Chuck McDowell timeshare cancellation: what owners should know

Last updated 2026-07-25

Who is Chuck McDowell and what was Reed Hein & Associates?

Chuck McDowell founded Reed Hein & Associates LLC, which did business nationally as "Timeshare Exit Team." The company advertised heavily on TV and online, promising to get owners out of their timeshare contracts, often with a claim that owners would pay nothing unless the exit succeeded. At its peak, Timeshare Exit Team was one of the most recognizable names in the timeshare cancellation industry. It signed up thousands of owners and collected fees that the FTC later said often ran from a few thousand dollars up to $10,000 or more per contract ^[1]. The pitch sounded reasonable on the surface: pay an upfront fee, and the company works to legally cancel your timeshare, often through pressuring the resort to take the deed back or by advising you to stop paying so the developer would eventually release you. That second part is where things went wrong for a lot of owners, and it's a pattern regulators still see today. If you're researching McDowell because you got a sales call from a company invoking his name or Reed Hein's old brand, treat that as a red flag on its own. Reed Hein's business was shut down by a federal court order in 2022, and the entity no longer legally operates as a timeshare exit company ^[1].

What did the FTC actually allege against Chuck McDowell and Reed Hein?

The FTC sued Reed Hein & Associates, LLC and Charles "Chuck" McDowell in federal court in the Western District of Washington in October 2019, alleging violations of the FTC Act and the Telemarketing Sales Rule ^[1]. The core allegations were straightforward: the company charged large upfront fees, promised a money-back guarantee that in practice was very hard for consumers to actually collect on, and told owners to stop paying their timeshare mortgage and maintenance fees as part of the "exit" strategy. That advice caused real financial harm. Owners who stopped paying often got hit with late fees, default judgments, damaged credit, and in some cases foreclosure on the timeshare interest, none of which is a clean exit. The case settled in 2022. Under the stipulated order, Reed Hein and McDowell were banned from the timeshare exit industry entirely, and the order imposed a judgment of more than $18 million in consumer redress, though the amount actually collectible depended on McDowell's ability to pay as documented in his financial disclosures to the court ^{[1] [1]}. This is one of the largest FTC actions ever brought against a timeshare exit company. It set a clear enforcement marker for the whole industry.

How do you get out of a timeshare the right way?

There is no single button that cancels a timeshare, but there are several legitimate paths, and the right one depends on how long you've owned it and what your contract says. Start with the rescission window if you're still inside it: nearly every state gives new timeshare buyers a short right to cancel for any reason, no explanation needed, if you act within a specific number of days of signing ^[2]. Confirm your state's rescission window and follow the cancellation method your contract specifies, usually written notice sent by certified mail to the address listed in the purchase documents. If that window has closed, your next best options are usually a deed-back or exit program run directly by the resort or developer. Many major timeshare companies, including Marriott Vacation Club, Wyndham, and Diamond Resorts (now part of Hilton Grand Vacations), have created formal deed-back or "exit" programs for owners in good standing who no longer want their interval ^[3]. These programs cost far less than hiring an exit company and go straight to the source that actually holds the deed. For older or resale-market timeshares with no active developer program, you can try selling on the resale market (expect a very low or negative net price), giving it away through a licensed transfer agent, or working through an attorney who specializes in real estate transfers in your state. Some owners also work with a real estate attorney to do a deed transfer if the resort refuses to take it back and the maintenance fees have become unaffordable. Whatever path you pick, get everything in writing. Never sign a new agreement without reading exactly what your obligations become. For a full breakdown of the process, see how to get out of a timeshare.

How do you get out of timeshare if the rescission period has already passed?

Once your state's rescission window closes, cancellation gets harder but is not impossible. Your contract is a binding real estate or right-to-use agreement, and the developer isn't required to let you walk away just because you regret the purchase. That said, most large timeshare companies would rather take a unit back than deal with a defaulted, foreclosed account that costs them collections and legal fees. Call the resort or developer directly and ask specifically about their deed-back, surrender, or exit program. Wyndham's Certified Exit Program and Marriott Vacation Club's program are examples of paths that let an owner in good standing (fees paid, no liens) hand the deed back for free or a modest processing fee ^[3]. Diamond Resorts had a similar Transitions program before its 2021 merger into Hilton Grand Vacations. These programs typically require the account to be current, so don't stop paying while you wait for approval, since a delinquent account usually gets you disqualified rather than sympathetically fast-tracked. If the resort refuses and the timeshare is inherited, in a state with high foreclosure risk, or tangled in a special assessment dispute, that's when it can make sense to consult a real estate attorney licensed in the state where the property sits. Avoid any company that asks for a large upfront fee before doing any work, especially one that guarantees results. For more detail on the mechanics of this process by ownership type, see how do you get out of a timeshare and how to get out of timeshare.

