Last updated 2026-07-25
TL;DR
Regulators have taken action against timeshare exit companies including Reed Hein (Timeshare Exit Team, $6.5M FTC settlement) and Resort Advisory Group for upfront-fee fraud tactics. Red flags across bad actors: big upfront fees, guaranteed results, telling you to stop paying maintenance fees, and no escrow protection. Check any company against your state AG's site and the FTC's case list before signing anything.
Which timeshare exit companies has the FTC actually taken action against?
The clearest, most documented case is Reed Hein & Associates, which did business as Timeshare Exit Team. In January 2021 the FTC filed a complaint alleging the company took more than $124 million from consumers using deceptive claims that it could get owners out of their contracts, often guaranteeing results the company had no ability to deliver [1]. Reed Hein settled with the FTC in April 2021 for $6.5 million in monetary relief, and under the settlement Reed Hein and its owner were banned from telemarketing timeshare exit services [1]. The FTC's own case materials describe the company making baseless money-back guarantees. Consumers often paid thousands of dollars upfront only to have their credit damaged after Reed Hein told them to stop paying their timeshare fees while the exit was supposedly "in process" [1]. That detail matters a lot. It shows the FTC treating the stop-paying instruction itself as part of the deceptive scheme, more than a side effect. A second major action came out of Missouri. In 2017 the Missouri Attorney General sued Resort Advisory Group and related entities over alleged upfront-fee timeshare exit fraud, part of a broader pattern of state-level enforcement against this industry [2]. Multiple other state attorneys general have pursued separate cases against timeshare exit and relief companies over the past decade, though case outcomes and company names change often enough that a static list goes stale fast. The honest caveat here: naming a definitive "top 10 worst" list of active companies is genuinely hard to do responsibly. Bad actors dissolve, rebrand under new LLC names, and reopen under different marketing within months of an enforcement action. What's stable is the pattern regulators keep flagging, which is more useful to you than any single company name.
What do the worst timeshare exit companies have in common?
Across FTC and state AG cases, the same handful of tactics show up again and again. If a company you're considering does more than one of these, treat it as a serious warning sign. Big upfront fees with no escrow. Legitimate fee structures hold your money in a licensed, bonded third-party escrow account and only release it when specific, written milestones are met, not simply signing a contract. The FTC's complaint against Reed Hein detailed a company that collected large upfront payments with no such protection [1]. Guaranteed results. No company can guarantee it will get you out of a valid, binding timeshare contract. Resorts, HOAs, and lenders are not obligated to agree to anything, and outcomes depend on your specific deed, developer, and state law. The FTC's complaint against Reed Hein centered partly on "baseless" guarantee language [1]. Telling you to stop paying maintenance fees or your loan. This is maybe the single most damaging pattern regulators have documented. Stopping payment doesn't make the debt disappear. It triggers late fees, collections calls, and potential damage to your credit report, and it does nothing to actually cancel the deed. We will say this plainly: never stop paying amounts you legally owe based on an exit company's advice. High-pressure, time-limited sales pitches. "This offer expires today" tactics mirror the same pressure tactics used to sell you the timeshare in the first place. A legitimate consultation doesn't require a same-day decision. Vague or shifting company names. Several companies tied to enforcement actions operated under multiple DBAs or related entities, which made it harder for consumers to research them beforehand [1][2]. If a company's legal name doesn't match its marketing name, ask why, and look up both.
How can I check if a timeshare exit company is legitimate before I pay anything?
Start with three free lookups before you sign or pay a dollar. This takes maybe 20 minutes and it's the single highest-value thing you can do. First, search the company's exact legal name plus "attorney general" and the state it operates from. State AG consumer protection divisions post enforcement actions and consumer alerts; Missouri's case against Resort Advisory Group is a real example of what that looks like [2]. Second, check the FTC's case archive for the company name [1]. The FTC doesn't catch everyone, but a hit there is disqualifying on its own. Third, call your state's licensing board if the company claims to be a licensed timeshare transfer agent, real estate broker, or attorney. Many states require specific licensing for parties handling real property transfers, and a company that can't produce a license number when asked is telling you something. Beyond those three checks: ask for the escrow agreement in writing, ask for the company's physical business address (more than a call center), and ask how long they've operated under their current legal name. If the answer to that last one is "we're new but our team has 20 years of experience," push for specifics. Related-entity shuffling is a documented pattern in past enforcement cases [1][2]. Our timeshare exit companies guide walks through vetting any exit company in more depth, and our timeshare call list page has actual phone numbers and departments for resorts and regulators, more than exit firms.
Are timeshares scams?
