$12K Timeshare Traps Owner As Federal Officials Warn Selling Can Be Nearly Impossible

A $12,000 timeshare purchase that was supposed to provide years of vacations instead became a costly financial burden for one owner who struggled to get out of the contract. Joyce Orecchia purchased a timeshare in Las Vegas for $12,000. Over time, however, the ongoing costs became difficult to justify. Her annual maintenance fees eventually rose to more than $1,000, adding another expense to an ownership arrangement she no longer wanted. Orecchia said she contacted Hilton Grand Vacations in 2024 to ask whether she could return the timeshare. She was reportedly told that she would need to purchase additional timeshare interests costing approximately $15,000 in order to get out of the arrangement.

Trying To Escape The Timeshare

After struggling to find a way out, Orecchia turned to companies that claimed they could help her exit the timeshare. She ultimately paid approximately $6,700 upfront to Consumer Edge Travel Solutions and Liberty Consultations. She received paperwork stating that the transfer would be completed within 365 days. Instead, the process dragged on for roughly two years while she continued to own the timeshare and remain responsible for associated expenses. The companies involved blamed delays on Hilton and paperwork issues. Hilton disputed that explanation and said incomplete paperwork submitted by a third party contributed to the delays. Eventually, the transfer was completed, allowing Orecchia to finally get out of the timeshare. However, she did not recover the $12,000 she originally paid for the ownership, and she had also spent thousands of dollars attempting to resolve the situation.

Feds Warn About Timeshare Resales

The Federal Trade Commission warns consumers that selling a timeshare can be difficult because there are often many owners trying to sell their interests. The agency cautions consumers to be skeptical of companies that promise they can quickly sell a timeshare, guarantee a buyer or claim that an owner will make a significant profit. Another major warning sign is a company demanding thousands of dollars upfront for supposed advertising, taxes, closing costs or other fees. Consumers can end up paying substantial amounts to a company without ever finding a legitimate buyer for their timeshare.

Exit Companies Can Add More Costs

Federal officials have also taken action against companies accused of misleading timeshare owners who were already trying to get out of their contracts. In one recent case, a federal court ordered the operator of a timeshare exit operation to pay $140 million following allegations that consumers were misled into paying for exit services. The order included $95 million in consumer redress and a $45 million civil penalty. The Federal Trade Commission advises consumers to be particularly cautious when an exit company demands a large upfront payment, guarantees that a timeshare contract will be canceled or tells an owner to stop making required payments.

What Buyers Should Know

The FTC recommends that consumers calculate the total cost of a timeshare before purchasing one. That can include the initial purchase price, annual maintenance fees, taxes, exchange fees and other recurring expenses. Maintenance fees can increase over time, and owners can remain responsible for those costs even if they stop using the property. Consumers considering a timeshare should also understand the company’s cancellation, transfer and resale policies before signing a contract. For existing owners who want to sell, the FTC warns against assuming that they will be able to recover the amount originally paid. Promises of guaranteed buyers, fast sales or large profits should be treated with caution. Orecchia’s experience highlights how expensive a timeshare can become after the initial purchase. What began as a $12,000 vacation ownership purchase eventually involved rising maintenance fees, an attempted additional $15,000 purchase and thousands of dollars paid to third parties before she was finally able to exit the arrangement.