Timeshare maintenance fee scams: what to watch for in 2025

Last updated 2026-07-26

What exactly is a timeshare maintenance fee scam?

A timeshare maintenance fee scam is any pitch that uses your frustration over rising annual fees to get you to pay money upfront for a service that never happens. It is not the maintenance fee itself, even when the fee feels outrageous. The scam is the person on the phone who says they can freeze your fees, get you a refund, or erase your contract for a fee paid today. The average annual timeshare maintenance fee was $1,285 in 2023, according to the American Resort Development Association's owner survey data cited in ARDA's industry reporting. Fees typically rise 3% to 5% a year, and special assessments for roof repairs, hurricane damage, or renovations can add thousands more in a single year. That real financial pain is exactly what scammers exploit. The Federal Trade Commission has been blunt about the pattern in its own consumer guidance on timeshare resales, warning owners not to trust guaranteed sale or exit promises from companies that ask for money up front ^[1]. If a caller mentions your maintenance fee bill specifically and then asks for money before doing anything, that's the scam script, not a legitimate service. Three scam variants show up over and over: the fake fee-reduction service, the advance-fee resale scam, and the fake class-action or refund scam claiming you're owed money back on fees you already paid.

Are timeshares scams, or is it just the exit industry that's the problem?

Timeshares themselves are legal products, not scams, in the sense that the underlying contract is enforceable and the vacation product is real. What generates the scam complaints is almost always the sales pressure at the point of purchase, or the secondary industry of "exit" and "resale" companies that spring up around unhappy owners. State and federal regulators have pursued companies that took upfront fees from timeshare owners and delivered nothing. The FTC has brought civil actions against timeshare exit and resale operations under Section 5 of the FTC Act for deceptive practices, including cases alleging false promises to cancel contracts or guarantee resales. That's not a one-off. State attorneys general in Florida, Tennessee, and elsewhere have brought similar actions against companies claiming they could guarantee an exit. So the honest answer is: timeshares are a bad value for most buyers (resale prices often run 1% to 10% of what people paid at retail), and the sales process is frequently deceptive. But calling the product itself a "scam" misses where the actual fraud happens, which is in the secondary market of fee-reduction and exit companies preying on owners who already regret buying.

How much do timeshares actually cost, including hidden fees?

Purchase price (one-time)	$20,000	-	-
Annual maintenance fee	$1,285	~$1,564	~$1,902
Cumulative fees paid	$1,285	~$6,900	~$15,400	That cumulative fee column is the number people forget when they buy. Add a special assessment or two and a 10-year ownership can easily cost as much in fees as the purchase price itself.

The purchase price is only the entry fee. A new timeshare interval typically costs between $16,000 and $25,000 at retail, according to ARDA's average buyer survey figures reported across recent years, though luxury brand weeks can run well over $40,000. That number does not include what you pay every year afterward. Annual maintenance fees averaged $1,285 in 2023 and are contractually allowed to rise each year, usually tied to the resort's actual operating costs, insurance, and reserve fund contributions. On top of that baseline fee, special assessments hit owners when something big breaks. Post-hurricane assessments at Gulf Coast and Caribbean resorts have run $1,000 to $3,000 per interval in a single year in reported owner accounts, though there's no single national dataset tracking every special assessment, so treat any specific figure you hear as resort-specific, not universal. Here's a rough cost picture over a 10-year ownership period, using ARDA's reported averages as the baseline and assuming a conservative 4% annual fee increase: | Cost type | Year 1 | Year 5 | Year 10 |

How do you tell a legitimate fee increase from a scam pitch?

A legitimate fee increase comes from your resort's homeowners association or management company, references your specific contract and unit, and is disclosed in board minutes or an annual assessment notice, often with a right to request the underlying budget. A scam pitch comes from a company you didn't contact, references your maintenance fee as bait ("we know your fees just went up"), and asks for money before doing any verifiable work. Check these things before you engage with anyone claiming they can fix your fees or get you out of your contract: First, is the company asking for payment before delivering results? Legitimate attorneys and real estate transactions typically bill after work is done or hold funds in escrow. Second, can you find the company registered with your state attorney general's consumer protection office, and does it have unresolved complaints? Third, does the pitch include a guarantee? No one can guarantee a resort will accept a deed-back or that a resale will close, because those decisions belong to the resort or a buyer, not the exit company. If you're unsure whether a caller is legitimate, hang up and call your resort's owner services line directly using the number on your last billing statement, not a number the caller gave you.