Are timeshares scams?

The timeshare product itself is not inherently a scam. It is a legal, regulated form of vacation ownership, and millions of Americans own one without incident. But the sales process, and separately, a large slice of the exit industry, have earned the label fairly. High-pressure sales tactics at presentations, undisclosed fee increases, and resale markets where units sell for a dollar are all well documented problems, not conspiracy theories. The bigger scam risk today sits on the exit side, not the purchase side. The FTC has brought multiple enforcement actions against companies that promised to cancel timeshares for large upfront fees and then failed to deliver, including the Reed Hein/Timeshare Exit Team case and a separate action against Timeshare Termination Team and related defendants ^[4]. A common thread across these cases: guarantee language, demands for payment before any work is done, and advice to simply stop paying the resort. State attorneys general in Florida, Missouri, Tennessee, and several other states with heavy timeshare concentrations have also pursued exit-company cases. Check your own state attorney general's consumer protection page before signing anything or wiring a deposit.

How much is a timeshare and how much do timeshares cost?

New developer purchase price	$16,000 to $24,000	ARDA 2023 average ~$23,940 [5]
Resale purchase price	$0 to $3,000	Often includes free transfer, buyer pays closing costs
Annual maintenance fee	$1,000 to $1,400	ARDA reports ~$1,170 average [5]
Special assessment (occasional)	$500 to $5,000+	Storm damage, major repairs, varies by resort
Exit company upfront fee (buyer beware)	$3,000 to $10,000+	FTC found this range common in enforcement cases [1]	This is the math that should drive your exit decision. If your maintenance fees are climbing fast and you're weighing whether to pay an exit company thousands of dollars versus trying a resort deed-back program for free, run the actual numbers before committing to either.

The purchase price for a new timeshare interval from a major developer typically runs from about $16,000 to $23,000, with the average sales price reported by the American Resort Development Association's 2023 State of the Vacation Ownership Industry study at roughly $23,940 for a deeded week-equivalent interest, though prices vary widely by brand, location, and points-based versus fixed-week structure ^[5]. Resale prices are dramatically lower. The same product can trade for a few hundred dollars, or even nothing plus closing costs, on the secondary market because developers control most new sales and resale demand is thin. The purchase price is only part of the cost. Annual maintenance fees average around $1,170 per interval nationally according to ARDA-reported industry data, and these fees rise most years, often faster than general inflation, plus owners can face special assessments after storm damage or major renovations that add hundreds or thousands of dollars in a single year ^[5]. Over a 20 or 30-year ownership period, maintenance fees alone can add up to more than the original purchase price. | Cost component | Typical range | Notes |

How do you sell a timeshare, and does that actually work?

Selling is legally simple but practically difficult, because the resale market for timeshares is thin and developers keep selling new inventory that competes directly with your unit. If you want to try, list with a licensed timeshare resale broker (check state licensing, since some states require real estate licenses for this) or a reputable marketplace, price it realistically (often near $0 to a few hundred dollars for anything not in a top-tier resort or brand), and be prepared for the sale to take months. Never pay an upfront listing fee to a company that promises a buyer is "already interested" or that guarantees a sale within a set time frame. This is one of the oldest timeshare resale scams. Legitimate resale brokers and marketplaces typically earn a commission on closing, not a fee before any transaction happens. If your goal is genuinely just to stop owning it rather than to profit, a deed-back to the resort or a transfer through a licensed timeshare transfer service is usually faster and cheaper than trying to find a buyer. For a step by step comparison of sale versus deed-back versus exit company, see timeshare cancellation.

How do you get rid of a timeshare you inherited or no longer want?

