Last updated 2026-07-24
TL;DR
American Resort Services (ARS) is a third-party collection agency hired by timeshare developers to collect overdue maintenance fees, special assessments, and other debts. If ARS contacts you, you already owe money to your resort. They cannot cancel your timeshare or negotiate an exit; they collect what the resort says you owe. Understanding your rights under the Fair Debt Collection Practices Act and your actual options for exiting legally is critical.
What is American Resort Services?
American Resort Services is a collections agency that works for timeshare developers and homeowner associations. They don't own resorts. They don't sell timeshares. They collect unpaid bills. When you miss maintenance fee payments or special assessments, your resort's HOA typically sends reminders for 60 to 90 days. If you still don't pay, many resorts hand the account to a third-party collector. ARS is one of the larger firms in this space. They send letters, make phone calls, and report debts to credit bureaus [1]. ARS operates under the Fair Debt Collection Practices Act, the federal law that governs third-party collectors [2]. That means specific rules apply: they can't call you before 8 a.m. or after 9 p.m. in your time zone, they can't harass you or use obscene language, and they must send written validation of the debt within five days of first contact. If you're getting calls or letters from ARS, it means your timeshare account is already in collections. The resort has decided you're delinquent and handed your file to someone whose only job is to get paid.
How to get out of a timeshare before collections start
The best exit path depends entirely on timing. If you just bought the timeshare and you're still inside your rescission window, you have a statutory right to cancel for a full refund. Every state gives buyers a few days to change their mind. Florida allows ten days [3]. Nevada allows five [4]. Confirm your state's rescission window in your purchase contract or by calling your state attorney general. To rescind, send written notice to the developer by certified mail, return receipt requested, before the deadline. Use the address and method specified in your contract. No reason required. The developer must refund your down payment, though some states let them keep a small cancellation fee. Once rescission expires, your options narrow. You're stuck with the contract unless the developer agrees to take it back or you find a legal exit. Many major brands now offer deed-back programs (sometimes called surrender, take-back, or relief programs). Wyndham's Pathways and Diamond Resorts' Transitions programs let certain owners deed the timeshare back to the HOA, usually with no fee if your account is current [5]. Marriott, Hilton, and others have similar programs with varying eligibility rules. If your brand has no deed-back option and you can't afford a real estate attorney to negotiate, you're left with selling (difficult, often for $1) or continuing to pay until the developer or HOA offers relief. Some owners negotiate a settlement: pay a lump sum to release the obligation. Others simply keep paying. For a detailed roadmap of every legal exit method, state-by-state rescission rules, and sample letters, see our guide on how to get out of a timeshare.
What happens when you stop paying maintenance fees
If you stop paying, the resort doesn't forget. Maintenance fees are a contractual obligation. Most timeshare contracts give the HOA the right to assess late fees, interest, and collection costs if you default. Here's the typical timeline. You miss a payment. The HOA sends a late notice and adds a fee (often $25 to $100). Thirty days later, another notice. Interest accrues monthly (state caps vary; many HOAs charge 12 to 18 percent annually). At 60 or 90 days past due, the account goes to a collections agency like ARS. Once in collections, the balance grows. The agency adds its own fees, allowed under your timeshare contract and state law. The HOA can report the delinquency to credit bureaus, which tanks your credit score. Foreclosure is possible but rare: most timeshares have little or no resale value, so foreclosure costs the HOA more than it recovers. Instead, they pursue collections, judgments, and wage garnishment in states that allow it [6]. Some owners stop paying hoping the resort will eventually offer a deed-back or forgive the debt. That sometimes works, but you'll spend months or years with damaged credit and escalating balances. The resort has no legal duty to release you, and many simply sell the debt to another collector or file a lawsuit. Bottom line: stopping payment is not an exit strategy. It's a default with consequences. If you genuinely can't afford the fees, talk to the resort or HOA first. Many will negotiate a payment plan or point you toward their deed-back program if you're current. Once you're in collections, your options narrow.