How to get out of a timeshare without falling for a scam

There is no single fastest way to get out of a timeshare, but there is a real order of operations that avoids scams: check rescission first, then deed-back, then resale, then a paid exit service only as a last resort with real vetting. If you bought recently, confirm your state's rescission window immediately. Every state sets its own cancellation period for timeshare purchases, ranging roughly from 3 to 15 days depending on the state, and it starts from the day you sign or the day you receive all required disclosure documents, whichever the state's statute specifies. Missing this window by even a day usually means you're stuck with the contract's normal terms. For the exact process by state, see how to get out of a timeshare. If the rescission window has closed, check whether your resort offers a deed-back or surrender program. Many major developers, including Marriott Vacation Club, Hilton Grand Vacations, and Wyndham, run some version of a deed-back or "exit" program for owners current on fees, sometimes at no cost beyond a transfer fee. These programs are not guaranteed and eligibility varies by resort and by how current you are on payments. If deed-back isn't available, resale is next, though expectations need to be realistic: most timeshare resales close for a small fraction of the original purchase price, and some weeks simply don't sell at any price because the maintenance fee makes them a liability rather than an asset. For a walkthrough of listing and pricing realistically, see how to sell a timeshare. Only after those options are exhausted should you consider a paid exit company, and even then, vet it hard using your state AG's complaint database and the Better Business Bureau before paying anything upfront.

How do you get rid of a timeshare if the resort won't take it back?

If deed-back isn't offered or your resort denies your request, your remaining paths are resale, donation, or working through a licensed attorney on a limited scope of work, such as reviewing your contract for a valid legal exit (fraud in the sale, statute violations, etc.). None of these are guaranteed to work quickly, and none of them justify paying a large upfront fee to a company that won't specify what work it's actually doing. Some owners try to simply stop paying fees, hoping the resort will foreclose and release them. Don't do this without understanding the consequences first: unpaid maintenance fees usually accrue interest and late penalties, the resort can send the debt to collections, and it can hit your credit report. Foreclosure on a timeshare deed is possible in many states, but it can take a long time, and in the meantime you owe the money contractually. This article isn't telling you to stop paying what you owe. Talk to a real estate attorney in your state before making that call, and understand your specific contract's default and foreclosure terms first. Donation to a charity or transfer to a willing family member is sometimes possible, but many charities now refuse timeshare donations because they inherit the maintenance fee obligation, which makes them a net cost, not a gift. For a broader look at exit company track records before you sign with anyone, see timeshare exit companies.

How to sell a timeshare without getting scammed in the process

Selling a timeshare yourself, without a paid "guaranteed sale" company, is usually the safer path, because the scam risk concentrates almost entirely in companies that charge large upfront fees for a resale that may never happen. List on established resale marketplaces (RedWeek, Timeshare Users Group, and eBay's timeshare category are among the more established venues) and price it based on completed sales for your same resort and season, not on what you paid. Be ready for the price to be low. Recent resale data compiled by ARDA and industry resale trackers regularly show many timeshare intervals reselling for $1 to a few thousand dollars, especially at less desirable resorts, because the ongoing maintenance fee liability suppresses buyer demand far more than the vacation value adds to it. Never pay an upfront "closing fee," "transfer tax," or "buyer processing fee" to a company that contacted you out of the blue claiming they have a buyer lined up. This is one of the most common advance-fee scams in the timeshare space: a caller says a buyer, sometimes a foreign buyer, is ready to purchase your week at a suspiciously good price, but you need to wire a fee first to cover taxes or closing costs. The buyer doesn't exist. Regulators have pursued multiple actions against resale companies operating exactly this scheme. If you do use a licensed real estate agent or broker for the resale, check their state real estate license number directly with your state's real estate licensing board, not through a link the company sent you.

What does a real timeshare exit or fee-reduction service actually cost?

