Timeshare Exit Team Closes its Doors, Serving as Yet Another Warning to Consumers
Less than six months after Washington State Attorney General Bob Ferguson announced Reed Hein & Associates, also known as the Timeshare Exit Team, must stop its deceptive timeshare exit practices and pay $2.61 million to the state – plus an additional $19 million if it violates the terms of a consent decree – the company has officially closed its doors, serving as yet another example of unscrupulous third-party exit companies leaving consumers high and dry.
Unfortunately, there is a well-established history of timeshare exit companies using fraud and deceit to make a profit, then closing their doors when they cannot fulfill their far-reaching, too-good-to-be-true guarantees, while thousands of consumers are left paying the price.
In July 2021, according to the Better Business Bureau, as well as accounts from consumers and news reports, another company, Timeshare Termination Team, abruptly shut its doors without warning. Its website appears inactive, and the company has not responded to consumer inquiries about the thousands of dollars in upfront fees it collected without performing any service of value. There are reports that the company has since filed for bankruptcy.
In 2019, American Consumer Credit was ordered to pay a total of $23 million in civil penalties and was permanently prohibited from engaging in exit activities in the future. That same year, American Resource Management Group filed for bankruptcy with $20 million in outstanding consumer creditor claims, following multiple lawsuits related to deceptive practices and false advertising. The group operated under other business names and is related to a number of other companies that also filed for bankruptcy, including Redemption and Release, Resort Exit Team, Resort Release and Vacation Properties For Less.
In 2018, the Supreme Court of Tennessee disbarred the founding attorney of the Castle Law Group, another timeshare exit business, on a myriad of charges relating to consumer fraud complaints, and the business shut down its operations.
These are merely a few recent examples that clearly illustrate an established history of deceptive practices and legal issues involving timeshare exit companies. The American Resort Development Association-Resort Owners’ Coalition (ARDA-ROC) continues to caution consumers against doing business with these third-party timeshare exit companies.
ARDA-ROC instead encourages timeshare owners who are looking to exit their timeshare to talk to their timeshare developer, resort management company or HOA first to learn about the options available to them. Many developers offer low- or no-cost exit options to owners. The Coalition for Responsible Exit is also a place for owners to safely explore exit options that are supported by timeshare developers and can be accessed by visiting ResponsibleExit.com.