Last updated 2026-07-24
TL;DR
The worst timeshare exit companies charge large upfront fees, promise they can cancel any contract, and tell you to stop paying maintenance fees or your mortgage. The FTC has brought multiple enforcement actions against firms doing exactly this, some involving tens of millions of dollars taken from owners. Check any company with your state attorney general and the Better Business Bureau before you sign anything or pay a cent.
What makes a timeshare exit company one of the worst?
The worst timeshare exit companies share a small set of habits, and once you know them, they're easy to spot. Big upfront fee, paid before any work happens. A promise that they will get you out no matter what, regardless of your contract terms or your state's law. Pressure to stop paying your maintenance fees or mortgage payment while they 'work on it.' Vague answers about who actually does the legal work, if anyone does. The Federal Trade Commission has described this pattern directly. In its case against Reed Hein & Associates LLC (doing business as Timeshare Exit Team), the FTC alleged the company "charged consumers thousands of dollars in up-front fees with promises that it would legally cancel their timeshare contracts," and that many consumers ended up with damaged credit and continued maintenance fee obligations instead [1]. That is not a one-off complaint. It is a pattern regulators keep finding across many companies with different names but the same script. Another marker of the worst operators: they change names often. When state attorneys general or the FTC catch up to a brand, the same sales team sometimes reopens under a new LLC within months. If a company's history is hard to trace, that itself is a red flag worth taking seriously. None of this means every exit company is a scam. Some do legitimate work, mostly negotiation, paperwork help, or pointing you toward legal deed-back or rescission options. But the ratio of bad actors to good ones in this industry has been bad enough, for long enough, that skepticism is the right default posture.
Are timeshares scams?
The timeshare product itself is usually legal, though it's often a bad financial deal. What crosses into scam territory more often is the exit side of the industry, not the original sale. Developers disclose fees and rules in contracts that are technically compliant with state law, even when the value proposition is weak and fees rise every year. Where things clearly become a scam: a company takes your money promising to cancel a valid contract, does no real work, and disappears or stalls indefinitely. The FTC's 2021 case against Reed Hein & Associates LLC (Timeshare Exit Team) resulted in a settlement requiring the company and its owner to pay $17.7 million, which the FTC used to refund consumers who had paid for services that did not deliver the promised cancellation [1]. That is a scam by any normal definition of the word, regardless of whether the original timeshare purchase was legal. So the honest answer is: timeshares aren't inherently scams, but the exit industry built around them is full of scams. Your job is to tell the difference between a company doing real legal or negotiation work and one just taking a fee and stalling.
How do you get out of a timeshare?
There are basically four real paths out of a timeshare, and none of them involve paying a stranger $5,000 upfront with a promise attached. First, rescission. Every state gives new timeshare buyers a window to cancel penalty-free, no reason needed. This window is short, often just a matter of days, and it varies by state. If you're still inside it, this is by far the fastest and cheapest exit. Check your state's rescission window rules directly, because deadlines and required delivery methods (certified mail, specific language) differ from state to state. Second, deed-back or surrender programs. Many developers now run their own exit programs (Marriott Vacation Club's Exit Program and Diamond Resorts' Transitions program are examples) that let owners hand the deed back, sometimes for a fee, sometimes free, if the account is current and the resort wants the inventory back. This is worth asking about before paying any third party. Third, resale. It rarely recovers what you paid, and many timeshares sell for $1 on the resale market or don't sell at all, but it's a legitimate option if the resort allows transfer and there's any demand for your specific resort and week. Fourth, professional help: an actual real estate attorney licensed in the state where the timeshare sits, or a document preparation service that helps you build your own file (demand letters, contract review checklists, rescission notices). This is different from a company promising to "get you out" for a huge fee. See our breakdown of timeshare exit companies and how to evaluate them before signing anything.
How much does a timeshare cost, and why does that matter for exit scams?
