How To Protect Yourself From Timeshare Cancellation Scams

Timeshares can be a truly great option for some people. If you locate one that matches with your vacation customs and doesn’t break the bank, then you may value the accessibility of having a definite vacation spot that you don’t have to stress about maintaining when you are not using it.

But there are also numerous reasons why someone who purchased a timeshare may not want to have it anymore. The timeshare may not be practical in light of uncertainties in your family, habits, or available time. Or the maintenance charges might become challenging. But if you want to exit your timeshare, there are fraudsters out there ready to exploit your situation. They guarantee that they will get you out of your agreement, but all they do is rob your money with a timeshare cancellation flimflam.

How Timeshares Work

A timeshare is an agreement where you buy the rights to use a certain resort or vacation home, or many, at some point throughout the year. It’s comparable to a vacation rental but with more certainty. Unlike purchasing your own vacation home, you don’t have to lay out the total cost because you split it with other people. But that means how much time you can spend there is limited. How that time is scheduled varies. Some give you a designated time, such as the third week of July. Some give you a specific allotment of time, but change when you can utilize it – for instance, you may get two weeks to spend there, but which two weeks you get differs every year. And some are points based where you get a certain number of “points” you can “spend” there.

You don’t have the same entitlements in a timeshare as you would if you owned a vacation home (such as, you can’t just show up whenever you want). And that means disengaging from your timeshare is far more complex. The laws that are applicable are the ones in the state where the timeshare is located, not where you reside, which can become perplexing if you live far away. And contrary to houses, timeshares aren’t an investment. Their worth is in the vacation location, not the timeshare itself. That makes them often difficult to sell. And purchasing a timeshare means you will be signing a contract with much legalese, making it challenging to break or get out of. These are just some of the reasons why canceling a timeshare on your own can feel unachievable.

How Timeshare Cancellation Scams Work

Timeshare cancellation scams are more prevalent than many people realize and steal millions every year. But that doesn’t mean they are intricate or cutting edge. Truth is, most timeshare cancellation scams mirror the same simple scheme. If you know what the scammers are trying to do, it’s simpler to identify when it’s happening to you. So, timeshare cancellation scams more or less look like this!

Initial Contact

There are two approaches that timeshare cancellation scam companies will employ to establish contact. Both of them should raise on-the-spot red flags.

They Call You

Many timeshare cancellation scams begin with a call from a representative employed at the cancellation company. The representative will know not only that you own a timeshare, but will also be cognizant of when you purchased it, which company sold it to you, and a number of other particulars that may surprise you.

How does the representative know all of this? Likely one of two things occurred.

Search through public records. Some companies hire people just to scan through public records.
You posted somewhere online that you wanted to sell your timeshare and the company located you through that.

In either instance, the representative reaches out to you and makes an attractive offer.

Red Flag: No reputable timeshare cancellation company will call you. They will wait for you to begin contact. It’s important to keep in mind that legitimate timeshare cancellation companies don’t need to go looking for business. They have plenty of people looking for their services already. Only con artists need to call you to try to get business.

They Entice You to Call Them

Advertising is a standard business strategy, and reputable timeshare cancellation companies do advertise. So do scammers. So, what’s the difference?

An ad from a reputable company will not guarantee results. They may tell you that your circumstance will only be accepted if you meet particular requirements or that they will only interact with specific resorts.

A scammer will promise the stars and the moon and pledge that they can resolve your situation before they even know the specifics of your contract.

Red Flag: If it sounds too good to be true, it’s probably not true.

They Make a Sales Pitch

Once a salesperson has you on the phone, you’ll hear a convincing and engaging sales pitch. They are professionals and know how to manipulate and persuade.

Scammers use several pitches:

Contract Cancellation: This is a legitimate strategy, but no reputable company will promise success without delving into the details of your contract and case history. If they assert that they can get any contract canceled, it’s a scam.
Easy Sale: Some claim they can sell your timeshare to someone else. They may state that the market is hot and that your timeshare will sell quickly and their company has loads of buyers ready to purchase, or that you’ll make a pretty profit on the sale. It’s not true; most timeshares have near-zero values.
Other Tricks: Scammers may promise to donate your timeshare to a charity, sell to a dummy LLC or other dodge. Many times, they present it as a “trick” that the timeshare companies don’t want you to know. These kinds of tricks would be legally dubious if they worked. But they just don’t work.

Still, other scammers will try to unnerve you or make you feel dumb. They may throw a ton of numbers and statistics at you to make you feel browbeaten and overwhelmed. At best, the numbers are imprecise, at worst, bold faced lies. Or they may tell you that your kids will be compelled to inherit your timeshare if you don’t get rid of it now, which isn’t true.

Red Flag: Reputable companies can tell you likely results, but they know better than to make promises. Only timeshare cancellation scam companies will give you guarantees.

