Timeshare Exit Team lawsuit: what happened and what it means

Last updated 2026-07-25

What is the Timeshare Exit Team lawsuit about?

"Timeshare Exit Team" is one of many names used by companies in the timeshare exit industry, and it's the kind of name that gets searched a lot because owners want to know if a company they were pitched is legitimate or already in legal trouble. The honest answer is that the exit industry as a whole has a documented pattern of state attorney general actions, more than one isolated case. The Missouri Attorney General sued Resort Advisory Group and related entities operating timeshare exit and relief schemes, alleging the companies took upfront fees from consumers and never delivered the promised cancellation or relief ^[1]. The Washington State Attorney General also sued a group of timeshare exit companies, alleging deceptive practices including false promises that the companies could get consumers out of their contracts and would refund fees if they failed ^[2]. These are real, filed cases you can read on the AG's own websites. If you're trying to check on a specific company name, the right move isn't to trust a blog post claiming a lawsuit exists. Search your state attorney general's consumer protection press releases directly, and check the FTC's public guidance on avoiding timeshare resale and exit scams ^[3]. Company names in this space change often, sometimes specifically to dodge a bad reputation from a prior name. For a broader look at how to vet any company before you pay them, see timeshare exit companies.

How do timeshare exit scams typically work?

The pattern shows up again and again in AG complaints and FTC guidance: a company cold-calls or advertises heavily, promises to "guarantee" your timeshare cancellation, demands a large fee upfront (commonly $3,000 to $10,000, sometimes more), and then does little or nothing. Some tell you to stop paying your maintenance fees or mortgage while they "work on it." That wrecks your credit. It can trigger foreclosure. The FTC's guidance on timeshare resales and exits warns that consumers should be skeptical of anyone who claims they can guarantee a resort will take a deed back or that a court will void a contract ^[3]. Ownership contracts are legally binding, and exit outcomes depend on your specific contract terms, your state's law, and sometimes the resort's willingness to cooperate. A second common scam layer is the "recovery" scam. After you've already lost money to one exit company, a second company calls claiming they can get your money back, for another upfront fee. State AGs have flagged this exact double-dip pattern in their timeshare-related consumer alerts ^[1][2]. We are not a law firm and we don't contact resorts or developers on your behalf, and neither should any company that can't clearly explain, in writing, exactly what steps it will take and what its refund policy is if those steps fail.

Are timeshares scams?

The timeshare industry itself isn't illegal, and most timeshare developers are legitimate, regulated businesses selling a real (if often overpriced) vacation product. But the industry has a real and well-documented scam problem on two fronts: aggressive, sometimes misleading sales presentations at the point of purchase, and a cottage industry of exit and resale scams that prey on owners trying to get out later. The FTC's guidance on timeshare resales warns consumers to be wary of resale and exit companies that ask for money upfront before providing any service, and to be skeptical of high-pressure pitches ^[3]. That's a strong signal, not proof that every company is a fraud, but a pattern regulators keep seeing. So the fair answer to "are timeshares scams" is this: the product itself is usually legal but often a bad deal financially, and the secondary markets around buying resale and exiting are where outright fraud concentrates. If you're deciding whether to buy, sell, or walk away, read the actual numbers below before deciding your ownership was a "scam" versus just an expensive mistake.

How much do timeshares cost?

Purchase price (developer)	$15,000-$30,000+	Average $23,940 in 2023 [4]
Annual maintenance fee	$1,000-$1,400+	Average $1,205 in 2023 [4], rises most years
Special assessments	$500-$5,000+	Irregular, per-incident
Financing interest (if financed)	12%-18% APR	Developer financing is common and expensive
Resale value	Often near $0-$1	Resale market is flooded; many owners can't give timeshares away	That last row surprises a lot of new owners. Because so many people are trying to exit and so few are trying to buy, resale prices for most timeshares are a fraction of the original purchase price, sometimes literally $1 on resale marketplaces, with the seller often still paying closing costs.