The average timeshare purchase price was about $23,940 in 2023, according to the American Resort Development Association's owner survey data, though prices range widely from a few thousand dollars for older weeks-based units to $40,000+ for newer points-based systems at big-name resorts. Annual maintenance fees averaged around $1,205 in that same ARDA data, and those fees climb most years, sometimes sharply after a special assessment for storm damage or renovations. This matters for the exit scam conversation because of how these companies price their services. The worst exit companies often charge fees roughly proportional to what they think you paid or what they think you're desperate to escape, sometimes $3,000 to $10,000 or more, paid upfront, before any cancellation happens. If your original purchase was expensive, expect the scam pitch to be expensive too. The math should bother you: they are asking you to spend thousands more, with no guaranteed outcome, to escape a product that already cost you thousands. A legitimate self-help path, using your state's rescission right (if you're still inside the window) or your own attorney for document review, generally costs far less than what exit companies charge, because you're not paying for a promise nobody can actually keep.
How can I check if an exit company is legitimate before I pay them?
Do these checks before paying anyone, not after. First, search the company name plus your state attorney general's consumer protection page. Many state AGs (Washington, Missouri, and others have been active here) publish specific warnings or enforcement actions against named timeshare exit companies. Washington's attorney general, for instance, sued Reed Hein & Associates (Timeshare Exit Team) in state court in 2019 over similar allegations before the federal case resolved [2]. Second, check the FTC's press release archive at ftc.gov for the company name or its known aliases [3]. The FTC has sued multiple exit companies over the past decade, and their case pages describe exactly what the fraud looked like, which is useful even if the specific company you're checking isn't listed. Third, check the Better Business Bureau profile, but read the actual complaint text, more than the letter grade. Look for a pattern of "paid upfront, no results, can't reach anyone" complaints. Fourth, ask for the name and bar number of any attorney supposedly handling your file, and verify that attorney is licensed in the state where your timeshare property sits. A real estate transaction generally needs an attorney licensed where the property is, not wherever the exit company's call center happens to be. Fifth, never pay 100% upfront. Some legitimate document-preparation and self-help services charge a flat, disclosed one-time fee for a defined deliverable (a demand letter template, a rescission notice, a file review checklist) rather than an open-ended promise to "get you out." Know exactly what you're buying before you buy it.
What are the biggest red flags in an exit company's sales pitch?
If you hear any of these, stop and get a second opinion before signing anything. "We can get you out of your timeshare, no matter what." No legitimate company can promise a legal outcome on a contract they haven't even read yet, especially over the phone during a first call. "Stop paying your maintenance fees, we'll handle it." This is one of the most damaging pieces of advice in the entire industry. Stopping payment on a valid obligation can trigger late fees, collections, and credit damage, and it does not make the underlying contract disappear. Never stop paying amounts you legally owe based on an exit company's say-so. "We need the full fee upfront, today, to lock in this rate." Urgency plus upfront payment is the classic combination behind nearly every FTC case in this space, including the Timeshare Exit Team action cited above [1]. "We work with a law firm" (but they won't name it, or the attorney has no findable bar record). Ask directly: what state is the attorney licensed in, and can I get their bar number? "Your timeshare is a security" or other legal theories used to justify big fees for exotic strategies. Timeshares are almost never classified as securities, and if someone pitches this, treat it as a warning sign, not a clever loophole.
What happens if I already paid an exit company and got nothing?
You have a few real options, though outcomes vary and there are no guarantees on any of them. File a complaint with the FTC at reportfraud.ftc.gov and with your state attorney general's consumer protection division. These complaints don't get you an individual refund by themselves, but they build the case files that led to actions like the one described above, and mass complaints can trigger investigations. If you paid by credit card, look into a chargeback with your card issuer, especially if it's been under 60 to 120 days depending on your card network's rules, or if the company failed to deliver the service they promised in writing. Check whether you were part of any class action or FTC restitution fund. The Timeshare Exit Team settlement, for one, set aside $17.7 million for consumer refunds administered by the FTC [1]. A search of the company name plus "class action" or "restitution" is worth doing periodically. Don't pay a second company promising to recover the money the first company took. This is a known follow-up scam targeting people who already lost money once.
How do I sell a timeshare myself instead of using an exit company?
