When is a “money-back guarantee” not a guarantee? Often when that so-called guarantee comes from a timeshare exit company. As an example, just read the following charges made by the Attorney General of Washington State against Reed Hein & Associates (the company known as Timeshare Exit Team) in a complaint filed in February 2020:
“Reed Hein’s position is that anything that terminates the customer’s timeshare ownership is an ‘exit’ in satisfaction of the guarantee, meaning that Reed Hein is not obligated to provide a refund — even if that ‘exit’ is the resort foreclosing on the customer, or the customer finding some way out of the contract on their own.”
“For years, Reed Hein also interpreted their guarantee to mean that no refunds were owed so long as the company said they still were working on the case.”
“The most recent version of the Money-Back Guarantee declares the Guarantee void if the customer achieves their own exit: meaning that Defendants are entitled to keep the customer’s funds even if they never did any work.”
So to put it simply, even if Timeshare Exit Team did nothing other than saying they were working on a case, allegedly Timeshare Exit Team would keep the money. Not much of a “money-back guarantee”, now is it?
Just as importantly, though, the Attorney General charged Timeshare Exit Team with not keeping sufficient cash to back the so-called “money-back guarantee”. Per the complaint:
“Defendants’ business practices leave the company far short of the assets needed to honor the Guarantee made to customers whose exits are outstanding. On information and belief, Defendants keep only a minimal operational reserve, such that funds paid by incoming customers must be spent to continue servicing Reed Hein’s backlog of un-exited customers.”
Are you being offered a “money-back guarantee” by a timeshare exit company? If so, you should ask tough questions to see if it is real. You may want to check with your state government and with the Better Business Bureau to verify its business practices and complaint history. You can also always contact your timeshare developer, and work directly with them – they can help you discuss your options.Full Legal Complaint
For more information, read the full Legal Complaint for State of Washington v. Reed Hein & Associates LLC.
Want to know about the business practices of a timeshare exit company? You may want to check with your state government and with the Better Business Bureau to verify its business practices and complaint history. You can also always contact your timeshare developer, and work directly with them – they can help you discuss your options.