Best Practices

The Hidden Dangers of Timeshare Exit Companies Using Escrow Accounts

Explore the risks of timeshare exit companies using escrow accounts. Learn why they're often red flags and how to make informed decisions

Disclaimer:  Before you talk to any attorney or exit company regarding a timeshare exit, your first step is to contact your resort directly to see if they have an exit program that fits your needs.


In the world of timeshares, not all exit strategies are created equal. While many timeshare owners seek legitimate ways to exit their contracts, some companies prey on their desperation, using dubious methods that can leave owners in a worse financial situation than before. One such method is the use of escrow accounts. In this article, we'll delve into the reasons why timeshare exit companies that use escrow accounts instead of financing the contract with the timeshare owner are often scammers and why they should be avoided.

Timeshare Hidden Dangers

What is an Escrow Account?

An escrow account is a third-party account where funds are held until a specific condition is met. In the context of timeshare exits, a company might ask an owner to deposit money into an escrow account, promising to return the funds once the timeshare is successfully exited. However, not all escrow accounts are used with honest intentions.

The Red Flags of Escrow Accounts in Timeshare Exits

1. The Scourge of Illegal Debt Settlement Fees

The Consumer Financial Protection Bureau (CFPB) has taken action against companies like Global Client Solutions for processing illegal debt settlement fees. Such actions highlight the risks associated with companies that rely on third-party payment processors and escrow services.

2. RICO Allegations and Payment Processors

A class action lawsuit has accused payment processor Meracord of "looting" customers' accounts through fraudulent fees, using a network of "front end" debt relief companies. Such allegations underscore the dangers of trusting companies that use escrow accounts, as they can be a front for more nefarious activities.

3. The Dangers of Misleading Payment Processors

While some details from the article on Rocky Mountain Bank Trust and Global Client Solutions were inaccessible, it's crucial to be wary of companies that change partners frequently or have a history of dubious practices.

4. CFPB's Action Against RAM Payment & AMS

The CFPB has finalized an enforcement action against RAM Payment and Account Management Systems (AMS) for illegally collecting debt-relief fees from student loan borrowers. This action serves as a stark reminder that companies using escrow accounts and third-party payment processors can often have hidden agendas.

Why Trust is Crucial in Timeshare Exits

When seeking to exit a timeshare, trust is paramount. Owners are already in a vulnerable position, and placing trust in a company that uses questionable payment methods only exacerbates the risk. Companies that rely on scammy payment processors and escrow services are often a front for more sinister intentions, charging unsuspecting owners with junk fees and leaving them in a worse financial position.

Conclusion: Choose Wisely and Avoid the Escrow Trap

Timeshare owners must be vigilant and conduct thorough research before choosing an exit company. Relying on companies that use escrow accounts can lead to financial loss and further complications. At, we prioritize transparency and trust, ensuring that our clients are always in safe hands. Avoid the pitfalls of escrow accounts and choose a partner that has your best interests at heart.



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