Legitimate paid help for a timeshare exit generally falls into two categories: flat-fee document and negotiation support, and hourly attorney work. Reported market pricing for exit company packages has ranged widely, commonly $2,000 to $10,000 or more for full-service "we'll handle everything" packages, and that wide range itself is a warning sign, because there's no standard service being sold across the industry. A self-directed approach, using your own research plus a template-based process for deed-back requests, rescission letters, and resale listings, avoids most of that cost. That's the gap a product like ExitHonest's $149 one-time Exit Kit is built to fill: structured letters, checklists, and state-specific guidance for the deed-back and rescission process, without a company claiming it will contact the resort on your behalf or guaranteeing a result. Compare that to a $6,000 exit company retainer, and the math on trying the low-cost, self-directed route first is straightforward. Whatever you choose, get every fee in writing before you pay anything, ask what happens if the deed-back or cancellation is denied, and confirm in writing whether any part of the fee is refundable if the company doesn't deliver.

How do I check if a company is a scam before I pay them?

Search the exact company name plus "complaint" on your state attorney general's website and on the FTC's complaint reporting system before sending any money. The FTC operates ReportFraud.ftc.gov specifically for consumers to file and search fraud reports, and many state AGs, including Florida's, maintain their own consumer complaint portals with searchable enforcement history ^[2]. Ask for the company's business license number and check it against your state's business registration database. A company operating nationally should be registered somewhere verifiable, and if it dodges the question or gives you a name that doesn't match its registration, that's a real signal. Read the contract before signing anything, specifically the refund policy. If the refund policy has conditions so vague that no outcome would trigger a refund ("refund available if resort does not accept transfer within a reasonable timeframe as determined by us"), that's a company writing itself an escape hatch, not making you a promise. Finally, check how they found you. If you never contacted them and they called referencing your maintenance fee bill or your ownership specifically, ask how they got that information. Some of these lead lists come from data broker sales, but some come from resorts' own customer databases being resold improperly, which is worth reporting to your state AG regardless of whether you use the company.

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

File a complaint with your state attorney general's consumer protection division and with the FTC through ReportFraud.ftc.gov immediately, even if you think it's too late to get your money back. These complaints build the case files that lead to enforcement actions against exit scam operators, and your report matters even if it doesn't personally recover your fee. If you paid by credit card, contact your card issuer about a chargeback. Credit card disputes for services not rendered have real time limits, usually 60 days from the statement on which the charge first appeared under the Fair Credit Billing Act, so don't wait ^[3]. If you paid by wire transfer or gift card, recovery is much harder; those payment methods are popular with scammers precisely because they're difficult to reverse. Check whether your state has specific timeshare exit company regulation. Tennessee, for example, licenses time-share salespersons and related businesses under its Time-Share Act, codified at Tennessee Code Annotated Title 66, Chapter 32 , and operating without required licensing is itself a violation you can report. Don't pay a second company that promises to "recover your losses" from the first scam. This is a well-documented follow-up scam: after you've been burned once, a second caller claims to specialize in getting your money back from exit scams, for an upfront fee. It's the same scam wearing a different hat.

How can I protect myself before I ever get the first call?

Get on your resort's official communication list and set your account to flag any real assessment notices, so you can tell the difference between a real fee letter and a scam email designed to look like one. Real assessment notices come from your HOA or management company, reference your account number, and typically arrive by mail with board meeting minutes or a budget summary attached, more than an email demanding urgent payment. Be skeptical of any inbound call about your timeshare, period. Owner services departments at major resorts generally don't cold-call you offering to reduce your fees; that's not how their business works, since they collect the fees, they don't have an incentive to lower them unprompted. If you get a call like that, it's very likely a scam operation that bought or scraped a timeshare owner list. Keep your contract and closing documents somewhere you can find them fast. If you ever do need to pursue rescission, a deed-back, or a legal challenge, having your original purchase date, contract terms, and disclosure documents on hand saves real time and helps you evaluate any offer against your actual legal position rather than a stranger's claims about it. For a running list of numbers and companies people have reported issues with, see the timeshare call list resource, and cross-check anything you're hearing against how do you get out of a timeshare before you commit money to any single path.

Frequently asked questions

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

Check your state's rescission window first if you bought recently (it may still be open). If it's closed, request your resort's deed-back or surrender program directly; several major brands offer this at low or no cost for owners current on fees. Resale is next. A paid exit company should be your last option, only after vetting it against your state AG's complaint records.

Are timeshares scams?

The timeshare product itself is legal and enforceable, so it isn't a scam in the legal sense, but the sales process is often deceptive and the resale value is nearly always far below the purchase price. The real scam risk concentrates in the secondary market: exit and resale companies that charge upfront fees and deliver nothing, a pattern regulators have documented in multiple enforcement actions.

How much is a timeshare, on average?

