A safe timeshare exit path starts with the developer, not a cold call. Many big resort firms run their own exit or surrender plans, and owners can call them for free. Outside exit firms can help in some cases. But federal and state officials warn about firms that charge large fees upfront, promise results or tell owners to stop paying. That can lead to foreclosure and harm to credit.
The stakes are real on both sides. Timeshares are still a $10.7 billion a year business in the United States, and many owners want out because fees keep rising. That need has drawn both honest helpers and plain fraud. Here is how to tell them apart.
Why So Many Owners Want Out
The American Resort Development Association’s 2026 State of the Industry report shows how big the market still is. U.S. timeshare sales hit $10.7 billion in 2025 across 1,434 resorts. The average buyer paid $24,740. Resorts stayed about 80% full, a sign that many owners use and like their weeks.
Costs keep going up, though. The average yearly upkeep fee rose 4.7% to about $1,550 per week owned. Those fees last as long as an owner holds the contract, and they often rise each year. For retirees, heirs who got a timeshare in a will, or families whose travel habits changed, that bill can feel like it will never end.
Start With the Developer
The Federal Trade Commission’s first tip is simple: contact the developer before paying anyone to get you out. Some exit firms charge thousands of dollars. Then they do little more than call the developer for the owner. Owners can make that call themselves.
Several big firms run formal plans. Wyndham launched Certified Exit in 2021 with no upfront fees. It took the place of an older plan that helped owners leave more than 85,000 contracts. Marriott Vacation Club lists a timeshare exit line for Marriott, Sheraton and Westin owners. The rules on who can use these plans vary. Owners who still owe on a loan most often need to pay it off first.
Know Your Right to Cancel
New buyers often have a short time to cancel with no penalty. Florida is one of the largest timeshare markets. It gives buyers until midnight of the 10th calendar day after they sign or get the required papers, whichever comes later. Buyers cannot give up that right. Other states set their own time frames, so buyers should check their contract and state law right away. The FTC says to cancel in writing by certified mail with a return receipt.
The Red Flags Officials Keep Seeing
The FTC, state attorneys general and the FBI point to the same warning signs again and again.
- Large upfront fees. Good resale firms most often get paid after a sale closes. If you pay first, get the refund terms in writing.
- Promised results. No firm can promise a developer will free an owner from a valid contract.
- Advice to stop paying. Owners who stop paying their mortgage or upkeep fees can face foreclosure, debt collectors and harm to their credit.
- Calls out of the blue. Cold calls that promise a buyer or an easy exit are a classic start to fraud.
- Claimed ties to your resort. Scammers often hint at a link to the developer that does not exist.
The FBI has also warned about resale scams tied to Mexican timeshares. Those led to about $39.6 million in reported losses in 2022. Many victims were then hit again by fake “recovery” firms that said they could get the money back.
What Court Cases Show
Recent cases show how much bad actors can cost. In April 2026, a federal court ordered the man who ran the Square One timeshare exit scheme to pay $140 million and banned him from the business. The FTC said the scheme took more than $90 million from buyers, most of them older adults. It said the scheme falsely claimed ties to timeshare firms and did not pay the refunds it promised.
State officials have acted too. In 2021, Washington’s attorney general reached a $2.61 million settlement with Reed Hein & Associates. Another $19 million in fines was held back. The claims in that case included a false money-back promise and counting foreclosures as good exits. In 2025, Minnesota’s attorney general won refunds from three exit firms. Those firms had charged illegal upfront fees without the license the state requires.
Resort developers have also sued exit firms. They claim some of these firms push owners to break valid contracts. The legal fights cut both ways. That is one more reason owners should read each contract with care before they sign with anyone.
What a Legitimate Exit Company Looks Like
Not every outside firm is a scam. Some work with lawyers, write down what went wrong with an owner’s first sale and deal right with developers. Business Insiders has profiled a timeshare exit CEO known for a values-driven approach in a field where officials have found plenty of bad actors. Owners who are looking at any firm should check for a few basics.
- A written contract that says just what the firm will do and when.
- Fees tied to results, or a clear refund policy that holds up.
- No advice to stop paying bills unless a lawyer first explains what could happen.
- Licensed lawyers on board when the firm makes legal claims.
- A clean record with the state attorney general and the Better Business Bureau.
Owners who think they were misled when they bought should also talk with a consumer protection lawyer licensed in their state. More news on consumer and legal topics is in the law section.
Frequently Asked Questions
Can I just stop paying my timeshare?
You can, but it comes with real risk. Officials warn that if you stop paying, you can face foreclosure, debt collectors and harm to your credit. Talk to the developer and a lawyer first.
Do timeshare developers really take timeshares back?
Some do. Wyndham’s Certified Exit and Marriott’s exit line are two examples. Who can use them depends on the firm, the contract and whether a loan is still owed.
How do I check whether a timeshare exit company is legitimate?
Search your state attorney general’s site for complaints or lawsuits. Read reviews from more than one source. And never pay a large fee upfront without a written refund policy.
The Bottom Line
Getting out of a timeshare is often possible. But the cheapest and safest path most often starts with the developer. Owners who need outside help should choose with care. They should avoid upfront fees and promises of results, and never stop paying without knowing what could happen. A few calls and some homework can save thousands of dollars and years of credit harm.
