Cold call timeshare exit scams: how to spot fake claim and resale scam phone calls

The timeshare industry has a chequered reputation. Sometimes that comes from resorts overselling or misrepresenting what owners are signing up to. But a growing problem is the cold call timeshare exit scam — where someone claims they can “legally” get you out of your contract, then takes your money and disappears.

What might they say on a timeshare scam phone call?

A timeshare exit cold call often relies on personal information that should not be in the caller’s hands. In many cases, scammers may have breached data protection rights and obtained owner data from timeshare resorts or associated groups. They might tell you they got your details from a “Register of Timeshare Owners” — but no such register currently exists. If the caller seems to know unusually specific information, such as the exact date you purchased your timeshare or your home address, it may indicate the details were obtained via stolen data. Below are two of the most common cold-call timeshare scams.

The Fake Claim Scam

If your timeshare group has gone into bankruptcy, scammers may claim the liquidators passed your details to them (which is highly unlikely). They may also say you have money waiting in the courts from a group litigation case and that all you need to do is pay a small fee for the funds to be released. In reality, there is often no such group litigation case.

Once they’ve convinced you there’s a large payout due, they’ll ask for what feels like a small price to access it. Sometimes they won’t demand the full amount upfront. Instead, they get you to pay a few hundred pounds and then keep coming back for more, citing “translation fees”, “additional legal fees” and “court fees” — all to keep you chasing a non-existent pot of gold.

To stop you becoming suspicious (until they’re ready to disappear), scammers may call regularly with “updates” to create a sense of progress and professionalism. In reality, it’s a tactic to keep you on the hook until it becomes difficult or impossible to contact your bank in time. When the calls stop, you may be left with nothing and little chance of recovering what you paid.

The Fake Sale Scam

You may also receive a call from someone offering to sell your timeshare, falsely claiming they already have a buyer willing to pay thousands — as long as you pay the transfer costs. If you’re unsure whether your timeshare has any real resale value, look at the huge number of timeshares advertised online worldwide. Even on eBay you can find many listed for very little money, often with no interest or bids. Unfortunately, the market is crowded with unwanted timeshares, with owners keen to exit their agreement and the ongoing liabilities that can come with it. Don’t be persuaded simply because a caller tells you yours is the rare exception with significant resale value.

Stay safe

Not every call about timeshares is necessarily a cold call scam. You may have previously enquired with a company and forgotten about it, only for them to call months later with an update about a service or opportunity.

That said, if you receive an unexpected call about your timeshare or holiday membership, don’t make a decision on the spot — especially not one that involves paying money after a single conversation. Take your time and do your own research. The caller may be legitimate, but they could just as easily be a bogus operation.

If you suspect you’re dealing with an illegitimate company, ask for identifying details such as their registered company number and website address. If you choose to proceed, request everything in writing — scam companies are unlikely to want to leave a paper trail. If you can speak to someone face-to-face, either in person or via video call, that can also provide reassurance.

In many cases, fraudulent companies will ask you to pay by bank transfer. Legitimate companies should give you the option to pay by credit card. There is currently no legal consumer protection afforded to bank transfers. While UK banks are becoming more concerned about fraudulent transfers, reversing one can still be difficult. Remember: when you pay at least £100 by credit card, your credit card provider protects you in the case of failed service. Any remaining balance can be paid by bank transfer or other means, as the total fee payable is protected by Section 75 of the Consumer Credit Act 1974.