Your rights when American Resort Services contacts you
The Fair Debt Collection Practices Act gives you clear rights [2]. ARS must: • Send a written validation notice within five days of first contact, listing the amount owed, the name of the creditor (your resort or HOA), and your right to dispute. • Stop calling if you send written notice requesting no phone contact. They can still write. • Not call your workplace if you tell them your employer prohibits it. • Not call before 8 a.m. or after 9 p.m. in your time zone. • Not harass, threaten, or use obscene language. • Not falsely claim to be attorneys, government agents, or threaten actions they can't legally take. If ARS violates the FDCPA, you can sue them in federal or state court within one year. Damages include actual harm (lost wages, medical costs), statutory damages up to $1,000, and attorney fees [2]. The Federal Trade Commission and Consumer Financial Protection Bureau enforce the FDCPA against large agencies, and state attorneys general enforce parallel state laws. To protect yourself, keep every letter and log every call (date, time, who called, what they said). If they demand payment over the phone, ask for written confirmation. Never give bank account or card numbers over the phone unless you've verified the debt and decided to pay. If you dispute the debt, send written notice within 30 days of receiving the validation letter. ARS must stop collection activity until they provide verification (a copy of the original contract or a statement from the creditor). Send disputes by certified mail, return receipt requested, so you have proof. For complaints, file with the FTC (ftc.gov/complaint), the CFPB (consumerfinance.gov/complaint), and your state attorney general. If ARS is calling about a debt you paid, a timeshare you never owned, or an amount wildly different from what you signed for, dispute immediately and consider talking to a consumer rights attorney. Many take FDCPA cases on contingency.
Can American Resort Services cancel your timeshare?
No. ARS collects debts. They have no authority to cancel your contract, deed your timeshare back, or negotiate an exit on the resort's behalf. Some owners receive calls from ARS and confuse them with the resort itself. ARS is a vendor hired by the resort. They can accept payment, set up payment plans, and sometimes settle for less than the full balance if the creditor authorizes it. But they cannot terminate your ownership. If you want out of the timeshare, you have to work directly with the developer or HOA, not the collections agency. Call the resort's owner services department. Ask if they have a deed-back program or hardship relief. Some resorts will consider a surrender if you pay the balance in full. Others won't negotiate until the account is current. Paying ARS brings your account current (assuming they apply the payment correctly), which may open the door to a deed-back. But paying the collection agency alone doesn't cancel the timeshare or stop future maintenance fees. You're still the owner of record until the deed is legally transferred back or sold. Beware of timeshare exit companies that claim they can cancel your contract while you're in collections. Many charge $3,000 to $10,000 upfront and deliver nothing. The FTC has shut down multiple exit scams for taking fees and failing to provide services . If a company promises an exit while you owe money and demands large upfront fees, it's almost certainly a scam.
How much do timeshares cost and why fees go unpaid
| Purchase price (developer) | $20,000, $40,000 | |
|---|---|---|
| Purchase price (resale) | $1, $5,000 | |
| Annual maintenance fee | $1,000, $2,000 | |
| Special assessment (when levied) | $500, $5,000 | |
| Late fee | $25, $100 | |
| Collection agency fee | 25 to 35% of balance | Owners stop paying for several reasons. Retirement income drops and the fees become unaffordable. Health issues prevent travel. The resort quality declines, trading power shrinks, or booking flexibility disappears. Inherited timeshares burden heirs who never wanted them. Buyers realize they overpaid and feel trapped. Some assume they can "just stop paying" and the resort will take it back. That almost never happens automatically. The resort sends the account to collections, damages your credit, and may sue. The timeshare stays on your deed until you formally exit. If you're current on fees but struggling, act now. Contact the developer about deed-back before you default. If you've already stopped paying and ARS is calling, you'll likely need to settle the balance or negotiate a payment plan before the resort will consider any exit. |
Timeshares sold at presentation range from $15,000 to $50,000 or more, though resale market prices are often under $1 or even negative . The real long-term cost is maintenance fees. Annual maintenance fees average $1,000 to $1,500 for a week of use, but they rise every year. The American Resort Development Association reported average fees of $1,120 in 2020 . Many owners see 4 to 8 percent annual increases. Over 20 years, fees can double. Special assessments for roof repairs, hurricane damage, or resort upgrades add hundreds or thousands on top of regular fees. | Cost component | Typical range |
How to sell a timeshare (and why it's so hard)
Selling a timeshare on the open market is difficult because supply vastly exceeds demand. Thousands of owners list weeks for $1 on eBay, Redweek, and Timeshare Users Group. Many get no offers. Even desirable resorts in peak seasons struggle to sell for more than a few hundred dollars . Why? New buyers can attend a sales presentation and get heavily discounted or even free weeks as an incentive. Resale buyers pay transfer fees (often $500 to $1,500) with no perks. Developers sometimes refuse to honor benefits like bonus time or exchange privileges for resale purchases. And every buyer knows they're assuming rising maintenance fees forever. If you want to try selling: 1. List on Redweek.com, TUG (timeshareusersgroup.com), or eBay. Avoid any service that charges upfront listing fees of hundreds of dollars; those are often scams. 2. Price it at $1 or offer to pay the first year's maintenance fees. Yes, that means you lose money, but it's often the only way to find a buyer willing to assume the obligation. 3. Verify that your resort allows resale transfers. Some developers (Disney Vacation Club, Marriott, Hilton) restrict resale purchases from accessing certain perks, which shrinks your buyer pool. 4. Be ready to pay transfer and closing costs. The buyer may demand you cover them. If you get an unsolicited call from a company claiming they have a buyer ready, it's a scam. The caller will ask for an upfront fee ($500 to $3,000) for closing costs, taxes, or title work. You pay, and the buyer vanishes. The FTC has sued multiple timeshare resale scams for this exact scheme . Real estate agents rarely take timeshare listings because the commission (typically 6 percent of sale price) on a $1 sale is six cents. Licensed agents who do specialize in timeshare resales may charge a flat fee of $500 to $1,500, but verify their license with your state real estate commission before paying anything. For more on legitimate versus scam resale approaches, see how to get out of timeshare.
