Diamond Resorts® has noticed a large increase in third-party companies acting as resellers, or trying to solicit owners with promises to provide timeshare “transfer” or “exit” services. This is a serious problem that has hurt many of Diamond’s members and, in some cases, has cost the members thousands of dollars without the outcome they were promised.
What Happens
These companies often falsely promise to provide timeshare interest “transfers” or “exit” services to owners in exchange for excessive upfront fees, occasionally giving an alleged “money-back guarantee.”
Many of these companies invite members to attend seminars and free dinners to learn about fabricated “timeshare law changes” or “maintenance fee increases” that will affect their account. Most notably, members are often incorrectly told that their children will automatically inherit and become liable for the timeshare annual dues.
“These companies often convince owners to stop making payments on their contracts and tell the owners not to communicate with Diamond Resorts, promising a “legal” cancellation of their contract by making an agreement with Diamond.”
However, this does not happen. Diamond does not negotiate timeshare “exits” with unscrupulous timeshare “exit” companies, they are not authorized to represent us and have no special access, relationship or method of obtaining an “exit” for you from your timeshare contract. There is no way for these companies to obtain an “exit” for you without causing you to be in breach of your contract.
Sadly, many timeshare owners fall victim to these lies and, when the fraudulent company does not deliver on their promises, the victim is left without their money, in debt or with damaged credit and still under contract. At that point, Diamond Resorts is unable to assist, leaving everyone feeling helpless.
How to Protect Yourself
Diamond Resorts has created this website to raise awareness about this pervasive threat and to educate owners, so they do not fall victim to exit scams. This website is intended to be a resource for Diamond Resorts members and owners, members of the media, and other interested parties seeking to better understand the nature of timeshare exit scams.
Timeshare owners are encouraged to follow these tips to protect themselves from timeshare exit scams. Additionally, you can watch for several red flags. Scams committed by these fraudulent third-party exit companies often include one, if not more, of the following claims. These warnings should alert members and owners that they are not communicating with a legitimate third-party exit company:
Red Flags
Diamond Resorts urges members and owners to exercise caution when they receive unsolicited emails, text messages or phone calls from an unknown company offering a guaranteed exit from their ownership.
The scams committed by these fraudulent third-party exit companies often include one, if not more, of the following claims. These are red flags that should alert members and owners that they are not communicating with a legitimate third-party exit company:
You are guaranteed a way to exit and told they work with Diamond Resorts on your behalf.
You are asked to pay money or fees upfront for any timeshare exit or timeshare resale service.
You are asked to share your account or login information.
You are told to not communicate with Diamond Resorts about your ownership.
The third-party reseller claims to be affiliated with Diamond Resorts.
How Diamond is Taking Action
While this is an industry-wide problem, Diamond Resorts feels compelled to protect our members and owners by educating them about the nature of the threat and by taking legal actions, where appropriate, against illicit companies seeking to exploit unsuspecting owners of timeshare interests.
Diamond Resorts is committed to protecting our members and timeshare owners from this threat, and to date, we have filed litigation against a dozen firms. There is simply no need for these companies to exist other than to mislead consumers for their own benefit.
While we know that the vast majority of our members love their vacation ownership, we also recognize that life circumstances change and some members may want to transition out of their ownership. Diamond Resorts encourages timeshare owners who may be interested in adjusting their contracts to contact their developer directly for safe and legitimate options. This is the only way to avoid paying unnecessary fees.
“Diamond Resorts and other timeshare developers offer a safe way for owners to exit their timeshare contracts without third-party “exit” companies stealing their money.”
Diamond has developed and publicized a range of services to help members adjust their ownership contracts to meet their needs. These include options to modify or rewrite loan terms and our Transitions™ program, which for a fee allows members who meet eligibility criteria to retire all or part of their membership. Note that any member who is working with a third-party “exit” company may not be permitted to use our member relief programs.
Customer satisfaction is our top priority, and we are committed to working with all members and owners to find a proper solution.
Additional Resources
For additional information, please visit: