- Skip the Exit Companies and Sell Your Ownership with Timeshares Only
Can You Cancel a Timeshare Contract?
First things first: can you cancel a timeshare agreement? After all, cancellation companies are called that for a reason, right? The answer is: not really, no. Just like when you purchase a home, buying a timeshare is a legally binding process. You can’t just cancel your timeshare ownership. At least, not for the most part. There is one exception to this rule, however: the timeshare rescission period.
Timeshare Rescission Period
In the United States, timeshare buyers can rescind their purchase quickly. The recession period varies from state to state. It can be anywhere from 3 to 10 days, but check with the state of your resort.
Once the rescission period has passed, you, as a timeshare owner, have several empowering options for exiting your timeshare. You can take control by contacting your resort or developer, gifting your ownership, or selling it on the resale market. These options put you in the driver’s seat of your timeshare situation, providing a sense of empowerment and control.
How Does Timeshare Cancellation Work?
You may have seen ads online or on TV from timeshare cancellation companies promising to get you out of your contract. As a timeshare owner, it seems reasonable for a timeshare exit attorney to advocate for you without loopholes or questionable practices. However, many of the promises that these companies make are rarely upheld.
So, how does timeshare cancellation work? The short answer is, it doesn’t. The timeshare exit process looks like this: Timeshare cancellation companies will offer a money-back guarantee, promising to get you out of your ownership. This entails a letter sent to your resort to cease all communication with you, the owner. Timeshare exit attorneys typically advise owners to stop paying their timeshare maintenance fees. This is a big red flag within the timeshare industry and can cause more harm than good. If you stop paying your maintenance fees while still owning a timeshare, the resort developer may foreclose on it, and you’ll end up damaging your credit.
During this period, the company will supposedly work on your behalf to end your ownership, a process that can stretch indefinitely. However, many of these companies demand a substantial up-front fee, often in the thousands of dollars. In the worst-case scenario, the ‘salespeople’ at the timeshare exit team may vanish after taking your money, leaving you with no resolution and a significant financial loss.
What’s the Difference Between Timeshare Cancellation Scams and Timeshare Exit Scams?
The terms “timeshare exit scam” and “timeshare cancellation scam” have similar connotations. There are some important differences, though. In short, a timeshare cancellation company offers to cancel your contract, often for a large upfront fee. As mentioned, however, you can’t just “cancel” a timeshare agreement; it is a legally binding agreement. So, what do they do after you pay the upfront fee? The process can go several ways, but some common tactics include dragging their feet, telling you to stop paying your maintenance fees, and even just doing nothing. Some companies will even go so far as to file fraudulent paperwork and draft phony exit letters to cover their tracks.
On the other hand, “timeshare exit scam” is more of an umbrella term. The timeshare exit industry is growing all the time. Currently, however, it includes cancellation scams, as well as resale scams, donation scams, and relief scams. In other words, a timeshare exit scam is any fake service that claims it can get you out of a timeshare contract, by any means.
How Much Does Timeshare Cancellation Cost?
As previously mentioned, timeshare cancellation companies can charge upwards of thousands of dollars up-front to cancel your contract. The Better Business Bureau has an in-depth study on timeshare cancellation, including victims of cancellation attorneys.
When it comes to getting rid of your timeshare, it’s vital to steer clear of exorbitant up-front fees charged by exit companies. Instead, focus on the safe and legal options that abound in the timeshare industry.
Other Timeshare Cancellation Scams
Out of all of the scams, timeshare cancellation is the industry’s latest scam that preys upon thousands of unsuspecting owners. Be aware of any of these red flags when you are looking for a way out of your timeshare:
“Stop Paying Your Timeshare Maintenance Fees/Dues”
Any companies or representatives that recommend you stop paying your required payments are likely exit scams. Your maintenance fees or dues are legally binding and mandatory while you still own your timeshare. It is much like paying your mortgage, property taxes, or insurance. If you stop paying, you will foreclose on your ownership. This impacts your credit score and stays on your credit report.
Exorbitant Upfront Fees
Think twice about paying thousands upfront to get out of your ownership. Your resort or developer likely has free timeshare relief options for owners. Exit or cancellation companies charge thousands upfront and are notorious for not fulfilling their services and leaving their customers in the dark.
Unsolicited Phone Calls/Cold Calls
A legitimate resale company or representative will only contact you with your permission. Cold calls are illegal! If you are called by one of these timeshare cancellation companies out of the blue, it’s a scam! Refrain from giving your personal information over the phone to a company you’ve never heard of or weren’t expecting a call from.
Fake Timeshare Resale Agents
Today’s timeshare exit scams are more tech-savvy. They manipulate caller ID information to appear as a different number, posing as employees of legitimate resale companies. It has been reported that a “representative” has reached out to some of our customers this way.
Safe Alternatives to Timeshare Cancellation Companies
While exit companies aren’t safe, as we mentioned before, you have plenty of alternatives! From your timeshare developer to ARDA, to the resale market, you can safely say goodbye to your timeshare.
In-House Exit Solutions
If you want to move on from your timeshare, the first thing you should do is contact your resort developer. Many developers offer in-house exit solutions to help you. Selling a Wyndham timeshare, for example? Contact Wyndham Cares. Or maybe you’re looking to sell your Holiday Inn Club timeshare? Horizons by Holiday Inn is their in-house exit solution. Most brands have options just for their owners so that they can exit their timeshare responsibly.
How ARDA Can Help You Sell Your Timeshare
ARDA is a timeshare industry advocacy group for owners, buyers, sellers, and developers. They have free resources and guidance to point you in the right direction. Ultimately, if you see that a company is a member of ARDA, you can rest assured that they follow a strict set of ethics that helps to keep everyone in the industry safe.
After contacting your timeshare company or resort, check ResponsibleExit.com for help. The Coalition for Responsible Exit’s page houses numerous resources, news updates, and guides for owners who want to exit their timeshare.
Selling Your Timeshare on the Resale Market
Another great alternative to using a timeshare cancellation company is selling your timeshare on the resale market. Selling your unwanted timeshare gives you extra control over the process, as you can choose who to sell the ownership to. That said, keeping your expectations in check is essential. Unlike traditional real estate, timeshares are not an investment; they’re a luxury item. Much like other luxury items, such as cars, timeshares depreciate over time. As a result, it’s unlikely that you’ll make a profit by selling your vacation ownership. Instead, selling allows you to recoup some costs and safely break free from your timeshare.
Skip the Exit Companies and Sell Your Ownership with Timeshares Only
When navigating the resale market, working with a group that’s both experienced and trustworthy is essential. That’s where we come in! Timeshares Only is a featured reseller for the Coalition for Responsible Exit. We also have an A+ BBB rating and have been in the industry for over 30 years. Our resale representatives can guide and assist you throughout every stage of the selling process, all the while offering the peace of mind that only a trusted resale company can provide. Click the link below to get started!
Not Quite Ready to Sell Your Timeshare?
On the other hand, if you need more time to move on from your timeshare, consider renting it out instead. Renting out your timeshare can help pay off your maintenance fees or put some money back in your pocket. If you want to rent out your timeshare, click the link below! Do you still have questions? No problem! Feel free to call us at 1-800-610-2734 or email us at [email protected].
