Timeshare Buyout Scams

Vacation ownership opens your world to exceptional travel experiences that can be treasured for a lifetime. As with any major purchase, however, it’s important to be watchful of scams and fraudulent activity that prey on timeshare owners.

In recent years, timeshare buyout scams have ticked up with criminals devising cunning schemes to dupe timeshare owners. The FBI reported over 600 complaints, resulting in losses exceeding $39.6 million in March 2022 alone.

At Marriott Vacations Worldwide, our priority is to empower our Owners and ensure those looking to enter or exit vacation ownership do so responsibly and with ample information to make the right decision for them.

Learn more about how to spot and report a timeshare buyout scam and find additional resources on vacation ownership education below.

Spotting a Timeshare Buyout Scam

The first step in avoiding these scams is to understand the warning signs.

An unsolicited caller inquires about purchasing your timeshare.

If a company claiming to be a timeshare reseller calls you out of the blue, be cautious, especially if they promise guarantees of having buyers lined up. Ensure the party calling is a legitimate timeshare resale company by researching them online and looking them up through an accredited third-party site.

A third-party service asks you to pay a fee up-front.

Most fraudulent timeshare scams require selling owners to pay a large fee before receiving services. Legitimate companies rarely ask selling owners to make up-front payments. Fraudsters often demand payment before services are rendered — only pay once promised services have been delivered.

A third-party service pressures you with offers that are “time sensitive.”

Scammers want to “close” on a deal with you immediately, attributing the brevity to “limited time offers.” Take your time with any deal to sell your timeshare to conduct proper research.

A third-party service does not provide you with a contract.

Any legitimate timeshare offer will include a written contract detailing promises and conditions. If there is a contract, proceed with caution and confirm that any rescission rights provided by applicable state law are listed. Before entering a contract, know the protections your state offers.

Reporting a Timeshare Buyout Scam

If you or anyone you know has fallen victim to a timeshare buyout scam, take the following steps to report it.

1. Report the incident to the Federal Trade Commission online or by calling 877-382-4357.
2. File a report with your local law enforcement agency.
3. File a report with your local Better Business Bureau.
4. File a report with the FBI using the IC3 portal.
5. Contact your state’s Attorney General’s Office and the Attorney General’s Office in the state where the fraudulent business is located.
6. Cease payment immediately. File a complaint with your bank to halt payment on any services associated with the scammers.
7. If you see any of the red flags listed above, contact your timeshare company’s customer advocacy team to help you validate any third-party organization and assist you in navigating the situation. You can also contact the Coalition for Responsible Exit with the American Resort Development Association (ARDA), which is committed to helping Owners who desire to exit their timeshare understand the process.

Sources: ARDA; Federal Trade Commission