Timeshare Exit Scams: Here’s What You Need to Know

Ever feel like your timeshare started as a dream vacation but turned into a financial nightmare? You’re not alone. Plenty of people who once loved their timeshare now feel trapped by rising fees, limited booking options, and contracts that seem impossible to escape. And when desperation sets in, there’s always someone waiting to take advantage.

That’s exactly what happened with Encore Law Inc., Last Resort Consulting, and Tradebloc—three companies that promised timeshare relief but instead violated Minnesota’s debt settlement laws by charging upfront fees without proper licensing. The Minnesota Attorney General just nailed them, securing nearly $270,000 in refunds for misled consumers (Source).

If you’re stuck in a timeshare and considering a way out, you need to know the difference between a legit exit strategy and a scam—because the wrong move could cost you thousands with nothing to show for it.

The Timeshare Trap: Why So Many People Want Out

Timeshares sound great in theory. Pay for a slice of paradise, return every year, and make lifelong vacation memories. But in reality?

• Maintenance fees never stop climbing.
• Booking can be a nightmare. You don’t always get the time or place you want.
• Selling one is harder than getting rid of a pet alligator. No one’s lining up to take over your contract.

So when a company comes along saying “We’ll make your timeshare disappear!”—people listen. And that’s where things can go off the rails.

The Dark Side of ‘Timeshare Exit’ Companies

Here’s the ugly truth: A lot of “timeshare exit” companies aren’t in business to help you—they’re in business to help themselves to your money.

They often use high-pressure tactics to make you believe:
✅ They have a special connection with your timeshare company (they don’t).
✅ They can guarantee you’ll get out (they can’t).
✅ You need to pay thousands upfront before they even lift a finger (huge red flag 🚨).

And after you pay? You’re often left with empty promises and no results—or worse, an even bigger financial mess. That’s why Minnesota took action against these bad actors, making it clear that deceptive timeshare exit scams won’t fly in their state (Source).

How to Get Out of a Timeshare Without Getting Scammed

If you’re looking for a real way out, don’t just jump at the first company that promises the world. Here’s how to protect yourself:

1️⃣ Call Your Timeshare Company First

Yes, seriously. Many timeshare companies have official exit or resale programs. They’re not always easy to find (because they don’t exactly advertise them), but they exist. Ask them what legitimate options they offer.

2️⃣ Avoid Paying Upfront Fees

In Minnesota, it’s illegal for a debt settlement company to charge you before they deliver results. If a company is asking for money upfront, run. (Source)

3️⃣ Check for Licensing and Complaints

Before working with any exit company:
✅ See if they’re registered with your state’s Department of Commerce.
✅ Look them up on the Better Business Bureau (BBB).
✅ Search for complaints with the Attorney General’s Office.

4️⃣ Be Wary of ‘Too Good to Be True’ Promises

If someone claims they can guarantee an exit or wipe out your contract overnight? 🚩🚩🚩 That’s not how this works. Legitimate exits take time, and there’s no magic wand solution.

5️⃣ Consider Legal Advice if Needed

If you’re dealing with a particularly shady contract, talk to a consumer protection attorney who specializes in timeshares. A real lawyer—not a scammy “timeshare exit expert.”

Final Thoughts: You Deserve a Way Out—But Do It the Smart Way

The timeshare industry is built on making it easy to get in and nearly impossible to get out. That’s why people turn to exit companies in the first place. But scammers know this too, and they’ll take advantage of anyone desperate for an escape.

If you’re looking for a way out, do your research, avoid upfront fees, and don’t get pressured into paying for empty promises.

Have you dealt with a timeshare exit company? Drop a comment below—I want to hear your story. And before you go, subscribe, and check out GetOutOfDebt.org for free resources to help you navigate your way to financial freedom.

Steve Rhode Debt Coach and Author

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

See Full Bio

Consumer Debt Consumer Bankruptcy How to Get out of Debt Money Troubles Money Personalities Budgeting Behavioral Economics Motivation Inspiration Money Management The History of Credit and Debt Getting Out of Debt Get Out of Debt Debt Settlement Credit Counseling Loan & Debt Relief Scams Debt Relief Industry Practices Exposing Deceptive Financial Services Helping Consumers Navigate Financial Hardship Consumer Advocacy Consumer Debt Expert Consumer Protection Debt Relief Scam Student Loan Bankruptcy Debt Validation Debt and Mental Health Student Loans Debt Consolidation Debt in the Military