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Are Timeshare Cancellation Companies Scams?

If you want to cancel your timeshare, the first thing you need to do is find a company that offers this service. Most of the time, these companies require you to pay a large upfront fee to cancel your timeshare. Then, they fail to perform the service as promised. These companies are known as timeshare cancellation scams.
False advertising
Consumers can be careful about timeshare cancellation companies, as there is a history of false advertising and scams surrounding these services. Consumers should always be aware of how to spot a fraudulent company before they fall victim to it. A new lawsuit filed by Diamond Resorts, a global leader in vacation ownership and entertainment, focuses on these companies. In this lawsuit, Diamond is alleging that the companies are engaging in false advertising, misleading consumers, and breaching their contracts.
Some cancellation companies send out mailers with misleading information in an attempt to convince timeshare owners to attend a sales presentation or pay exorbitant fees. For instance, one mailer from Newton Group falsely claims that new timeshare laws have changed so that developers can raise maintenance fees with little or no restrictions. That isn’t true, according to a lawsuit filed by Diamond Resorts on May 11.
Another company that uses false advertising to lure timeshare owners is Timeshare Exit Team. It claims to have a legal solution to cancel a timeshare, but their letters aren’t legitimate. The company uses the law firm SGB to send fake letters advising timeshare owners to stop making payments. These actions can lead to foreclosure and damage a consumer’s credit.
The company has warned customers of an alarming increase in “timeshare cancellation” companies. According to the complaint, these companies flood the media with false advertisements and charge consumers thousands of dollars in upfront fees. Diamond Resorts has been the target of numerous complaints based on these companies. These lawsuits seek to prevent the use of misleading advertising and scams and are intended to protect consumers.
While many timeshare cancellation companies purport to be legal, many of them are not. In fact, the majority of these companies don’t represent their clients. They are paid by the timeshare developers and split their upfront fees with them. Some of these companies don’t even provide legal advice and instead attempt to trick consumers into believing that they’re the best option for their needs.
Fraudulent timeshare cancellation companies
A common scam is the use of a timeshare cancellation company to get people to cancel their timeshares. The truth is that a timeshare contract is not a legal way to cancel, and fraudulent timeshare cancellation companies will try to persuade you that it is. In reality, however, you will continue to pay the timeshare loans and membership dues.
To avoid falling victim to this scam, you should first contact your timeshare company. If they do not provide you with an answer to your questions, you should immediately disregard their contact. Furthermore, if you receive unsolicited calls from a timeshare cancellation company, do not trust them. You should never send them any money without confirming their legitimacy.
Fraudulent timeshare cancellation companies are simply a scam, which take advantage of timeshare owners to obtain a large upfront fee. These companies can then disappear with your money, leaving you in financial stress. Hopefully, you are savvy enough to recognize the signs of a timeshare cancellation scam and avoid it as much as possible.
The timeshare exit industry has changed radically in recent years. Unlike in the past, timeshare exit is no longer cheap, quick, or easy. This has led to a rise in fraudulent companies looking to take advantage of timeshare owners. Many of these companies advertise a high success rate, but it is impossible to know if you can trust their claims. They also use scare tactics to make their clients believe they can get out of their contracts and avoid paying maintenance fees.
In reality, you cannot cancel your timeshare contract once the cooling-off period has expired. However, there are legitimate timeshare cancellation companies who will work on your behalf and handle the legal paperwork. A timeshare cancellation company can be a legitimate option, but only if you know what you’re doing.
These companies target older timeshare owners. As an example, Ed Roach received a phone call from a timeshare exit company in 2017. This company claimed to be associated with Wyndham resorts and would offer free dinner or an iPad to get rid of his timeshare.
High upfront fees
Timeshare owners who are looking for a way to get out of their timeshare contracts are being targeted by “exit companies,” which often advertise through robocalls, direct mail, and television commercials. Many of these companies claim to be able to help owners with their timeshare contracts, but in reality, they simply pocket the upfront fees of timeshare owners and do little to help them get out of their contracts.
One of the most common ways that timeshare exit companies operate is by advertising a 100% guarantee or money-back guarantee. These scams take advantage of the desperate state of many timeshare owners by charging huge upfront fees. These companies may offer a guarantee or an implied time-frame, but in reality, they simply do not deliver on their promises.
Despite the numerous benefits of timeshare cancellation companies, many of them are unreliable and unsafe. In addition to charging high upfront fees, most timeshare cancellation companies do not actually cancel your timeshare and foreclose on your property, which will damage your credit. Furthermore, if you fail to pay the fees, you will forfeit your timeshare and make a large payment to the company. This will leave you with a negative credit score and even a foreclosure.
Timeshare cancellation companies are illegal if they contact you without your permission. You should never give personal information or pay any up-front fees to timeshare cancellation companies. Moreover, they should not ask for your credit card number, email address, or bank account number. These companies are known to use fictitious explanations to convince you to pay their fees.
Some timeshare cancellation companies charge hefty upfront fees, sometimes as much as $10,000. These companies claim to provide a guarantee of a refund within 12 to 18 months, but many of them do not deliver. Some of them have gone bankrupt, or failed to get owners out of their timeshare. Some of them also falsely tell owners their deed has been transferred. After months, the timeshare owner discovers that they are underwater and their credit has been damaged.
The only way to avoid being a victim of timeshare cancellation scams is to make sure you do research. Some of these companies are legitimate, but be cautious about the high upfront fees they charge. These companies will not only fail to get you out of your timeshare contract, but they will also charge you a lot more than you should are timeshare cancellation companies scams.
Failure to complete service
Timeshare exit scams are illegal schemes to trick timeshare owners into paying money to get assurances that they will help them leave their timeshare. Most often, these companies promise a money back guarantee but never follow through with the work. Consumers who use such companies end up losing a significant amount of money and are not able to get out of their timeshares.
Such companies typically market their services with promises of money back and completion in a short period of time. In return for these promises, they obtain large upfront payments from clients but then fail to perform the timeshare service and often file for bankruptcy. Some of these companies have ripped off thousands of people, leaving them out of money and timeshares that they no longer wanted. This is why you need to be careful when selecting a timeshare cancellation company.
Timeshare exit companies are a common source of complaints from timeshare owners. However, not all timeshare owners qualify for their programs. Timeshare owners who have mortgages or are behind on fees are not eligible to participate in such programs. This industry is attempting to portray itself as a white-hatted hero that is rescuing consumers from the nightmare of timeshare debt. Some of these companies even refer to themselves as consumer protection groups.
Timeshare cancellation companies advertise on the major media and promise to get rid of timeshare contracts. The salespeople often distract you from the reality of their services. And they usually include industry jargon in their documents to confuse you. Once you’ve signed up, these companies are unlikely to fulfill their promises and offer you a money back guarantee. As a result, you may be putting yourself in a dangerous position financially.