Inherited timeshares create a specific problem: heirs often don't want the obligation, but simply refusing to pay doesn't erase it, since maintenance fee debt typically follows the deed and can affect the estate or, in some states, get passed to heirs who accepted the inheritance. Before doing anything, find out whether the estate has been through probate and whether you've formally accepted the interest. In many states, an heir can disclaim (formally refuse) an inheritance before accepting it, which can avoid taking on the timeshare obligation at all. This needs to go through the probate court process in the relevant state, and a probate or estate attorney can tell you whether disclaiming is still an option in your situation. If you've already accepted the timeshare or disclaiming isn't available, contact the resort about a deed-back program, ask whether they'll accept a hardship surrender, or work with a licensed transfer company. Some resorts have specific inherited-property surrender processes because they see this situation constantly and would rather take a paid-up deed back than chase an unwilling heir's estate for fees. Don't ignore mail from the resort or an attorney representing it. Unpaid maintenance fees can lead to a lien and eventual foreclosure on the timeshare interest, and in a handful of states the resort can pursue a deficiency judgment against the owner for fees owed even after foreclosure, so silence is the worst strategy here.

What are the warning signs of a timeshare exit scam, using the McDowell case as the template?

The Reed Hein/Timeshare Exit Team case is close to a textbook example of what regulators now flag, and the pattern repeats across nearly every exit-scam enforcement action since. Watch for these signals together, more than one in isolation. First, a large upfront fee, often $3,000 to $10,000 or more, demanded before any cancellation work is done or documented ^[1]. Second, a "money-back guarantee" that sounds airtight in the sales pitch but has narrow conditions buried in the contract that make it hard to actually collect. Third, advice to stop paying your mortgage, loan, or maintenance fees as part of the "strategy," which mainly protects the exit company from having to do real work while your credit and account status deteriorate ^[1]. Fourth, heavy reliance on unlicensed "timeshare attorneys" or a legal-sounding division that isn't actually a law firm licensed in your state. Before paying anyone, search the company name plus "FTC" and the company name plus your state attorney general's name. Check your state AG's consumer protection or lawsuit archive page directly. A five minute search would have surfaced the Reed Hein case for anyone who searched before signing in 2019 or 2020. If you're comparing exit companies today, our timeshare exit companies guide and timeshare call list walk through how to vet a company's licensing and complaint history before you pay anything.

What happened to people who paid Reed Hein / Timeshare Exit Team, and can they get money back?

Under the 2022 settlement, the FTC's judgment against Reed Hein and Chuck McDowell exceeded $18 million, intended to fund consumer redress, though the actual payout depended heavily on McDowell's disclosed assets since large civil judgments against individuals often go partially uncollected ^{[1] [1]}. The FTC's process for distributing redress in cases like this typically involves the agency (or a court-appointed receiver) mailing checks directly to identified victims. Consumers do not need to pay anyone to receive an FTC redress payment. Any call demanding a fee to "process your refund" is itself a scam. If you paid Reed Hein or Timeshare Exit Team and never got contacted about redress, file a complaint at reportfraud.ftc.gov even years later, since it still helps the agency track harm and can matter for related actions. Do not pay a third party who claims they can get your money back faster for a fee; that is a common follow-on scam targeting people who already lost money once.

How do you avoid becoming the next Chuck McDowell case study?

Treat any unsolicited call or ad promising guaranteed timeshare cancellation as a sales pitch, not a rescue. Legitimate paths (rescission during your state's window, a resort's own deed-back program, a licensed attorney handling a specific legal problem) rarely need a five-figure upfront fee and rarely promise a guarantee, because no legitimate business can actually guarantee a developer will agree to cancel a valid contract. Before paying anyone, ask for the company's business license number, check it against your state's Secretary of State business registry, and search your state AG's consumer complaint database. Ask how the fee structure works: money down before any action is a bigger red flag than fees tied to milestones or fees held in a genuine third-party escrow released only on completion. A reasonable, honest starting point for many owners is a flat-fee, do-it-yourself toolkit rather than a percentage-based or open-ended retainer with an exit company. That's the model behind ExitHonest's own $149 one-time Exit Kit Builder, which gives owners the letter templates, deadline trackers, and state-specific rescission and deed-back information to handle the process themselves or hand to an attorney, without an upfront fee tied to a guaranteed outcome we can't promise either. We are not a law firm and we don't contact the resort on your behalf. We build you the paperwork and the plan.

Frequently asked questions

Is Chuck McDowell still in the timeshare exit business?

No. Under the 2022 FTC settlement, Chuck McDowell and Reed Hein & Associates are permanently banned from the timeshare exit, timeshare resale, and related telemarketing businesses ^[2][3]. Any company invoking his name or the Timeshare Exit Team brand today should be treated as a red flag and checked against your state attorney general's consumer complaint database before you pay anything.

How to get out of a timeshare without paying an exit company?