The average price of a timeshare interval was $23,940 in 2023, according to the American Resort Development Association's (ARDA) State of the Vacation Timeshare Industry report ^[4]. That's the purchase price alone, not counting closing costs or financing interest, which can run 12% to 18% APR if you finance through the developer. On top of the purchase price, average annual maintenance fees were $1,205 in 2023 per ARDA's industry data ^[4]. Maintenance fees are not fixed for life. They typically rise every year with inflation and resort upkeep costs, and special assessments (one-time extra charges for storm damage, renovations, or litigation costs) can add thousands more in a single year with little warning. Here's a rough cost picture over ownership: | Cost type | Typical range | Notes |

How much are timeshares to maintain each year, and why do fees keep rising?

Maintenance fees fund the resort's operating budget: staffing, insurance, utilities, landscaping, and a reserve fund for future renovations. Because these are shared costs split across owners in a homeowners-association-style structure, they tend to rise with property insurance costs, labor costs, and deferred maintenance. Owners have very little say in voting them down. ARDA's 2023 data put the average annual fee at $1,205, but fees vary widely by resort brand, unit size, and location; beachfront and high-amenity resorts often run well above that average ^[4]. If your resort has had storm damage (common in Florida and Gulf Coast properties) or is aging past 20-25 years, expect special assessments layered on top of the base fee. Rising fees are the single biggest driver of owners searching for an exit. If fees are your main pain point, it's worth first confirming there's no cheaper legitimate path out, like a developer deed-back program, before paying anyone a large upfront fee to "cancel" the contract for you.

How do you get out of a timeshare?

There are basically four legitimate paths, and they matter in this order: 1. Rescission (if you just bought). Every state gives new timeshare buyers a right to cancel within a short window after signing, no reason needed. This is by far the cheapest and fastest exit, but the window is short, ranging roughly from 3 to 15 calendar days depending on the state, so confirm your state's rescission window immediately if you're still inside it. See how to get out of a timeshare for the state-by-state mechanics. 2. Developer deed-back or exit programs. Many major developers now run their own deed-back programs (sometimes called surrender or deedback programs) that let owners return a paid-off timeshare, sometimes for a small fee, sometimes free. Not every resort offers one, and eligibility rules vary, but it's worth asking your resort directly before hiring anyone. 3. Selling on the resale market. If your timeshare has any resale value (rare, but it happens with some fixed-week or high-demand properties), a licensed resale broker or a peer-to-peer marketplace can move it. Expect a low price and understand that most transfers still require you to pay any owed fees at closing. 4. Hiring a paid exit or transfer service. This is the highest-risk, highest-cost path, and it's where the lawsuits discussed above concentrate. If you go this route, get everything in writing, check the company's complaint history with your state AG and the Better Business Bureau, and never pay 100% upfront with no milestone-based structure. What you should not do: stop paying maintenance fees or your loan on the theory that nonpayment forces a cancellation. Nonpayment doesn't cancel a contract. It just adds late fees, damages your credit, and can lead to foreclosure on the timeshare interest, which stays on your credit report.

How to sell a timeshare (and should you even try)?

Selling is legally simple but practically hard, because demand is thin and most buyers know they can get a similar unit for near-zero on the resale market. If you want to try: First, get a real read on value. Check completed (more than listed) sales on established resale marketplaces for your same resort and unit type. Listing prices are aspirational; completed sales tell you the truth. Second, use a licensed timeshare resale broker if you use one at all, and confirm licensing with your state real estate commission. Avoid any company that asks for an upfront "marketing fee" before it has a buyer; the FTC's guidance specifically warns against advance-fee resale schemes ^[3]. Third, budget for the reality that you may need to pay someone to take it, including covering closing costs and prorated maintenance fees, rather than receiving a payout. That's not a scam, that's just current market conditions for the majority of timeshares. For a longer walkthrough of listing, pricing, and closing mechanics, see timeshare cancellation, which covers the practical steps once you've decided sale isn't realistic and cancellation or deed-back is the better path.

