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The Truth Behind Timeshare Exit Companies
Why A Timeshare Exit Company Is Not Considered A Law Firm
Timeshare Exit Companies are not law firms and do not employ timeshare attorneys. Timeshare companies will only negotiate with legal counsel, not a timeshare exit company. Timeshare Attorneys are familiar with the negotiation process and can often negotiate a settlement acceptable to both parties on your behalf. Timeshare companies know that if they do not settle with you through negotiations, they will likely have to go to trial, which is much more costly for the developer.
Timeshare management companies understand that Timeshare Attorneys have a fiduciary duty by ethics and professional responsibility rules, which timeshare exit companies are not. For this reason, it is in the best interest of the Timeshare company to only negotiate with legal counsel.
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Can My Timeshare Resort Sue My Timeshare Exit Company?
Timeshare Exit Companies are not law firms and do not have the necessary experience or knowledge to represent you in court. While you may be able to find a timeshare relief company that is willing to work with you, it is essential to understand that they will not be able to provide you with legal counsel.
Timeshare exit companies consist of a former employee of the timeshare industry who owns the timeshare exit company and employs salespeople to sell an "exit solution" to timeshare owners by inducing timeshare owners to get out of their timeshare and default on their financial obligations to the timeshare developer.
Defaulting on the contractual obligation forces timeshare resorts to cancel the membership, sue the timeshare owner for breach of the timeshare contract, and sue the Timeshare Exit Company for tortious interference leaving the timeshare owner with legal action without legal representation.
Who Ranks The Best Timeshare Exit Companies?
Many timeshare exit companies pay writers and independent websites to rank them as the best in the industry. You have websites out there that have rankings from escrow payment option to 100 money back guarantee that is false. The websites are lead generators and will sell your information to the timeshare exit companies. Timeshare exit companies have paid the websites to rank them as the best.
Can I Trust A Company With Escrow Payment Option?
The escrow payment option is with the understanding that the timeshare owner will stop making payments towards their maintenance fees or loan to the timeshare management company leading the membership to cancel due to default, and the contract has technically canceled.
The company renders services, and the timeshare exit company has earned its money. Timeshare Exit Companies with escrow options cannot offer you credit protection.
Only lawyers can dispute negative remarks reported to the credit reporting agencies due to delinquency on the maintenance fees or loan. If any company conveys they will protect your credit, do not believe that claim.
Can Timeshare Relief Companies
Guarantee Results?
You should also beware of companies that guarantee they can get you out of your timeshare contract. No company or attorney can make this guarantee, as it is impossible to know your specific case's outcome. If a company does make this guarantee, they are likely not being truthful with you. Those are red flags!
Many people complain to the better business bureau that the guarantee of 100 money back has not been refunded by these companies when their timeshare contract has not canceled.
When looking for a reputable relief company, go online and read reviews. You can also check with the Better Business Bureau to see if there have been any complaints filed against the company for not. BBB rating is also essential. Review website to verify credentials, online reviews from different sources, and awards received identifying credibility and success.
Can Wesley Financial Group, Timeshare Exit Team, Timeshare Compliance, And Others Be Trusted?
Many timeshare relief companies claim to be the best in the business. However, timeshare resorts sue many of these companies for tortious interference. Wesley Financial Group, Timeshare Exit Team, and Timeshare Compliance are examples of companies sued for tortious interference. If you are considering using a timeshare relief company, be sure to research them thoroughly to ensure that they are legitimate and will not cause you more harm than good.
Companies such as Diamond Resorts, Wyndham Resorts, and Westgate Resorts have sued these companies. The lawsuits allege these companies lure timeshare owners into paying large upfront fees and their advertisements make a number of false claims, including that they have a legal method to cancel timeshare obligations, that customers would receive a "money-back guarantee" if the contract has not canceled in 24 to 36 months.
Some of the people these timeshare relief companies have scammed have lost over $20,000. These people were in a difficult financial position and were looking for a way out of their timeshare. Many find themselves out of the money paid in full to the relief companies, lawyers for timeshare developers are suing the companies, and the timeshare owner stranded without legal counsel.
Only companies working with lawyers who practice consumer protection and timeshare law have successfully gotten out of their clients out of their contractual obligations. However, these firms are the exception, not the rule. If you are considering using a relief company, do your research to ensure that they work directly with timeshare attorneys and will not cause you more harm than good.
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How To Spot Timeshare Exit Scams
If you're a timeshare owner, you need to be aware of the increasing problem of timeshare exit scams. These scams typically involve timeshare owners contacted by a company or individual who claims to be able to help them get out of their timeshare contract. The company or individual will often charge a thousand dollars or a large fee for their services, but in reality, they do nothing to help the timeshare owner and pocket the money.
5 Ways To Spot A Timeshare Exit Scam
#1 - They Claim To Have
Timeshare Attorneys
Many claim to have exit attorneys or a team of specialists that can help you get out of your contract, but this is often not the case. Their group of "specialists" will write letters on your behalf, making groundless claims that the resorts will ignore. Your timeshare's management company will not communicate with anyone unless it's the member or their legal representative. Do your research to see if the company is actually associated with any lawyers. If not, it's a scam.
#2 - They Will Ask You Not To Speak To Or Communicate In Writing With Your Timeshare's Management Company
The timeshare exit company will try to keep you in the dark by telling you not to communicate with your timeshare's management company. They will say that the resort will ignore any letters or phone calls from you because they will only be communicating with the timeshare exit company. This is not true, and you should always feel free to reach out to your timeshare's management company with any questions or concerns. Having a timeshare attorney representing you would allow you to speak to the resort as they will legally advise you from saying or doing anything that would comprise the outcome of the case.