How to get rid of a timeshare you can't sell
If selling fails and you're current on fees, check your developer's deed-back program first. Most major brands introduced these between 2016 and 2020 in response to rising complaints and regulatory pressure. Wyndham's Pathways program accepts deed-backs if your account is current, your loan is paid off, and you meet income or hardship criteria [5]. Diamond's Transitions program is similar. Marriott, Hilton, and Westgate have programs with varying rules. Call your resort's owner services and ask by name. If your developer has no program, or you don't qualify, options narrow: • Negotiate directly with the HOA. Explain your hardship. Some HOAs will accept a deed-in-lieu of foreclosure if you pay current-year fees and sign a release. • Hire a real estate attorney. An attorney can review your contract, negotiate with the resort, and draft a release agreement. Expect to pay $1,500 to $5,000. This works best if you have a contract defect, a violation of state timeshare law, or a genuine hardship the resort wants to avoid litigating. • Give it away. Transfer the deed to a friend, family member, or even a stranger willing to take it (rare, but it happens). You'll still pay transfer fees, but you're done. Some churches, charities, and veteran's groups used to accept timeshare donations, but most stopped because the ongoing fees outweigh any benefit. • Keep paying and use it. If the fees are affordable and you'll actually vacation there, this is the least painful path. Never pay an exit company thousands of dollars upfront. Reputable attorneys charge by the hour or a flat fee with a clear scope. Exit companies that promise results and take $4,000 before doing any work are almost always scams. The FTC's Operation Timeshare Trap shut down a network of scammers who collected over $15 million from desperate owners and delivered nothing . For a step-by-step comparison of every legal option, read how do you get out of a timeshare. If you're facing a pile of exit company mailers and unsolicited calls, timeshare call list explains how these firms get your contact info and how to stop the barrage.
Are timeshares scams?
Timeshares are not inherently scams, but the sales tactics and long-term economics make many owners feel scammed. A scam involves fraud: you pay for something and get nothing, or the seller lies about material facts. Timeshare developers deliver what they promise: a legal deed or right-to-use contract, access to a resort, and the ability to book weeks. The problem is the sales presentation often inflates value, downplays costs, and creates pressure that leads buyers to sign contracts they regret within hours. Common deceptive tactics that skirt the line: • Claiming the timeshare is "an investment" that will appreciate. It won't. Resale values are near zero. • Promising easy rental income to offset fees. Rental markets are saturated and most owners lose money trying. • Offering "bonus weeks" or "free vacations" that come with blackout dates, hefty booking fees, or hidden costs. • Keeping buyers in presentations for four to six hours, using high-pressure closes, and discouraging them from reading the contract. These tactics led multiple state attorneys general to sue developers. In 2016, New York's AG secured a $1.6 million settlement with Manhattan Club for deceptive sales practices . In 2020, the Wisconsin Department of Agriculture, Trade and Consumer Protection sued Westgate Resorts for misleading door-to-door sales . Are those scams? Legally, some crossed into fraud. But the product itself is real. The deeper problem is structural: timeshares are expensive to buy, expensive to own, nearly impossible to sell, and hard to exit. That's not a scam, it's just a bad deal for most buyers. The real scams in the timeshare world are exit companies. Firms that charge $3,000 to $10,000 upfront, promise results, then vanish or deliver nothing. The FTC has taken action against dozens of these operations . If a company cold-calls you, claims they can cancel your contract in 90 days, and demands a large upfront fee, that's a scam.