Not exactly, and it's worth being precise here. The underlying product, a right to use a unit for a set period each year, is a legal contract. The problem isn't that timeshares are illegal or fake. The problem is the sales process is often aggressive and the resale market is close to worthless. Maintenance fees rise most years, frequently faster than general inflation, and special assessments can hit with little warning for roof replacements, hurricane damage, or renovations. Where things cross into scam territory is in two specific sub-markets: fraudulent timeshare resale brokers who charge upfront "marketing fees" for a sale that never happens, and exit companies that take large upfront payments and deliver nothing, as documented in the Reed Hein case [1]. Regulators have repeatedly flagged unsolicited calls offering to sell a timeshare fast for an upfront fee, since resale scams follow a similar playbook to exit scams [1][2]. So the timeshare itself is a real, if often overpriced, product. The scam risk concentrates in the secondary market around exit and resale services, which is exactly why this list exists.
How much do timeshares cost, and does that affect exit options?
| Rescission (inside window) | $0, may lose earnest deposit already paid | Days to a few weeks |
|---|---|---|
| Developer deed-back/surrender program | $0 to a few hundred dollars in fees | 2 to 6 months |
| Resale (via broker or by owner) | Broker commission, often little to no proceeds | Weeks to over a year |
| For-profit exit company | $2,000 to $8,000+ upfront, reported in FTC case filings [1] | Months, no guarantee |
| Do-it-yourself exit using guides/templates | Low fixed cost (research, forms, possibly notary/postage) | Weeks to months, depends on resort cooperation |
Purchase prices for a new timeshare interval commonly run from around $10,000 to $30,000+ for a one-week deeded or points-based interest, though luxury brand weeks can run well past that. Resale prices are a different story entirely. It's common to see comparable weeks listed for a few hundred to a few thousand dollars on resale marketplaces, reflecting a resale market where developer buybacks and organic demand are both limited. Annual maintenance fees for most resorts run somewhere in the neighborhood of $1,000 to $1,200 per interval, and these fees typically rise a few percentage points most years, sometimes more after a special assessment. Here's why the cost gap matters for exit strategy: because resale value is often near zero, a real deed-back or developer surrender program frequently costs you nothing beyond your own paperwork time, since the resort has no financial reason to fight taking back an asset with negative resale value. That's very different from a used car or a house, where the owner has real bargaining power from actual resale value. It's also exactly why some owners get talked into paying a for-profit exit company thousands of dollars for something a deed-back program might do for free. Cost comparison for context: | Path | Typical cost to you | Typical timeline |
How do you get out of a timeshare if you're still inside the rescission window?
If you just signed, check your rescission window immediately, don't wait even a few days. Every state sets its own cancellation period for timeshare purchases, and these windows are short, often measured in single-digit days from signing or from receipt of the last required disclosure document. We're not going to guess a specific day count here because it genuinely varies by state and sometimes by contract type. Florida, for example, sets a 10-day cancellation period running from the date of execution or the date the purchaser receives the last document required to be delivered, whichever is later, under Florida Statutes section 721.10 . Confirm your own state's rescission window through your state's statutes or your state AG's consumer page before you do anything else. To rescind, follow the instructions printed in your purchase contract exactly. Most states require written notice, often by certified mail with return receipt, sent to the address specified in the contract, within the exact window. Verbal cancellation over the phone is not enough in the vast majority of states, and just stopping communication is not the same as legally rescinding. Keep copies of everything: the signed contract, your written notice, the certified mail receipt, and any confirmation from the resort. If the resort doesn't refund your deposit within the timeframe your contract or state law specifies, that's when you loop in your state AG's consumer protection division. Our rescission-by-state hub breaks down what to look for state by state, and our timeshare cancellation page has a closer look at the notice-writing process itself.
How do you get out of a timeshare after the rescission window has closed?
Once rescission has passed, you're working with a valid contract, and the realistic paths narrow to a shorter list. None of them are instant, and none of them are guaranteed, no matter what any company tells you. Deed-back or surrender programs. Many major developers, including Marriott Vacation Club, Hilton Grand Vacations, and Wyndham, run their own take-back programs under names like "Ovation" or similar branded terms. These programs typically require the owner to be current on payments and fees, sometimes with a minimum number of years owned, and they often cost little or nothing beyond an administrative fee. Resale. Realistic expectations matter enormously here. Because resale demand is thin and developers can sell new intervals directly, resale prices for used timeshares are often a small fraction of the original purchase price, and some listings simply don't sell at any price. If you go this route, use a broker who is a member of a recognized industry association and never pay a large upfront "marketing fee" before a sale closes. Gifting or donating. Some owners give the timeshare away, sometimes even paying the recipient's closing costs, just to stop the fee obligation. This only works if the receiving party is willing and the resort allows the transfer. Working directly with the resort on a hardship basis. Some resorts will negotiate a deed-back for owners facing financial hardship or estate situations, especially for older, harder-to-resell inventory. We don't contact resorts or developers on a reader's behalf, and no legitimate source can promise an outcome before reviewing your actual deed and contract.