#3 - The Company Offers False Credit Protection For Not Paying Your Fees To Resort
Timeshare Exit companies will falsely claim that they will protect your credit if you use their services. These companies cannot protect your credit, and your credit will be negatively affected if the timeshare company reports you to the credit bureau for not paying your fees. While an attorney may be able to help you dispute any negative remarks on your credit report, it is essential to understand that adverse reporting impacts your credit score. Only you or your attorney can dispute negative comments with the credit reporting agencies, not a timeshare exit company or unlicensed third party.
#4 - The Company Asks For Large Up Front Fees
One of the most common signs of exit scams is when the company asks for large up front fees. They will often say that this is for legal or administrative costs and to cover their attorney's fees. However, they are just pocketing this money and doing nothing to help you get out of your timeshare contract. In many states, it's illegal to charge up front fees for exit services or debt relief services unless it's a law firm or licensed attorney. If you are not paying a law firm or attorney, it's a scam.
#5 - The Company Guarantees Results Or Your Money Back
Another common sign of timeshare exit scams is when the company guarantees results or your money back. They may say they have a 100% success rate or offer a full refund if you're not happy with their services. However, there is no such thing as a 100% success rate when it comes to the timeshare exit process. And even if there were, the company would not be able to guarantee results because it's up to the timeshare resort to decide whether or not to accept the exit. As for guarantees of monies paid, timeshare exiting companies typically only offer these if you pay them in advance, which you should never do. And even if they did offer a full refund guarantee, it would be nearly impossible to get your money back if you're not happy with their services.
- Conclusion -
If you're considering timeshare exiting, it's important to understand the process and the potential risks involved. Unfortunately, there is a well-established history of timeshare relief companies using fraud and deceit to make a profit, then closing their doors when they cannot fulfill their far-reaching, too-good-to-be-true guarantees. At the same time, leaving thousands of consumers paying the price. With legal matters, it's always best to seek legal counsel using timeshare attorneys.
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Why Is The Timeshare Exit Industry No Different Than The Timeshare Resale Industry
The timeshare exit industry and the timeshare resale industry have comparisons for many reasons. They solicit timeshare owners, make false money-back guarantees, and charge hefty fees in advance. Communication starts off well, but after several months the communication ends, and in many cases, the company disappears or goes out of business.
How Does The Timeshare Resale Scam Work?
The typical resale scam works something like this: You get a call from a timeshare resale company that's seen your "for sale" ad online and claims to have a buyer lined up and ready to make a deal. The caller might even provide a name and phone number for the buyer, who confirms their interest.
All you have to do, the caller says, is pay a few expenses related to the sale—say, taxes, maintenance fees, closing costs, escrow and title services, or an upfront fee for the resale company. A promise to refund some or all these costs when the deal closes is part of their narrative.
If you agree to move forward, the caller will ask you to provide your credit card number or make a wire transfer to cover the expenses. After a period of time, the "buyer" disappears, and the resale company's phone is disconnected. The scam has taken place, and your money is lost.
What Can You Do To Avoid Timeshare Resale Scams?
If you're trying to sell your timeshare, be wary of any company that contacts you unsolicited and asks for upfront fees. Please don't give out your credit card number or make any payments until you've done some research on the company and confirmed that it's legitimate and is willing to work on commission collecting their fees when the timeshare has sold or is out of escrow.
Look at their bbb rating and online reviews. Suppose their bbb rating is negative or online reviews indicate people have paid the company. In that case, people complain getting someone to return their call is impossible, and timeshare owners have lost their money. Those are signs of resale scams.
What Can You Do To Avoid Timeshare Exit Fraud?
You can do a few things to avoid becoming a victim of timeshare exit fraud.
First and foremost, do not do business with unsolicited calls. Unless you reached out to the company, left a message, or filled out an inquiry form requesting a phone call, hang up and ignore the caller. Also, ignore any seminars with a free dinner to hear how you can get out of your timeshare. A "Free" gift got you in this mess in the first place, remember?
If you reached out to the company, do your research before signing any contracts or handing over any money. Doing research means reading the fine print of any contract you're considering signing and being sure you understand all the terms and conditions.
Make sure a licensed timeshare attorney is involved, and their name will be in the contract to accept liability if anything goes wrong. Also, look at their bbb rating and online reviews identifying business practices.
Second, if the exit company claims to have timeshare cancellation attorneys, be leary of their claim. Ask to speak to their Timeshare cancellation attorney, verify their license with the state bar, history of practicing timeshare law, success rate, complaints, or disciplinary action.
Make sure you will retain the attorney, NOT the timeshare exit company. Paying an Exit Company is not retaining an attorney. If they "outsource" an attorney to represent you, you are not establishing an attorney-client relationship. The attorney has no fiduciary obligation to you, leaving you without legal representation.
Third, stay away from any company that claims a 100% success rate or even 98%. How can you or anyone verify the success rate is accurate? It would be best if you also understood there is NO guarantee you will get out of your timeshare contract. Money-back guarantee is to lure you into paying the timeshare exit company.
Suppose the company goes out of business. How will you get your money back then? If the company you're working with claims they can guarantee your release from the contract, they are probably trying to scam you.
In conclusion, do not give in to high-pressure tactics, do your research, and be wary of companies that make empty promises. If you take these precautions, you will be much less likely to become a victim of timeshare exit fraud.
Why Risk A Timeshare Exit Scam
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