They Ask for An Excessive Upfront Fee

You’ve listened to their sales pitch and decided you like what this timeshare cancellation scammer has to say, or you’ve yielded to their over-the-top sales practices. Either way, you’re on the hook. Now there is just one more step to get started – you have to pay an upfront fee.

While it’s not a red flag for a cancellation company to charge you an upfront fee (timeshare cancellations are an expensive process when there is a real process), the amount should not be excessive. One indicator of a timeshare cancellation scam is if a company asks you for tens of thousands of dollars from the beginning, especially if they aren’t being transparent about their methods and processes. If you are already being burdened by timeshare expenses, this should be seen as a major red flag. Why should you be paying them so much to help you out of a situation that is already bleeding you of your money?

A reputable timeshare cancellation company should offer long-term financing or escrow options to help minimize upfront fees. They should also provide evidence that all the money you’re paying them is going toward a concrete purpose that will help you get out of your timeshare contract. You don’t want them to keep you in the dark about what your money is actually going towards, and you certainly don’t want them to take your money and run.

Red Flag: A company that asks you to pay excessive upfront fees and is not clear about its processes and what it will be doing for you is probably only a scam.

The Scammers Make a Killing

You give them the money and follow their instructions. At that juncture, some scammers vanish. You’ll never hear from them again. If you try to follow up, you’ll never reach them, or the email address or phone number will no longer work.

Other scammers try to milk the timeshare cancellation scam. They may send you at various times totally fictitious updates that make it feel like you’re always close to getting out but never quite there. They may suggest “upgrades” or “supplemental services” for more effective accelerated outcomes – with an additional charge, of course – and exert high pressure to motivate you to do it. Or they might solicit additional charges to resolve matters that never seem to get resolved.

Some may even tell you to discontinue paying your maintenance fees to the timeshare company and pay it to them instead. Then, not only do they get to steal that money, you’re defaulting on your contract. In addition to losing money, it could negatively impact your credit score or even get you involved in legal proceedings.

Red Flag: Whatever their ploys, for those scammers who don’t just abscond, there will always be more things to pay. So, if a timeshare cancellation company continually asks you for more money during the process, be aware that it probably is a scam.

So, How Can You Prevent Falling Victim to One of These Scams?

You can safeguard yourself from timeshare cancellation scams. Here are some ways to do it.

Look For Any Red Flags

For starters, reputable timeshare cancellation companies will never call you out of the blue. You have to initiate contact. If the representative is aware of detailed particulars about you and your timeshare without you divulging any of them, that should make you suspicious.

Also, tread carefully if anything sounds too good to be true. If someone calls you up and tells you that they already have a purchaser lined up, they’re likely lying. Likewise, if they promise that they’ll sell it for you at a profit, you should hang up quickly because that’s not how the timeshare market works.

If you see an ad that guarantees relief for all situations, no matter what, don’t call.

Watch out for fallacious advice. For instance, although timeshare cancellation companies might tell you differently (for nefarious reasons) you should not stop remitting your maintenance fees until you are certain you are no longer the owner of the timeshare. There will be impactful consequences.

The foremost red flag is being asked to pay exorbitant fees upfront. Also, you need to make certain that you are on the same page as the timeshare cancellation company as to their processes and what they will be doing for you. Any uncertainty from them is a bad sign.

Be Proactive and Attentive

While being aware of red flags is a must (there are plenty) you can still protect yourself even further.

To begin with, if you’re the one reaching out to a timeshare cancellation company, then you should do your due diligence first. This includes looking up the company on the Better Business Bureau website and appraising the company’s reputation for yourself. You might want to double check and make sure that the company in question is both licensed and accredited.

And be extra careful with a company that just changed its name or address, as there might be something amiss there.

If you do engage a timeshare cancellation company, be certain to get everything in writing. This includes any commitments or agreements the company makes to you. And, of course, always carefully read every single document you are asked to sign.

The Value of Professional Timeshare Cancellation Services

When you invest in a reputable timeshare cancellation service, you’re getting:

Expertise: Professionals who understand the intricacies of timeshare contracts and cancellation processes
Personalized Strategy: A tailored approach to your specific situation
Proper Documentation: Ensuring all paperwork is correctly handled to protect your interests
Peace of Mind: Assurance that your cancellation will be processed professionally and ethically from start to finish

Investing in a quality cancellation service can save you tens of thousands in the long run.

If you need help with a timeshare cancellation, turn to TimeShareBeGone. We have an excellent track record on BBB because we employ a time-tested, multi-faceted cancellation strategy that works. When you give us the details of your situation with your timeshare developer, we will thoroughly and honestly evaluate your circumstances to see if getting you out of timeshare ownership is possible.