What to do if ARS is calling and you want to exit
First, verify the debt. Request written validation. Make sure the amount matches what you actually owe (principal, late fees, interest, collection costs). Mistakes happen: accounts get mixed up, payments aren't credited, or previous owners' debts attach to your name. If the debt is accurate and you can pay it, paying brings your account current. Once current, call your resort and ask about deed-back options. Explain that you paid the past-due balance and you'd like to surrender the timeshare under their relief program. If they have one and you qualify, they'll send paperwork. You sign, the deed transfers back, and you're done (assuming no future fees owed). If you can't pay the full balance, ask ARS if the creditor authorized settlement. Some resorts let the collection agency settle for 50 to 70 cents on the dollar if you pay a lump sum. Get the settlement offer in writing, confirm it's from the creditor (more than the agency), and make sure it states the account will be marked "settled" or "paid in full" with the credit bureaus. A settled account still hurts your credit, but less than an unpaid judgment. If you can't pay anything right now, know that ignoring ARS won't make the debt disappear. The resort can sue. If they win, they get a judgment, which in many states allows wage garnishment or bank levies [6]. The statute of limitations on debt varies by state (typically three to six years), but timeshare contracts often include terms that extend it or allow the creditor to revive old debts. Some owners in this situation consult a bankruptcy attorney. Chapter 7 bankruptcy can discharge the debt (the money owed), but it doesn't automatically terminate the timeshare deed. You may still own the timeshare and owe future fees. Chapter 13 can restructure the debt. Either way, bankruptcy is a serious financial step with long-term credit consequences. It's worth a consultation if the debt is large and you have other unsecured debts, but it's rarely the right move for timeshare debt alone. For practical steps and sample dispute letters, the Consumer Financial Protection Bureau's debt collection guide is the best free resource [1].
Does ExitHonest's Exit Kit help with collections?
ExitHonest offers a one-time $149 Timeshare Exit Kit that walks you through every legal exit method: rescission, deed-back program applications, direct negotiation with your HOA, selling, and donating. It includes state-by-state rescission rules, sample letters, and a checklist. The Kit doesn't contact your resort or collections agency. It's not a law firm and doesn't provide legal representation. If you're already in collections, the Kit helps you understand your position and your options, but it can't erase the debt or promise any specific outcome. You'll still need to resolve the past-due balance (pay, settle, or dispute) and then pursue a deed-back or other exit on your own. If your account is current and you're exploring exits before you default, the Kit gives you the roadmap and documents to do it yourself without paying an exit company thousands of dollars. You can build your custom exit plan at /exit-kit-builder. But if you're facing a lawsuit, wage garnishment, or a large judgment, talk to a consumer attorney or bankruptcy lawyer. Those situations need legal representation, not a self-help guide.
Frequently asked questions
How to get out of a timeshare?
If you're inside your state's rescission window (typically 3 to 15 days after purchase), send written cancellation by certified mail to the developer before the deadline for a full refund. After rescission expires, check if your developer offers a deed-back program (Wyndham Pathways, Diamond Transitions, etc.). If not, you can try selling (often for $1), negotiating directly with the HOA, hiring a real estate attorney, or continuing to pay and use it.
How do you get out of a timeshare?
You get out by rescinding within your state's legal window, using a developer deed-back program, selling to a buyer willing to assume the fees, negotiating a release with the resort, or hiring an attorney to draft a deed-in-lieu. There's no magic cancellation right after rescission ends. Stopping payments doesn't cancel the contract; it sends you to collections and damages your credit.
How to sell a timeshare?
List it on Redweek, TUG, or eBay. Price it at $1 or offer to pay closing costs and the first year's fees. Verify your resort allows resale transfers. Avoid companies that charge large upfront fees or claim they have a buyer ready. Most timeshares sell for under $100 or don't sell at all because supply far exceeds demand.
How to get rid of a timeshare?
First, ask your developer if they have a deed-back or surrender program. If you qualify, that's the simplest path. If not, you can try selling (difficult), giving it away, negotiating a deed-in-lieu with the HOA, or hiring a real estate attorney to negotiate an exit. Never pay an exit company thousands of dollars upfront without verifying their license and track record.