If you're past your rescission window and the resort has no deed-back program, resale is worth trying before you pay anyone for an "exit." List it honestly and cheaply. Timeshare resale marketplaces (RedWeek and the Timeshare Users Group are two commonly used ones) let owners list directly, often for a modest listing fee rather than a percentage-based commission. Price realistically: most resale timeshares sell for a small fraction of the original purchase price, and plenty list for $1 just to get out of the maintenance fee obligation and transfer costs. Never pay a large upfront fee to a resale broker who claims to have a "buyer already waiting." This is one of the oldest timeshare scams around, sometimes called the "resale recovery" scam: a company calls claiming a buyer wants your unit, but you need to pay a transfer fee, tax, or closing cost first. There is no buyer. Check your contract and your state's transfer rules before listing. Some resorts have right-of-first-refusal clauses or require developer approval for any transfer, and skipping that step can void a sale after the fact.
How is deed-back different from using an exit company?
A deed-back (sometimes called a surrender program) is when the developer or HOA takes the deed back directly from you, canceling your ownership and, going forward, your maintenance fee obligation. It's different from an exit company because you're dealing straight with the entity that issued the timeshare, not a third party charging a service fee to negotiate on your behalf. Many major developers run these: Marriott Vacation Club, Diamond Resorts (now part of Hilton Grand Vacations), Bluegreen, and Wyndham have all had some version of a deed-back or exit program at various points, though availability, eligibility rules, and fees change over time and aren't guaranteed to exist for every resort or every year. Some are free if your account is current; some involve a processing fee. The general eligibility ask is usually: no back-owed maintenance fees, no existing mortgage balance on the timeshare, and sometimes a minimum ownership period. Call the resort's owner services line directly and ask if they currently have a deed-back or surrender program, rather than assuming a third-party exit company is your only route. For more on this path, see our guide to how to get out of a timeshare.
What's a fair price to pay for legitimate exit help?
There's no single right number, because the right amount of help depends on how complicated your situation is. But a few benchmarks are useful. Rescission, if you're inside the window, should cost you close to nothing beyond postage for certified mail, because it's a right guaranteed by state law that you can exercise yourself with a correctly worded letter. A document-preparation service that helps you build a rescission letter, a deed-back request package, or a file of contract review checklists for a flat one-time fee is a fundamentally different product than a company promising to negotiate your exit for thousands of dollars. This is the category our own $149 one-time Timeshare Exit Kit fits into: a flat fee for tools and templates, not a promised outcome, and not a promise to contact the resort on your behalf. An actual real estate attorney billing hourly for contract review and negotiation might run anywhere from a few hundred to a couple thousand dollars depending on complexity and your local market rates, which is often still less than what many exit companies charge upfront for an unguaranteed outcome. Anything in the $3,000 to $10,000+ range, demanded upfront, with a promise of success attached, should get the maximum amount of scrutiny before you pay it.
How do I compare timeshare exit companies before choosing one?
| Factor | Red flag | Better sign | |
|---|---|---|---|
| Fee structure | Full fee upfront, no milestones | Partial payments tied to completed steps, or flat disclosed fee for a defined deliverable | |
| Promises | "We'll get you out, no matter what" | No promised outcome, clear description of what service is actually provided | |
| Advice on payments | Tells you to stop paying maintenance fees or mortgage | Never advises you to stop paying amounts you legally owe | |
| Attorney involvement | Vague, won't name attorney or state of licensure | Names attorney, bar number, and licensing state, verifiable online | |
| Company history | New LLC name, no traceable track record | Findable BBB profile, findable AG or FTC history (or lack of complaints) | |
| Contact with resort | Claims to contact resort/developer directly on your behalf with no paperwork shown | Provides you documents and lets you see or send them yourself | Run any company through this table before signing. If two or more boxes land in the red flag column, walk away. See our full list of things to check in timeshare exit companies and how to vet them, and our timeshare call list for who's actually worth calling first (your state AG, the resort's owner services line, a licensed local attorney) before you call an exit company at all. |
Frequently asked questions
How do I get out of a timeshare?
Check your rescission window first (every state gives new buyers a short cancellation right). If that's passed, ask the resort directly about a deed-back or surrender program, try resale through a low-fee marketplace, or consult a real estate attorney licensed in the state where the property sits. Avoid any company demanding a large upfront fee with an ironclad promise attached.