New timeshare intervals typically cost $16,000 to $25,000 at retail purchase, according to ARDA owner survey data, with luxury properties running higher. On top of that, annual maintenance fees averaged $1,285 in 2023 and generally rise 3% to 5% a year, plus occasional special assessments of $1,000 or more after storm damage or major repairs.

How much do timeshares cost over the long run, including fees?

Over 10 years, assuming a 4% annual fee increase on the 2023 average of $1,285, an owner pays roughly $15,000 to $16,000 in cumulative maintenance fees alone, separate from the original purchase price. Special assessments can add thousands more in any given year, so total ownership cost is frequently underestimated at the point of sale.

How to sell a timeshare without getting scammed?

List it yourself on an established resale marketplace like RedWeek or the Timeshare Users Group, price it based on recent comparable sales (not what you paid), and never pay an upfront fee to a caller claiming they already have a buyer lined up. That advance-fee pitch is one of the most common timeshare resale scams reported to regulators.

How do you get rid of a timeshare if no one will buy it?

If resale isn't working, ask your resort about a deed-back or surrender program, which some developers offer for owners current on fees. If that's unavailable, consult a real estate attorney in your state about your specific contract's exit options. Don't simply stop paying; unpaid fees can go to collections and affect your credit, and some states allow foreclosure on the deed.

What is a timeshare maintenance fee scam, specifically?

It's any offer that uses your maintenance fee frustration to get you to pay upfront for a fee reduction, cancellation, or resale that doesn't materialize. The FTC warns owners not to trust resale and exit companies that guarantee a sale or cancellation, since no company can guarantee a resort or buyer's decision.

How do I verify a timeshare exit company before paying them?

Search the company name with 'complaint' on your state attorney general's website and on the FTC's ReportFraud.ftc.gov database. Ask for their business license number and verify it against your state's registration database. Get the refund policy in writing before paying, and be wary of vague conditions that make a refund essentially unobtainable.

Can maintenance fees legally keep increasing every year?

Yes, if your contract allows it, which most do. Fee increases tied to actual operating costs, insurance, and reserve contributions are standard and legal; ARDA reports average fees have risen from year to year. What's not legal is a third party charging you money to falsely promise they can freeze or reverse a fee increase they have no authority over.

What happens if I stop paying my timeshare maintenance fees?

Unpaid fees typically accrue interest and late penalties, the resort can send the balance to collections, and in many states the resort can foreclose on the deed, similar to a property lien. This can also affect your credit report. Talk to a real estate attorney about your specific contract's default terms before deciding not to pay.

How do you get out of a timeshare you inherited?

You're not automatically obligated to keep an inherited timeshare, but you generally must formally disclaim or reject the inheritance through the probate process within your state's required timeframe, or the deed and its fee obligations transfer to you by default. Talk to the estate's probate attorney before assuming you can simply ignore the paperwork.

Is a free timeshare exit seminar a scam?

Be cautious. Free seminars offering to help you exit your timeshare often use the same high-pressure sales tactics as the original timeshare sales pitch, sometimes from the same sales organizations rebranded as 'exit specialists.' Ask what they charge, when, and for what specific deliverable before attending, and never sign anything or pay on the spot.

Sources

1. Federal Trade Commission, FTC Act Section 5 enforcement actions: FTC enforcement authority over deceptive practices by timeshare exit and resale companies
2. Federal Trade Commission, Fair Credit Billing Act consumer guidance: 60-day timeframe for disputing credit card charges for services not rendered
3. Tennessee Code Annotated, Title 66, Chapter 32 (Time-Share Act): Tennessee requires licensing for timeshare salespersons and related businesses operating in the state
4. Federal Trade Commission: The Telemarketing Sales Rule prohibits companies from charging upfront fees for debt relief-like services obtained via telemarketing, a rule referenced in cases against timeshare exit companies.
5. Consumer Financial Protection Bureau: The CFPB explains what a timeshare is and how maintenance fees and special assessments work as ongoing costs of ownership.
6. U.S. Department of Justice: Federal prosecutors have charged and sentenced timeshare exit company owners for defrauding consumers who paid upfront fees for services never rendered.
7. Florida Attorney General: State attorneys general have issued consumer guidance specifically warning about timeshare resale and exit company scams.
8. Better Business Bureau: The BBB has documented patterns of timeshare exit scams and advises consumers on how to vet exit companies before paying any fees.