Vacationers Beware: Timeshare Exit Companies May Be Scammers, not Saviors


  • Two AGs took aim at timeshare exit companies recently over allegations of deceptive business practices relating to purported offers to assist consumers with ending their timeshare contracts. Missouri AG Eric Schmitt sued Martin Management Group LLC and a related individual (collectively “Martin Management”) for alleged violations of Missouri’s Merchandising Practices Act, and Washington AG Bob Ferguson sued Reed Hein & Associates, LLC, d/b/a Timeshare Exit Team, and related entities (collectively “Reed Hein”) for alleged violations of Washington’s Consumer Protection Act and Credit Services Organization Act.
  • In both the complaint against Martin Management and the complaint against Reed Hein, the AGs alleged that, among other things, defendants solicited large fees from consumers, including repeatedly requesting additional fees for purported costs, while never delivering promised services; advised owners to stop paying mortgages and property fees, resulting in substantial financial harm and additional debt for consumers; and did not honor their promises to refund consumers’ money if the companies were unsuccessful in helping the consumers obtain a release from their timeshare contracts.
  • The complaint against Martin Management seeks injunctive relief, restitution, civil penalties, and the costs associated with the investigation and prosecution of the case. The complaint against Reed Hein seeks preliminary and permanent injunctive relief, civil penalties, restitution, and costs.