“Before you trust a timeshare exit company, know the facts they hope you never find out”
A timeshare in Honolulu (Photo: Joel via Flickr / CC BY 2.0)
Every year, thousands of timeshare owners seek a way out of their timeshare
contracts—only to find themselves navigating a murky, largely unregulated, and often
deceptive exit industry. While many timeshare exit companies promise easy solutions
backed by attorneys or money-back guarantees, the reality is far more complex—and
far more dangerous.
According to the Timeshare Exit Study, 55% of owners fail in their attempt to exit, and
one in four fail because they hired an exit company that didn’t deliver. The core issue?
Misleading marketing by exit companies that give timeshare owners a false sense of
personal legal representation and financial protection.
The Illusion of Legal Representation
Many timeshare exit companies use legal-sounding marketing to gain consumer
trust—slogans like “attorney-led exits,” or “our attorneys will be working on your file,”
These phrases can create the impression that timeshare owners will receive personal
legal representation. But in most cases, that’s simply not true.
In reality, the attorneys or law firms involved are typically retained to represent the exit
company—not the individual consumer. That distinction matters. As Gordon
Newton—author of The Consumer’s Guide to Timeshare Exit, Founder and President of
Newton Group, and Co-Founding Non-Attorney Partner of the nation’s leading
timeshare consumer rights law firm—explains:
“Many timeshare exit companies use language that can be very misleading and may
make consumers feel safe—when in reality, they may have no legal protection at all.”
Newton warns that these arrangements often come with fine-print disclaimers: “If you
scroll to the bottom and read the fine print on many of these companies’ websites, you’ll
often find disclaimers like:
“Attorney or legal staff is directly employed by company”
“No attorney-client relationship is formed”
“You gain the benefit of talking to our lawyer”
“These disclosures confirm that you’re not receiving personal legal representation,”
Newton says. “And that can create a serious conflict of interest.”
He continues:
“I call this a license to mislead – I highly doubt timeshare owners would be comfortable
taking legal advice from an attorney who is legally obligated to act in the best interest of
the exit company—especially when they’re the ones paying for it.”
What Real Legal Representation Looks Like
A true attorney-client relationship means more than just hearing a lawyer’s name
mentioned during the sales pitch. It requires:
● A signed contract or clear agreement specifying the scope of services provided
● Legal advice given directly to the client for their individual situation by a licensed
lawyer
● A lawyer who is legally bound to act in the client’s best interest
Without this formal structure, an attorney has no ethical or legal obligation to the
timeshare owner—even if marketing materials suggest otherwise.Without a direct
attorney-client relationship, consumers may lose access to key legal protections,
including objective legal advice, confidentiality and undivided loyalty.
“This is a critical distinction,” Newton added. “Most companies have legal
representation. The timeshare owner who pays them, does not. Our model reverses
that dynamic and gives the power back to the owner.”
When “Legal” Marketing Becomes Illegal
Worse still—some companies don’t use attorneys at all.
A federal court case against a major exit company highlighted the problem. The exit
company in this case advertised “legal timeshare cancellations” and allowed sales
representatives and non-attorney staff to interpret contracts and claim they could cancel
timeshares. The federal judge in this case found that consumers were misled into
thinking they had legal protection, that the exit company had engaged in the
unauthorized practice of law, and these actions violated consumer protection laws.
“That federal judge’s findings and memorandum is a turning point,” says Newton. “It
confirms what we’ve seen for years—owners are being misled into trusting processes
that aren’t legal, safe, or in their best interest.”
Red Flags to Watch Out For
Certain marketing phrases should immediately raise concerns. These include:
● “Attorney Led Exits or Attorney Backed Exits”
● “We have a team of legal experts” (who are not attorneys)
● “You don’t need your own lawyer”
●”Our document team is trained to find legal loopholes”
In many cases, the so-called experts are non-lawyers, and the attorneys, if involved at
all, represent the exit company—not the consumer.
Smart Questions to Ask Before You Sign
Before agreeing to any service, owners should ask:
● Will I have a lawyer that represents me personally?
● Can you show me where that’s written in the agreement?
● Will I receive a Letter of Representation?
● Who is doing my contract review—an attorney working for me, or someone
working for the company?
If clear, direct answers are not provided, it’s time to walk away.
The Truth Behind the “Money-Back Guarantee” Myth
Many timeshare exit companies advertise "money-back guarantees" to entice
consumers and gain their trust, but these promises are often more of a marketing
gimmick than real protection—giving owners a false sense of security. In reality, most
companies spend your money immediately, turning your payment into an interest-free
loan. If too many clients request refunds at once, the company typically cannot cover
them—leading to collapse or bankruptcy. Worse yet, many simply file for bankruptcy
protection and re-emerge months later under a new name, leaving previous customers
stranded without recourse. A simple online search of exit company owners or staff
names often reveals a troubling pattern: ties to failed companies that left clients without
exits or refunds. Don’t be misled by lines like, “If we don’t get you out—you don’t pay,”
or “Don’t worry about how we do it—we guarantee it.” These slogans are designed to
distract you from the real question you should be asking: How, exactly, will you work to
end my ownership? A money-back guarantee is not a service—it’s a marketing ploy. As
Newton Group President Gordon Newton warns, “In the past few years, over 20
timeshare exit companies have shut down operations and/or filed for bankruptcy
protection—leaving tens of thousands of timeshare owners still on the hook for their
timeshares, and with no refund, despite having written money back guarantees.”
The S.S. Timeshare Exit Titanic Sinks With The Money Back Guarantee
Imagine a company offering a three-year money-back guarantee. Thousands of owners
sign up, trusting that promise. But as the deadlines approach and refund requests flood
in, the company, having overextended itself, cannot pay. It sinks under its own
promises, files for bankruptcy, and leaves its clients stuck with their timeshares and no
way to recover their money.
This isn’t fiction—many large exit companies have filed for bankruptcy, leaving tens of
thousands of clients with their timeshare and out the money they paid them.
Don’t Focus on the Guarantee—Focus on the Service
Newton emphasizes that guarantees should not replace a critical review of the services
offered.
“Many companies distract consumers with refund promises, rather than explaining what
they actually do,” Newton says. “It’s one of the most common mistakes we see
consumers make when shopping for an exit company.”
Newton Group: Setting the Standard for True Legal Representation In The Exit Industry
Newton Group stands apart as the longest-standing name in timeshare exit, providing:
● Independent legal representation for every client
● Transparent, enforceable contracts without hidden gimmicks
● A proven, personalized process that has helped more than 30,000 timeshare
owners
Newton states –“Our clients aren’t buying the hope of a refund, they’re hiring a team of
professionals committed to helping them.”
Bottom Line
Timeshare exit is not a marketing slogan—it’s a legal process. If your exit company
can’t guarantee you real legal representation, and instead relies on vague attorney
language or misleading money-back guarantees, you may be setting yourself up for
even greater disappointment.
“Many timeshare owners tell us they felt misled when they bought their timeshare—and
now, they’re feeling misled again by the exit companies claiming to help them get out,”
says Newton. “It’s a pattern that’s harming thousands of people, and it’s unacceptable.”
At Newton Group, that cycle ends.
“Timeshare owners deserve more than sales pitches and misleading language,” Newton
concludes. “They deserve real protection. Real advocacy. And real results. That’s what
we provide and why we’ve been able to help timeshare owners for over 20 years.”
To learn more or download your free copy of The Consumer’s Guide to Timeshare Exit,
visit www.newtongroupexit.com.