How to get rid of a timeshare when it's inherited and you never wanted it

Inherited timeshares are one of the most common reasons people search for an exit, and the good news is you usually have more options than the original owner thought. An estate's personal representative (executor) can typically disclaim (formally refuse) an inheritance, including a timeshare interest, under state disclaimer statutes, which in many states must be done in writing within nine months of the death for federal tax-disclaimer purposes under 26 U.S.C. § 2518 ^[5]. If you've already accepted the inheritance (for example, by using the unit or paying a fee), disclaiming becomes harder, so speed matters. Contact the resort in writing as soon as you know about the inheritance and ask about their deed-back or hardship program for heirs; many resorts have a specific process for this because it's such a common situation. Don't assume you're stuck just because your name is on paperwork the estate's attorney sent you. Talk to the estate's probate attorney about disclaiming before you sign anything the resort sends you, since signing can be treated as acceptance.

How can I check if a specific exit company has been sued or has complaints against it?

Do this before you sign anything or pay anything: Search your state attorney general's website for "timeshare exit" or the specific company name in their consumer protection news releases. Missouri's AG action against Resort Advisory Group ^[1] and Washington's AG action against a group of timeshare exit companies ^[2] are both public record and searchable. Check the FTC's consumer guidance on timeshare resales and exits for the patterns regulators track ^[3]. The FTC doesn't handle individual disputes but tracks patterns and sometimes brings its own cases. Search the Better Business Bureau for the company's actual legal name (more than a marketing brand name), since many exit companies operate under a parent company with a different registered name. Ask the company directly: "What is your refund policy if you don't get my timeshare cancelled, and can I have that in writing?" A legitimate company will answer this without hesitation. One that dodges, pressures you to sign same-day, or asks for wire transfer or gift cards is showing you the classic scam signature.

What should I actually do if I already paid an exit company and nothing happened?

File a complaint with the FTC at reportfraud.ftc.gov and with your state attorney general's consumer protection division. These complaints build the record that leads to the exact kind of enforcement actions cited above, and they're also how AGs identify patterns worth suing over. If you paid by credit card, contact your card issuer about a chargeback; many cardholder agreements allow disputes for services not rendered, though time limits apply (typically 60 days from the statement date under the Fair Credit Billing Act, 15 U.S.C. § 1666) ^[6]. Do not pay a second company that calls claiming it can "recover" your lost fee. That's the recovery-scam pattern regulators specifically warn about, and it targets people who've already been burned once.

Where does a $149 exit kit fit versus a $5,000 exit company?

If you've read this far, you've seen the two extremes: pay a company thousands of dollars and hope, or try to handle it yourself with no guidance and risk missing a deadline or a required disclosure. There's a middle path that a lot of owners don't know exists. ExitHonest's $149 one-time Exit Kit Builder gives you the state-specific rescission letter templates, deed-back request templates, and a document checklist so you can pursue the cheap, legitimate paths yourself, rescission if you're still in the window, or a deed-back or hardship request to your resort, without paying a company thousands of dollars to make phone calls you can make yourself. It's not a guarantee of anything (nobody legitimate can promise that), and it's not a substitute for an attorney if your situation involves active litigation or a contested estate. But for the common case of "I want to send my resort a proper cancellation or deed-back request and I don't know what that letter needs to say," it's a fraction of what an exit company charges for the same basic paperwork. For comparison shopping between exit companies, self-help paths, and everything in between, timeshare exit companies walks through the tradeoffs in more depth.

Frequently asked questions

Is Timeshare Exit Team a real company under investigation?

Names like this circulate in an industry where state attorneys general have sued multiple exit companies for deceptive practices, including actions in Missouri ^[1] and Washington ^[2]. Before trusting or paying any company using this or a similar name, search your state AG's press releases and the FTC's site directly for that exact legal entity name, since marketing names change often.

How to get out of a timeshare if I'm still within days of signing?

Check your state's rescission statute immediately; every state gives new buyers a short cancellation window, often between 3 and 15 days, no reason required. Send your cancellation notice in writing, by the method your contract specifies (often certified mail), before the deadline. See how to get out of a timeshare for state-specific steps.

