Table of Contents
01. About Timeshare Exit Team – Washington Based Timeshare Exit Company From 2012 to 2022
02. Customer Experiences and Reviews – F Rating on the BBB and Negative Online Client Feedback
03. Legal and Financial Repercussions – Multi-Million Dollar Settlement with Washington State Attorney General’s Office
04. Closing Thoughts – Overall Rating Review
The journey of Timeshare Exit Team, a company based in Kirkland, Washington, that promised to help timeshare owners exit their contracts, is a tale of high hopes and significant controversies. Initially buoyed by endorsements from high-profile personalities, the company’s reputation came under fire due to allegations of deceptive practices, leading to a slew of legal challenges and eventual closure.
━ About Timeshare Exit Team
Timeshare Exit Team, operating under Reed Hein & Associates, positioned itself as a beacon for timeshare owners trapped in undesired contracts, looking to navigate the treacherous waters of timeshare exit. The company, founded on the premise of offering a lifeline to those caught in the often-complex web of timeshare agreements, gained significant traction and visibility through endorsements by well-known figures like Dave Ramsey and Steve Harvey. These endorsements brought a level of trust and credibility to the company, attracting many customers hopeful for a resolution to their timeshare dilemmas.
➤ Business Model and Strategy
The core business model of Timeshare Exit Team involved charging clients substantial upfront fees for services aimed at facilitating their exit from timeshare contracts. This approach, while not uncommon in the industry, became a point of contention due to the company’s bold promises, including a 100% money-back guarantee if they were unsuccessful in achieving an exit for their clients. This guarantee, however, came under scrutiny as numerous customers reported difficulties in reclaiming their money when the promised results were not delivered.
➤ Legal Challenges and Criticisms
The practices of Timeshare Exit Team attracted the attention of legal authorities, culminating in a significant lawsuit filed by the Washington State Attorney General. The lawsuit accused Reed Hein & Associates of engaging in deceptive and unfair business practices, particularly focusing on their advertising of a 100% money-back guarantee and the failure to fulfill this promise in many cases. This legal battle brought to light the challenges and risks associated with the timeshare exit industry, highlighting the need for greater transparency and accountability.
The lawsuit, along with other legal challenges, underscored a broader issue within the timeshare exit industry, where promises often went unfulfilled, leaving customers out of pocket and still entangled in their timeshare agreements. The fallout from these legal battles and the scrutiny they invited had a significant impact on the company’s reputation and operational capacity, leading to questions about the effectiveness and legitimacy of its services.
➤ The Impact of Endorsements
The endorsements from Dave Ramsey and Steve Harvey initially served as a powerful marketing tool for Timeshare Exit Team, lending it an air of credibility and reliability. However, as customer complaints and legal issues began to mount, the value of these endorsements was called into question. These situations highlighted the potential risks associated with celebrity endorsements in industries where the service outcomes can be uncertain and the financial stakes high for consumers.
━ Customer Experiences and Reviews
The customer experiences and reviews of Timeshare Exit Team paint a complex picture of the company’s interaction with its clients. While some customers reported satisfactory outcomes, a significant number of others faced issues that ranged from unmet expectations to severe financial and legal complications. On platforms like Birdeye, Timeshare Exit Team held a moderate rating of 3.8 stars based on 898 reviews. This rating, at first glance, might suggest a reasonably positive customer experience overall. However, this average rating belies the nuanced and often significantly negative experiences reported by many customers. The distribution of reviews indicates that while some customers were pleased with the service they received, a substantial portion of them encountered problems that deeply affected their satisfaction and financial well-being.
➤ BBB Rating and Complaints
The Better Business Bureau’s (BBB) rating and the volume of complaints against Timeshare Exit Team provide a more troubling insight into the company’s operations. With an “F” rating and over 400 complaints, the BBB’s assessment reflects a pattern of issues that customers faced with the company. These complaints often centered around unfulfilled promises of timeshare exits, exorbitant fees charged upfront without the delivery of promised services, and significant challenges in obtaining refunds. The “Pattern of Complaint” alert issued by the BBB highlighted these issues, underscoring the need for caution among potential clients considering Timeshare Exit Team’s services.
Date of Experience: August 3, 2022 – James D. (BBB Review)
Our disappointment began in 2017. We were told one lie after another, until we started to request the money back after 3yrs. Time frame they had given us was 18mos maybe 24 mos. Once we started demanding the money back, we no longer could get anyone on the phone. We need help desperately need help to get out from under our time share we are now elderly and cannot travel. We could not ever refer this company to anyone. We do not want them to go through what we have experienced.
Initially, numerous customers voiced their dissatisfaction due to the absence of communication and updates about their timeshare exit process. Following the payment of upfront fees, they found themselves enduring extended periods of silence from the company, witnessing scant progress on their cases. Furthermore, the challenge of claiming the advertised money-back guarantee became apparent, as the company resorted to various strategies to circumvent refund issuance. Consequently, this series of events fostered a feeling of betrayal and financial hardship among customers, who felt they had placed their trust and resources in vain based on the company’s assurances.
━ Legal and Financial Repercussions
The legal and financial repercussions faced by Timeshare Exit Team underscore the severity of the consequences for deceptive practices in the timeshare exit industry. The settlement with the Washington State Attorney General’s Office was not just a financial blow to the company but also served as a public indictment of its practices, impacting its reputation and operations profoundly.
➤ Settlement Details and Implication
The settlement required Timeshare Exit Team, operated by Reed Hein & Associates, to pay $2.61 million to the state. This amount was earmarked for providing restitution to consumers who had been harmed by the company’s practices. The settlement also included a conditional penalty of an additional $19 million should the company violate the terms of the consent decree. This aspect of the settlement underscored the legal system’s intent to not only penalize past behaviors but also to deter future violations.
➤ Industry-Wide Impact
The action taken against Timeshare Exit Team by the Washington State Attorney General’s Office served as a significant warning to other companies in the timeshare exit industry. It highlighted the importance of transparency and honesty in business practices, especially in industries where consumers are particularly vulnerable. The settlement was a clear message from regulators that deceptive practices would not be tolerated and that companies engaging in such behavior could expect severe penalties.
➤ Consumer Protection and Awareness
The case against Timeshare Exit Team also had implications for consumer protection and awareness. It brought to light the practices that can prey on timeshare owners looking to exit their contracts, emphasizing the importance of due diligence and caution. Consumer protection agencies and advocates have since used this case as a reference point to educate timeshare owners about the potential pitfalls of engaging with exit companies and the importance of seeking reputable and transparent services.
➤ Financial Strain and Closure
The financial strain imposed by the settlement, combined with the reputational damage, led to the closure of Timeshare Exit Team. This outcome not only affected the company and its employees but also served as a stark reminder to the industry about the potential consequences of failing to adhere to ethical business practices. The closure of such a high-profile company in the timeshare exit industry undoubtedly had a chilling effect on similar businesses operating on the margins of legality and ethical conduct.
━ Closing Thoughts
The story of Timeshare Exit Team serves as a cautionary tale for timeshare owners seeking to exit their contracts. While the allure of a quick exit from burdensome timeshare agreements is strong, the experiences of many customers underscore the importance of due diligence and skepticism toward promises that seem too good to be true. With the company now closed, the focus shifts to learning from this episode to better protect consumers and guide them towards more transparent and reliable timeshare exit solutions.
OVERALL RATING: Closed
To continue educating yourself about the timeshare industry, read more Timeshare Exit Bureau blogs