- Timeshare fraud can result in significant financial losses for owners seeking exits.
- Shirley England lost $9,000 to a fraudulent timeshare exit company in Hawaii.
- ARDA advises caution with upfront fees and guarantees; safer options include brokers.
SALT LAKE CITY — Timeshare fraud can be a major financial misadventure for owners who no longer have the time or interest in using their timeshare.
"I've been attempting to sell it, or give it back, or whatever," Shirley England told me in July about her timeshare in Hawaii.
She was so desperate to get out of her Hawaiian timeshare that she paid more than $9,000 to a so-called "timeshare exit company" that promised to get her out of that timeshare with a 100% guarantee.
Two years later, England still owns that timeshare. Her demands to that exit company for a refund went nowhere.
"They've just totally ignored me – 100%,"
"It's a difficult situation," said Jason Gamel, president and CEO of ARDA, the trade association for the timeshare industry.
It's an industry seemingly rife with fraud. The Federal Trade Commission and the FBI say Americans reported losing more than $300 million to timeshare fraud between 2019 and 2024.
The red flags
ARDA has begun a new initiative to try to help would-be timeshare sellers spot red flags. They launched a website, and they're talking to reporters about things like timeshare exit companies demanding a big fee, upfront.
"For all that money that goes upfront for services, what am I going to get and how are you going to guarantee it's going to happen?" Gamel said.
If an exit company guarantees a quick exit, it's a likely sign you're about to be had. And Gamel warns if a company touts some proprietary method for getting you out of your timeshare, they're feeding you a line.
"An exit company can't do anything unless the developer helps them out," he said.
Gamel also says fraudsters often instruct timeshare owners to stop paying their mortgage or fees to get out. That could blow up your credit. Safer ways to offload a timeshare include hiring a real estate broker to sell it. Or you can sell it yourself.
You can also give it to someone, which sounds great in theory. The thing is, just handing it off isn't that easy, which is why people like Shirley English turn to timeshare exit companies in the first place.
"I wouldn't invest in a timeshare again," she said.
But another approach is to simply ask the resort developer if they'll take back your timeshare.
"We do hear plenty of success stories for people who work through their developer or work through their resort, and they're able to return their inventory back," Gamel said.
Just know that approach comes with a significant downside: You won't get your money back. But you'll be out of the timeshare and all the fees and obligations that come with it.