Are timeshares scams?
Timeshares are not scams, but high-pressure sales tactics, inflated promises, and near-zero resale value make many owners feel deceived. The product is real; the economics are terrible for most buyers. The actual scams are exit companies that charge huge upfront fees and deliver nothing, which the FTC has prosecuted repeatedly.
How much is a timeshare?
New timeshares from developers cost $20,000 to $40,000 or more. Resale timeshares often sell for under $1 because supply overwhelms demand. The bigger long-term cost is annual maintenance fees, which average $1,000 to $1,500 and rise every year, plus special assessments that can add hundreds or thousands.
How much do timeshares cost?
Purchase price ranges from $15,000 to $50,000 at developer presentations. Annual maintenance fees average $1,000 to $1,500 nationwide. Special assessments for repairs or upgrades can add $500 to $5,000 in a given year. Over 20 years, you might pay $25,000 to $50,000 in fees alone, far more than the purchase price.
How much are timeshares?
Timeshares sold at resorts cost $20,000 to $40,000 on average, but resale prices on the secondary market are often $1 to $500. The ongoing costs are what matter: $1,000+ per year in maintenance fees that increase 4 to 8 percent annually, plus occasional special assessments. The total cost of ownership over a decade can exceed $15,000.
Can American Resort Services cancel my timeshare?
No. ARS is a collections agency that collects unpaid debts on behalf of your resort or HOA. They have no authority to cancel your contract or deed your timeshare back. If you want to exit, you must work directly with the developer or HOA, not the collection agency.
What happens if I don't pay American Resort Services?
If you ignore ARS, the debt remains. The resort or HOA can sue you for the balance. If they win, they get a judgment, which may allow wage garnishment or bank levies depending on your state. The delinquency reports to credit bureaus, damaging your score. The timeshare deed stays in your name until you legally exit.
Can I negotiate with American Resort Services?
Sometimes. If the creditor (your resort or HOA) authorizes it, ARS can offer a settlement for less than the full balance, often 50 to 70 percent if you pay a lump sum. Get any settlement offer in writing and confirm it states the account will be reported as settled or satisfied to credit bureaus. ARS cannot negotiate an exit from the timeshare itself.
How do I dispute a debt from American Resort Services?
Send a written dispute letter within 30 days of receiving their validation notice. Mail it certified, return receipt requested. ARS must stop collection activity until they provide verification (a copy of the original contract or a creditor statement). If the debt is inaccurate, file complaints with the FTC, CFPB, and your state attorney general.
Should I stop paying my timeshare to force the resort to take it back?
No. Stopping payment sends your account to collections, damages your credit, and may result in a lawsuit or judgment. Resorts rarely offer deed-backs to delinquent owners; they want payment first. If you can't afford the fees, contact the resort before you default and ask about hardship programs or deed-back options.
Will bankruptcy get rid of my timeshare?
Bankruptcy can discharge the debt (past-due fees and special assessments), but it doesn't automatically remove the timeshare deed from your name. You may still own it and owe future fees. Some filers negotiate a deed-back as part of the bankruptcy process. Consult a bankruptcy attorney to understand your state's rules and whether it makes sense for your situation.
Sources
- Consumer Financial Protection Bureau, Debt collection FAQs: Third-party debt collectors must follow the Fair Debt Collection Practices Act and provide written validation of debts.
- Federal Trade Commission, Fair Debt Collection Practices Act: The FDCPA prohibits debt collectors from calling before 8 a.m. or after 9 p.m., harassing consumers, or making false threats; violations allow consumers to sue for damages up to $1,000 plus attorney fees.
- Florida Statutes § 721.10 (2023): Florida timeshare buyers have a 10-day rescission period from contract signing or receipt of public offering statement, whichever is later.
- Nevada Revised Statutes § 119A.450: Nevada timeshare buyers have a five-calendar-day rescission period from signing or receiving required disclosures, whichever is later.
- Wyndham Destinations, Ovation by Wyndham program: Wyndham's Ovation program (formerly Pathways) allows eligible owners to return their timeshare if the mortgage is paid off, the account is current, and certain hardship or eligibility criteria are met.
- Consumer Financial Protection Bureau, What is wage garnishment?: Creditors with a court judgment can garnish wages in most states; limits vary by state and federal law, typically 25 percent of disposable income or the amount exceeding 30 times the federal minimum wage, whichever is less.