How do you get out of a timeshare after the rescission period ends?

Ask your resort about a deed-back or surrender program first, since many major developers now offer one, sometimes free. If that's unavailable, consider resale (expect little to no payout) or a paid transfer service, but vet any company through your state AG's site before paying anything upfront.

How to sell a timeshare fast?

Realistically, "fast" and "good price" rarely go together in this market. Licensed resale brokers and peer marketplaces can move some units, but expect to net little or nothing, and possibly to pay closing costs yourself. Avoid any company demanding an upfront marketing fee before securing a buyer, which the FTC flags as a common resale scam pattern ^[3].

How to get rid of a timeshare I inherited and never wanted?

If you haven't formally accepted the inheritance, ask the estate's probate attorney about disclaiming it under your state's disclaimer law and IRC § 2518, generally within nine months of death ^[5]. If you've already accepted it, contact the resort about heir-specific deed-back or hardship programs before paying an outside company.

Are timeshares scams or just bad investments?

Most timeshare developers are legal, regulated businesses, not outright frauds, but the product is rarely a good financial investment and resale value is usually near zero. The real fraud risk concentrates in the exit and resale industry, where the FTC and multiple state AGs have documented upfront-fee scams ^[1][2][3].

How much is a timeshare, on average?

The average purchase price was $23,940 in 2023, according to ARDA's State of the Vacation Timeshare Industry report ^[4]. That's before financing interest, which runs 12% to 18% APR through many developers, and before annual maintenance fees, which averaged $1,205 in 2023 ^[4].

How much do timeshares cost per year to maintain?

Average annual maintenance fees were $1,205 in 2023 per ARDA industry data ^[4], and they typically rise each year. Special assessments for storm damage or renovations can add hundreds to thousands more in a single year, on top of the base fee.

Can a timeshare exit company guarantee they'll cancel my contract?

No legitimate company can guarantee this. The FTC's guidance on timeshare resales and exits warns owners to be skeptical of any guaranteed-exit promise, since outcomes depend on your contract, your state's law, and the resort's cooperation, none of which an outside company controls ^[3].

What happens if I just stop paying my timeshare maintenance fees?

Nonpayment doesn't cancel your contract. It typically triggers late fees, collections calls, credit damage, and eventually foreclosure on the timeshare interest, which can still show up on your credit report for years. Some exit scams tell owners to stop paying, which is a major red flag, not legitimate advice.

How do I check if a timeshare exit company has lawsuits against it?

Search your state attorney general's consumer protection press releases for the company's exact legal name, and check the FTC's guidance pages. Missouri ^[1] and Washington ^[2] have both sued timeshare exit companies publicly, and those filings are searchable case examples of what red flags look like.

Is it worth paying an exit company thousands of dollars?

Often not, especially since many resorts now offer free or low-cost deed-back programs, and rescission (if you're still in the window) costs nothing but a certified letter. Reserve paid exit help for complex cases, and vet any company's complaint history and refund policy first.

Sources

1. Missouri Attorney General, press release: Attorney General Bailey Sues Timeshare Exit Companies: Missouri AG sued a timeshare exit company for allegedly taking upfront fees without delivering promised cancellations
2. Washington State Attorney General, timeshare exit company lawsuit press release: Washington AG sued timeshare exit companies for deceptive practices including false cancellation guarantees
3. Federal Trade Commission, "Thinking about Getting Out of Your Timeshare?" consumer alert: FTC warns consumers to be skeptical of guaranteed timeshare exit or resale promises and to research before paying anyone upfront
4. American Resort Development Association (ARDA), State of the Vacation Timeshare Industry: United States Study, 2023 Edition: Average timeshare purchase price and average annual maintenance fee figures for 2023
5. Legal Information Institute, 26 U.S.C. § 2518 Disclaimers: Federal rule allowing disclaimer of an inheritance if done in writing within nine months of the decedent's death
6. Legal Information Institute, 15 U.S.C. § 1666 Fair Credit Billing Act: Federal law governing credit card billing dispute rights and time limits