How do you sell a timeshare, and is it realistic to expect a profit?
Expect to lose money, not make it. That's the honest starting point. Timeshares are not typically an appreciating asset, and the resale market reflects that reality clearly. If you want to try selling: get your deed, maintenance fee statement, and any points chart together first. List with a broker who charges a commission on sale rather than an upfront fee, or list yourself on established owner-to-owner resale marketplaces. Price near or below what similar units are actually selling for right now, not what you paid or what a broker "thinks it's worth." Avoid any company that cold-calls you claiming they have a "buyer already interested" and just need an upfront fee to process the sale. That's one of the resale scam patterns regulators have specifically named in enforcement actions [1][2]. Real buyers don't require a seller to prepay marketing costs before a purchase is final. If your unit genuinely won't sell, and for a large share of older or less desirable weeks it won't, a deed-back or surrender program is usually the more realistic path than continuing to chase a resale sale that may never close.
What should I do if I inherited a timeshare I don't want?
First, find out if you're actually obligated to keep it. In many states, an heir can disclaim (formally refuse) an inheritance, including a timeshare interest, within a specific timeframe after the original owner's death, though the exact procedure is governed by your state's probate code and should be confirmed with an estate attorney or your state courts' self-help resources. If the estate has already been settled and the deed has transferred into your name, you're now the legal owner with the same options as anyone else: deed-back program, resale, or negotiated surrender. Some resorts have specific inherited-property or hardship deed-back paths, so it's worth asking directly. Don't pay a large upfront fee to a company promising to "remove you from an inherited timeshare" quickly. The same upfront-fee red flags apply whether you bought the timeshare or inherited it.
What's a reasonable, safe way to start the exit process myself?
Start by pulling your actual documents: the deed, the original purchase contract, your most recent maintenance fee statement, and any HOA or club rules governing your resort or points system. You genuinely cannot make a good decision about deed-back eligibility, resale value, or contract terms without these in hand. Next, check whether your specific resort or developer runs its own surrender or deed-back program. A phone call to the resort's owner services line (not a third-party exit company) can usually confirm this in one call, and it costs nothing to ask. If you decide a for-profit exit company or an attorney is the right path for your situation, get the fee structure and escrow terms in writing before paying anything, and verify the company against your state AG's site and the FTC's case archive first [1][2]. This is exactly the gap our $149 one-time Timeshare Exit Kit is built to close: a structured set of documents, letter templates, and a state-specific process walkthrough so you can pursue rescission, deed-back requests, or resale prep yourself, without paying a company thousands of dollars upfront or guessing at what a legitimate escrow arrangement should look like. It's not legal representation and it doesn't guarantee an exit outcome, since no honest product can promise that. It's a toolkit for doing the legwork correctly.
When should I actually hire an attorney instead of a self-help approach or an exit company?
Hire a licensed attorney in your state when the situation involves active litigation (the resort or a collections agency has already sued you), a foreclosure notice on the timeshare, a complex multi-owner estate dispute, or a contract with unusual terms you genuinely can't parse, like a perpetual points obligation tied to a trust structure. For straightforward situations, a rescission inside the window, a deed-back request to a developer with an established program, or basic resale, a licensed attorney is often unnecessary and the self-help path is both cheaper and just as effective. Some state bar associations offer lawyer referral services with set consultation fee caps, which is a reasonable way to get a second opinion without committing to full representation. Whatever path you choose, avoid signing a power of attorney over to any exit company that asks for one as a condition of "starting your case." That level of control, combined with a large upfront fee, is one of the clearer red flags across the enforcement cases regulators have pursued [1][2].
Where can I file a complaint if I've already been scammed by an exit company?
File with the FTC first, through its consumer complaint system, since complaint data feeds directly into the agency's enforcement priorities and past cases like Reed Hein grew out of accumulated consumer complaints [1]. Then file a separate complaint with your state attorney general's consumer protection division; state AGs have brought their own independent cases, like Missouri's action against Resort Advisory Group, sometimes using consumer complaint volume as the trigger for opening an investigation [2]. If you paid by credit card, dispute the charge with your card issuer under the Fair Credit Billing Act's error-resolution provisions [3], and do this as soon as you realize something is wrong, since disputes have their own time limits tied to your billing statement date. Keep every document: the contract you signed with the exit company, proof of payment, any emails or texts, and notes on every phone call including dates and names. This paper trail is what turns an individual complaint into part of a larger case regulators can act on.
Frequently asked questions
How do I get out of a timeshare?