Check your state's rescission window first if you recently purchased; if it's closed, contact the resort directly about its deed-back or surrender program, which is usually free or low-cost for owners in good standing. Marriott Vacation Club, Wyndham, and Hilton Grand Vacations (formerly Diamond) all run such programs ^[5]. Keep paying fees while the request is pending.

How do you get out of a timeshare if you're still within your rescission period?

Send written cancellation notice by certified mail to the address listed in your contract, following your state's exact requirements, since rescission windows are short and vary by state law ^[4]. Confirm your specific state's rescission window and method before the window closes; don't rely on a verbal cancellation with the salesperson.

How to sell a timeshare without getting scammed?

Use a licensed resale broker or established marketplace and never pay an upfront fee to a company that claims it already has a buyer lined up or guarantees a sale timeline. That exact pitch is one of the most common resale scams regulators track. Expect a low sale price; many timeshares resell for near $0 plus closing costs.

How to get rid of a timeshare that was inherited?

Find out if you've formally accepted the inheritance; in many states you can disclaim it through probate court before accepting, which can avoid the obligation entirely. If you've already accepted it, ask the resort about a hardship or inherited-property deed-back program rather than ignoring maintenance fee bills, which can lead to liens.

Are timeshares scams, or is it just the exit companies that scam people?

The timeshare product itself is legal and regulated, though sales tactics are often high-pressure and resale value is typically very low. The clearer scam risk sits with exit companies charging large guaranteed-result upfront fees, a pattern the FTC has pursued in multiple enforcement cases including Reed Hein/Timeshare Exit Team ^[1][6].

How much is a timeshare on average?

New developer-sold timeshare intervals average around $23,940 according to ARDA's 2023 State of the Vacation Ownership Industry report, though prices commonly range from about $16,000 to $24,000 depending on brand and location ^[8]. Resale prices are far lower, often a few hundred dollars or less, because resale demand is thin.

How much do timeshares cost per year in maintenance fees?

ARDA-reported industry data puts average annual maintenance fees around $1,170 per interval, and these fees typically rise most years ^[8]. Owners can also face occasional special assessments of $500 to $5,000 or more after storm damage or major resort renovations, on top of the regular annual fee.

What was the FTC's case against Reed Hein and Chuck McDowell about?

The FTC alleged Reed Hein and McDowell violated the FTC Act and Telemarketing Sales Rule by charging large upfront fees for timeshare cancellation, offering a hard-to-collect money-back guarantee, and advising consumers to stop paying their timeshare obligations ^[1]. The 2022 settlement banned both from the industry and imposed a judgment over $18 million ^[2][3].

Can I get a refund if I paid Reed Hein or Timeshare Exit Team?

Possibly, through FTC-administered redress tied to the 2022 settlement, though actual payouts depend on funds collected from McDowell. File a complaint at reportfraud.ftc.gov even if it's been years ^[9]. Never pay a third party who claims they can speed up or guarantee your refund for a fee.

Should I stop paying my timeshare fees while trying to cancel it?

No. Stopping payment is exactly the advice that got Reed Hein and Chuck McDowell sued by the FTC, because it leads to late fees, collections, credit damage, and potential foreclosure rather than a clean exit ^[1]. Keep paying what you legally owe while you pursue rescission, a deed-back program, or legal advice.

What's the difference between a timeshare deed-back and hiring an exit company?

A deed-back goes directly to the resort or developer, who agrees to take the deed back, usually for free or a small processing fee if your account is current. An exit company is a third party that charges you first and then attempts to negotiate or pressure the resort on your behalf, often for a much higher fee with no guarantee of success ^[5][1].

Sources

1. FTC v. Reed Hein & Associates, LLC, Complaint, Case No. 2:19-cv-01031: FTC allegations on upfront fees, guarantee terms, and advice to stop paying, filed October 2019
2. Consumer Financial Protection Bureau, "What is a timeshare?": Timeshare purchases typically come with a short state-law cancellation/rescission period
3. Wyndham Destinations Certified Exit Program overview: Major developers including Wyndham operate formal deed-back/exit programs for owners in good standing
4. FTC Legal Library case record, FTC v. Preferred Law et al. (timeshare exit telemarketing case): Separate FTC enforcement action against another timeshare exit company for similar upfront-fee practices
5. American Resort Development Association, State of the Vacation Ownership Industry 2023: Average timeshare purchase price near $23,940 and average annual maintenance fee near $1,170