How do you get out of a timeshare contract after the rescission period ends?
After rescission, your main options are a developer deed-back or surrender program, resale (often for very little money), or a negotiated release through an attorney. There is no legal shortcut that voids a valid contract for free. Be wary of any company promising certain cancellation once rescission has closed.
Are timeshares scams?
The purchase itself is usually a legal, disclosed contract, just often a poor financial deal with fast-rising fees. The bigger scam risk sits in the exit industry: the FTC's case against Timeshare Exit Team ended in a $17.7 million settlement over upfront fees collected without delivering promised cancellations.
How much do timeshares cost?
The average timeshare purchase price was about $23,940 in 2023, per ARDA owner survey data, with annual maintenance fees averaging around $1,205 that same year. Costs vary widely by resort, points system, and unit size, and maintenance fees typically rise most years.
How much is a timeshare worth on resale?
Often very little. Many timeshares resell for a few hundred dollars, and a large share list for $1 just so the seller can be free of the deed and its ongoing maintenance fee obligation. Newer, points-based ownership at major branded resorts sometimes holds more resale value than older weeks-based units.
How do I sell my timeshare?
List it on a resale marketplace like RedWeek or the Timeshare Users Group for a modest fee, price it realistically (often near zero), and check your contract for any right-of-first-refusal or developer transfer approval requirement first. Never pay a large upfront fee to someone who claims a buyer is already lined up.
How can I tell if a timeshare exit company is a scam?
Watch for a large upfront fee, an ironclad promise of cancellation, pressure to stop paying maintenance fees, vague or unverifiable attorney involvement, and a company history that's hard to trace. The FTC sued Reed Hein & Associates (Timeshare Exit Team) over this exact pattern and reached a $17.7 million settlement.
Should I stop paying my maintenance fees while an exit company works on my case?
No. Stopping payment on amounts you legally owe can trigger late fees, collections, and credit damage, and it doesn't cancel your contract. No legitimate company should ever tell you to do this, and it's one of the clearest scam red flags in the industry.
What is a timeshare deed-back program?
A deed-back, or surrender program, lets you transfer your deed back to the resort developer directly, ending your ownership and future maintenance fee obligations. Marriott Vacation Club, Bluegreen, and Wyndham have offered versions of this at times. Eligibility usually requires being current on fees with no mortgage balance.
How do I report a timeshare exit scam?
File a report at reportfraud.ftc.gov and with your state attorney general's consumer protection office. These reports build the evidence base regulators use to bring enforcement actions, even if an individual complaint doesn't produce a personal refund right away.
What should legitimate timeshare exit help actually cost?
Rescission inside your state's window should cost close to nothing beyond mailing a certified letter. Document preparation or template services often charge a flat one-time fee. Attorney hourly rates vary by market. Be very cautious of anything in the $3,000 to $10,000-plus range demanded upfront with a promised outcome.
Can a timeshare exit company guarantee they'll cancel my contract?
No legitimate company can promise a legal outcome, especially before reviewing your specific contract and state law. Any company making this promise on a first call, before seeing your paperwork, is showing one of the clearest red flags described in FTC enforcement actions against exit companies.
Sources
- FTC v. Reed Hein & Associates LLC (d/b/a Timeshare Exit Team), FTC press release on $17.7 million settlement, March 2021: FTC alleged the company charged thousands in upfront fees promising legal cancellation and reached a $17.7 million settlement
- Washington State Office of the Attorney General, press release on lawsuit against Reed Hein & Associates (Timeshare Exit Team): Washington's attorney general sued Reed Hein & Associates in state court over timeshare exit practices
- FTC, Press Releases archive: Searchable record of FTC enforcement actions against timeshare exit companies
- Federal Trade Commission: Timeshare exit companies charging advance fees before delivering services may violate the FTC's Telemarketing Sales Rule, which prohibits collecting fees before performance in certain circumstances.
- Better Business Bureau: Consumers can check a timeshare exit company's complaint history and rating through the Better Business Bureau before paying for services.