If you're inside your state's rescission window, send written cancellation notice exactly as your contract instructs, usually by certified mail. After that window closes, your realistic options are a developer deed-back or surrender program, resale (often at a loss), or gifting the unit to a willing recipient. Confirm your state's rescission window and never pay a large upfront fee before verifying any company with your state AG and the FTC.
How do you get out of a timeshare after buying it years ago?
Contact the resort directly and ask if they run a deed-back or surrender program, which many major developers do, sometimes at little or no cost if you're current on fees. If that's not available, consider resale through a commission-based broker, or a self-help approach using state-specific letter templates. Avoid companies demanding thousands upfront with guaranteed results.
How to sell a timeshare without getting scammed?
Use a broker who takes a commission at closing, never one who charges a large upfront "marketing fee." Price the unit near actual recent resale comps, not your original purchase price. Be suspicious of unsolicited calls claiming a buyer is already lined up, a pattern regulators have flagged repeatedly in resale scam cases.
Are timeshares scams?
The timeshare product itself is a legal contract, not inherently a scam, but sales tactics are often aggressive and resale value is typically very low. The scam risk concentrates in secondary markets: resale brokers charging upfront fees for sales that never happen, and exit companies taking large upfront payments and delivering nothing, as in the FTC's case against Reed Hein.
How much do timeshares cost to buy?
New timeshare intervals commonly cost $10,000 to $30,000 or more for a one-week deeded or points-based interest, with luxury resorts running higher. Annual maintenance fees average roughly $1,000 to $1,200 per interval, and fees typically increase most years.
How much are timeshares worth on the resale market?
Often far less than the original purchase price, sometimes just a few hundred dollars, and some units don't sell at any price because resale demand is thin and developers compete by selling new inventory directly. This low resale value is actually why deed-back programs are often more realistic than trying to sell.
Is Timeshare Exit Team (Reed Hein) legitimate?
No. The FTC sued Reed Hein & Associates, doing business as Timeshare Exit Team, in January 2021, alleging it took over $124 million from consumers using deceptive guarantee claims. The company settled for $6.5 million in April 2021 and its owner was banned from telemarketing timeshare exit services.
What are the warning signs of a timeshare exit scam?
Large upfront fees with no independent escrow, guaranteed results, pressure to sign same-day, instructions to stop paying your maintenance fees or loan, and a company operating under a name that doesn't match its legal entity. If a company shows two or more of these signs, stop and verify it with your state AG and the FTC before proceeding.
Should I stop paying my timeshare maintenance fees to force an exit?
No. Stopping payment doesn't cancel your deed and can trigger late fees, collections, and credit damage, and some exit companies that told consumers to do this were later targeted in FTC enforcement actions. Keep paying what you legally owe while you pursue rescission, a deed-back program, or resale through a legitimate path.
What is a timeshare deed-back program?
A deed-back or surrender program lets an owner return the deed to the resort developer, often at little or no cost, typically requiring the owner be current on fees. Major brands including Marriott Vacation Club, Hilton Grand Vacations, and Wyndham have run branded versions of these programs, though availability and terms vary and should be confirmed directly with the resort.
Can I get out of a timeshare I inherited?
If the estate hasn't settled yet, an heir may be able to formally disclaim the inheritance under state probate law within a specific timeframe, best confirmed with an estate attorney. If the deed has already transferred to you, you have the same options as any owner: deed-back program, resale, or negotiated surrender with the resort.
How long does it take to get out of a timeshare?
Rescission, if you're still inside your state's window, can take days to a few weeks. Developer deed-back programs commonly take 2 to 6 months. Resale can take anywhere from weeks to over a year, and there's no guaranteed timeline for any path since outcomes depend on your specific resort and contract.
Sources
- Federal Trade Commission v. Reed Hein & Associates, LLC, Case No. 2:19-cv-00074 (W.D. Wash.), stipulated final order: FTC's $6.5 million settlement with Reed Hein/Timeshare Exit Team and the telemarketing ban on its owner
- Missouri Attorney General, press release on Resort Advisory Group lawsuit (2017): State-level enforcement action targeting an alleged upfront-fee timeshare exit scheme
- Fair Credit Billing Act error-resolution provisions, 15 U.S.C. § 1666: Consumer right to dispute a credit card charge for services not delivered as billed
- Consumer Financial Protection Bureau, "What is a timeshare and what should I know before purchasing one?": Consumer guidance on timeshare contract terms, fees, and resale value considerations
- Federal Trade Commission, Legal Library case search results for timeshare-related enforcement actions: FTC's ongoing enforcement record against timeshare resale and exit companies using upfront-fee tactics
- Florida Statutes section 721.10, Timeshare Plans: Cancellation: Example of a state-specific statutory rescission period (10 days) for timeshare purchase contracts