The timeshare industry offers dream vacations — but unfortunately, it has also attracted scammers who target owners and buyers. Knowing how to identify a scam and protect yourself is essential before making any transaction.
1. Common Timeshare Scams
Here are the most frequent types of fraud you may encounter:
- Resale Scams: Fake companies claim they already have a buyer for your property and ask for an upfront “processing fee.”
- Rental Scams: Scammers promise to rent out your timeshare quickly but never deliver.
- Exit Scams: Fraudulent “exit companies” charge high fees, claiming they can legally cancel your contract.
- Phishing Scams: Fake emails or websites ask for your personal or payment information.
2. Warning Signs to Watch For
Protect yourself by watching for these red flags:
- Requests for upfront payments or “marketing fees.”
- No physical office address or verifiable contact information.
- High-pressure sales tactics — “limited-time offers.”
- Requests for wire transfers or gift card payments.
- Poor online reviews or no presence on trusted websites.
3. How to Protect Yourself
- Verify the company’s license and contact information.
- Check online reviews and look for complaints on sites like the BBB or Trustpilot.
- Never send money upfront. Legitimate agents deduct commissions only after a sale.
- Consult a lawyer familiar with timeshare law before signing anything.
- Keep all documents and communications for your records.
4. What to Do If You’ve Been Scammed
If you suspect fraud:
- Contact your credit card company or bank to stop payment.
- File a complaint with the Federal Trade Commission (FTC) or local consumer protection agency.
- Report the company to timeshare industry associations and share your experience online to warn others.
5. Conclusion
Timeshare ownership can be wonderful when handled properly — but always stay alert for potential scams. Protect your money, verify every detail, and work only with trusted, licensed professionals.
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