How to spot timeshare exit scams: choosing a trustworthy claims or relinquishment firm

A practical guide to avoiding timeshare exit scams — and to steering clear of firms that simply can’t deliver the outcome you need.

A dirty business

It is no secret that the timeshare industry has attracted nefarious characters over the past few decades. It has offered plenty of opportunities to make easy money in an environment built for persuasion: holiday resorts and luxury apartments are hard to resist when you’re enjoying the endorphins of a family break. As well established psychology shows, people in a great mood are more likely to say yes (it’s why you only ask your boss for a raise when they seem happy).

Bad actors flocked to get involved and pushed the boundaries further and further. They sold apartments that would never be built, lied about amenities that would never exist, promised buy-back schemes that would never materialise, and reassured owners about “reasonable” limits to maintenance fee increases.

The industry was also used to launder the proceeds of crime on an unprecedented scale and, by 1999, the authorities had focused significant resources on reining in illegal activity, arresting many key criminals.

Laws were also introduced to protect consumers from high-pressure timeshare sales.

Bad actors react

These new rules forbade companies from taking deposits during the cancellation period, which is currently 14 days in Europe. Those two weeks are meant to give buyers time to get home, take stock, and weigh up the true cost of a timeshare commitment in the cold light of day.

Timeshare companies knew that if they couldn’t lock people in by taking money while they were still in ‘holiday euphoria’, sales would be much harder to close.

So what did they do?

They ignored the law completely and continued taking as much money as possible on the day of the presentation. They also knew the infamous Spanish bureaucracy could work in their favour. Anyone trying to sue could find themselves trapped in red tape — not only within the legal system, but across many aspects of Iberian administration. With lawyers delaying matters still further, even the most determined British timeshare victim could run out of time, money and patience after endless rescheduled hearings and drawn-out appeals.

Claims firms: the good and the bad

Then came timeshare claims firms.

Where individuals might be worn down by delay tactics, claims firms could stay the course: pushing back against time-wasting appeals, attending every delayed or rescheduled hearing, and pursuing cases through to the result. A watershed moment was Tove Grimsbo’s precedent-setting victory over Anfi in 2016. That opened the floodgates to potentially billions in timeshare claims, relating to decades of lawless behaviour at the expense of customers.

Claims firms have been so successful on behalf of their clients that some of the biggest names in European timeshare are closing down, with many entering various stages of bankruptcy, administration or liquidation.

With so much legitimate work available in bringing timeshare crooks to justice, you might wonder why anyone would still bother scamming people.

• First, selling a service and then not providing it means the money is all profit, because there are no real outgoing costs.
• Second — and perhaps more importantly — some of the people behind scam operations are the very same crooks who can no longer earn their living in the timeshare industry itself.

This is a group of people used to lying and cheating for a living, with in-depth knowledge of how the market works. They can set up a fake claims or relinquishment firm and sound almost as convincing as the genuine article.

So how do I tell the difference?

Legal fees are not cheap, and no genuine firm can afford to tie up that much working capital on a client’s behalf while waiting for an award. With thousands of clients, that quickly adds up to millions of pounds.

That’s why fees are often paid up front — and unfortunately, that also provides cover for scammers who want to take the money and disappear.

With so much at stake, it’s essential to choose carefully when appointing a timeshare claims or relinquishment firm.

Like most internet-age fraudsters, they leave clues — if you know what to look for.

1. Check how long they’ve been trading. Choose a company that has been in business for a long time. Scam firms rarely last more than a few weeks or months: complaints build quickly, trust collapses, and they shut down, rebrand, and start again. Treat newly incorporated companies with extra caution.
2. Look for strong, credible online reviews. Check what customers have to say about the firm on Google Reviews and Trustpilot. A high proportion of 4 and 5-star reviews is a good sign, but read the critical feedback too. Every business makes mistakes — what matters is how they respond. Are they defensive and dismissive, or do they deal with issues respectfully and try to put things right?
3. Do they publish video testimonials? Videos of real clients sharing their experience can be more informative than written reviews, because you can judge credibility and detail for yourself. Ideally, such testimonials should be checked by a trustworthy external authority.
4. Assess their wider online footprint. Look for a firm with an overwhelmingly positive online presence across multiple sources. Ideally, you want consistency: different platforms reaching the same conclusion that the company is trustworthy and capable. If there’s the occasional negative article, consider whether it could have been written by competitors.
5. Do they have real offices you can visit? Many scam firms use ‘virtual addresses’ in buildings that host thousands of businesses. Credible companies have genuine, physical offices where staff actually work — and they are accessible to clients, whether in person or via Zoom calls.
6. Can they show a track record you can verify? Look for a company that can demonstrate outcomes and publish their victories in a way prospective clients can check.
7. What does reputable media coverage say? Are there positive reports from high-quality media outlets that are likely to fact-check thoroughly?
8. Check the standard of their website and materials. Scam firms that don’t plan to be around for long often cut corners on their website and promotional output. Watch for poor design, spelling and grammar errors, or other signs of low effort and little attention to detail.
9. Will they take payment by credit card? Fraudulent companies often push for bank transfer. Credit card payments can offer protection; bank transfers generally don’t. If they insist on bank transfer, ask yourself why: is it to avoid card fees, because they can’t obtain card payment facilities, or because they don’t want you to have the option of recovering money if you feel cheated?
10. Do they work with reputable legal partners? To deliver results, a claims firm needs close working relationships with legal partners in the UK and in Spain. Most claims are against Spanish resorts, so Spanish lawyers are essential to navigate the legal system. For various reasons, SRA-registered UK solicitors can be vital too.

More advice?

There is an excellent website called Timeshare Trust UK with advice and resources to help you research claims firms yourself. There are also various independent consumer associations that can advise you for free.

To discuss timeshare problems with an expert at the Timeshare Advice Centre, get in touch with our team and request a free consultation.