Nearly five years after hiring a company to get her out of her timeshare contract, A Pennsylvania woman says she’s out $2,500 and she’s one of the lucky ones. “Nobody likes to be ripped off from their hard-earned money,” Janice Malloy told 11 Investigates. Janice Malloy and her husband purchased their Timeshare in the Poconos in 1983. “We went all up and down the East Coast,” Malloy said. “We went out West, we went to the Southwest. We had some really nice vacations. We were very pleased with our timeshare.”
She said in the 80s, timeshares were cheap and they got their money’s worth.
“We paid it off right away and it was like getting a free vacation two or three times a year,” Malloy added.
By 2020, Malloy says the maintenance fees ballooned to thousands of dollars; but, the final straw was when a timeshare exchange wasn’t available for a trip she went on to the Grand Cayman Islands. She said she ended up paying a small fortune to rent a place, despite someone else in the group she was with, getting into a timeshare.
She says that’s when she decided she wanted out of her Timeshare. She hired Sapphire Timeshare Cancelation to get the job done.
“I paid them $2,500 and paid my credit card and they promised me within a year I’d be out of my contract,” Malloy tells 11 Investigates.
Nearly a year went by and still, nothing. She then realized they had been trying to contact the wrong timeshare company!
“I kept calling them to see what the problem was, how soon they were going to correct it, how soon I was going to see results and eventually they started not answering my calls,” Malloy said. “Not answering the phone.”
That was in 2021. Malloy says despite repeated attempts to get in touch with Florida-based “Sapphire Timeshare Cancellation,” her calls, messages, and even hand-written letters went unanswered.
Then she learned Sapphire Timeshare Cancellation went out of business.
“I was quite upset but I had no recourse,” Malloy added.
Brian Rogers started a consumer advocacy group in the 90s, warning people about timeshare exit companies.
“Many of them are fly-by-night and all it takes is a cell phone and client list, which can be purchased,” Rogers said. “You can run this scam for 6-8 months and collect hundreds of thousands of dollars before anyone catches on.”
11 Investigates learned the Federal Trade Commission, Attorney Generals in several states and the Better Business Bureau have all warned consumers about predatory timeshare exit companies. We also uncovered a list of lawsuits filed in Florida, Ohio, Minnesota, Wisconsin and Washington State against a number of fraudulent timeshare exit companies.
So, what can you do if you want to get out of your timeshare?
We asked Jason Gamel, the President of the American Resort Development Association, which represents over 1,500 timeshare resorts.
“We always recommend first and foremost people go to their timeshare company, their timeshare developer, because many of them have free or low-cost programs,” Gamel tells 11 Investigates.
If you don’t want to go that route, Gamel says, consider re-selling or renting first. And if you still want to use a third party, he says, choose wisely. Be aware of guarantees. Gamel says some exit companies classify a foreclosure as “successful.”
“We’ve seen several companies in the past go out of business and leave the consumers high and dry,” Gamel said. “There is nothing these companies can guarantee that their services will actually take place.”
Malloy says she was able to get out of her contract by working directly with the timeshare company and paying back some fees. She offers this personal advice to anyone thinking about getting a timeshare.
“Know all of the ins and outs of it – the pros, the cons and know in advance what is required if you need to get out of it at some point,” Malloy said.
Experts recommend you file a complaint with your state Attorney General’s Office and the Federal Trade Commission if you believe you hired a fraudulent timeshare exit company.
See the original story: FTC, multiple Attorney Generals warn consumers about fraudulent timeshare cancelation companies