Every year, thousands of new people sign on to lifelong timeshare contracts. Consequently, a large percentage of these people end up regretting their decision once it’s already too late for timeshare cancellation. Their timeshare company refuses to release them from their contracts, and they’re unable to pursue timeshare resale. At this point, the last possible exit strategy is seeking the help of a timeshare exit company. But how do timeshare exit companies work?
There are multiple ways to navigate the timeshare exit process, some ethical and some completely fraudulent. It’s important to know how to identify a timeshare exit scam. If you’re wondering how timeshare exit companies work, read on to learn the ins and outs of the exit industry and how to navigate a responsible exit with a trustworthy company.
Why People Turn to Timeshare Exit Companies
Timeshare exit companies are supposed to exist to help timeshare owners who are struggling to get released from their contracts. Most people who find themselves in this situation have already been in the process of seeking release for months, if not years. They’ve probably contacted their timeshare company asking to cancel but to no avail. Let’s explain why this is so hard.
The timeshare industry works because it preys on innocent people who know very little about timeshares. Most people are targeted by timeshare developers when they are in vacation mode and, therefore, willing to spend more money than usual. They might even be given free perks to attend timeshare sales presentations.
Once there, these vacationers are dazzled by pictures of luxurious getaways and tours of only the nicest suites that the timeshare resorts have to offer. Salespeople convince them that they can easily and affordably own a slice of this paradise by making a timeshare purchase and getting them to sign a contract on the spot.
The ”act fast, buy now” mentality works time and time again. And even though there’s a rescission period that gives recent purchasers about a week to cancel their timeshare purchase with a money-back guarantee, most customers are completely unaware of this option. In fact, timeshare companies are trained to avoid the topic of timeshare exit options altogether. Though these options are probably written in tiny print somewhere on the timeshare contract, customers are not given the time to properly review the print before they are pressured to sign.
If timeshare owners do not cancel within the rescission period and there is no deed-back program offered, timeshare companies will not allow customers to cancel their contracts. It’s an unfortunate truth that many people fall victim to. And since the timeshare resale market is essentially hopeless and foreclosure can dramatically impact credit scores, proceeding with a timeshare exit company is usually the best way for seeking escape.
What to Look Out for When Working With an Exit Company
Couple consulting an expert about their contract
People looking to get out of timeshare ownership may think that turning to a timeshare exit company is their ticket to returning to a financially stable life. While this is true in some circumstances, it all depends on the timeshare cancellation company that you choose to work with. Since there are plenty of scamming timeshare exit services out there, here are signs that the company you are dealing with is no good.
Expensive Upfront Fees
Anytime a company asks you for large sums of money without explaining the details of their process, they may be scammers. Both timeshare resale companies and exit firms are notorious for doing this. They’ll talk a big game, guaranteeing you that they’ll get you out of your contract quickly and painlessly. But in many cases, they’ll take your money and run or do nothing at all because they have no real process for achieving client exits.
Don’t believe us? Just take a look at some reviews of timeshare exit companies that received less than positive reviews on Better Business Bureau (BBB.) Companies like UDI Consulting, Vacation Consulting Services, and Nationwide Settlement Solutions have been guilty of taking large amounts of their clients’ money upfront only to fail to provide any real services or achieve the results you are looking for. UDI even requested tens of thousands of dollars from a customer only to ignore them for months then threaten to drop them as a client if they didn’t pay them several thousands more.
Keep in mind though, it’s not uncommon for an exit company to require an upfront fee, so it isn’t automatically a red flag. But the reputable ones will do their best to limit your upfront costs through financing plans or escrow options.
If your timeshare exit company starts out with a hasty claim guaranteeing that they’ll get you out of your timeshare, suspicion is warranted. Boasting how easy, quick, and cheap it is for you to get released from your contract before actually understanding your unique situation or explaining how they will achieve release is reason for extreme concern.
It’s also a red flag when a company guarantees that you’ll get your money back. This is rare and any company that makes this claim is lying to you.
If you’ve been working on getting out of your timeshare contract for some time, it shouldn’t be so easy and quick for an exit firm to get you released. Planning an exit strategy is a nuanced process that each exit company should take the proper time and thought to resolve. If an exit firm is too confident about the possibility of getting you out without a thorough knowledge of your situation, they probably say this to everyone. Your situation deserves to be treated with care, consideration, and proper analysis. And the right timeshare exit team to do this is Centerstone Group.