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Escrow is a proven solution to scams in the timeshare industry. The payment systemis beneficial totimeshare owners and timeshare exit companies alike in that itprotects the interest of both parties. With escrow, a timeshare exit company has the assurance of getting paid for its service, and a timeshare owner has total control over their service fee until the timeshare exit company successfully cancels their timeshare contract.

But what exactly is escrow, how does it work in the timeshare exit industry, and of what importance is it?

Escrow Explained

Escrow is a payment option wherein two parties involved in a transaction agree to keep a certain amount of money (service fee) in a verified third-party account until a defined goal is achieved.If you use escrow for your timeshare cancellation, it means thatyou and a timeshare exit company consent to keeping the service charge in a third-party account while the timeshare exit company pursues the cancellation ofyour timeshare contract.If the timeshare exit company succeeds in terminating your timeshare contract as agreed, you then release the money in escrow to the company. Otherwise, the money is returned into your account.

Think of escrow as a mutual decision between you and a timeshare exit company to ensure service guarantee and payment safety.That is, with the escrow system, you can rest assured that the timeshare exit company you hire will not receive any payment except it gets you out of timeshare maintenance fees totally. Similarly, escrowhelps timeshare exit companies get their service fee without any hassle.

You might be wondering what happens if a timeshare owner attempts to deny a timeshare exit company its payment after cancelling their timeshare contract. This is quite simple. The timeshareexit company files a dispute to the third-party company in possession of the money, including evidence that the client’stimeshare contract has been cancelled.Upon confirmation of the claim, the money in escrow is released to the timeshare exit company.

Importance of Escrow to Timeshare Exiting

We have established how escrow protects timeshare owners and timeshare exit companies. Other benefits of escrow include:

  • Escrow is Better and More Secure than 100% Money-Back Guarantee – Escrow vs 100% Money-Back Guarantee

It is very common to see timeshare exit companies promise timeshare owners a 100% refund if they cannot complete the cancellation of their timeshare contract. However, most of those companies do not fulfil their promise, leaving timeshare owners with no option than to file a suit to get a refund. Unfortunately, there is a limit to how a lawsuit can help timeshare owners get their money back from a defaulting timeshare exit company.A timeshare exit company can declare its operations bankrupt. And when this happens, there is a slim chance that timeshare owners will get a full refund – if they get any at all.

The way out? Escrow! With the escrow payment system, the service fee you pay does not go into the account of the timeshare exit company. Rather, it goes into a third-part account where it remains till the timeshare exit company finally terminates your timeshare contract.And if the company fails to do so, you are a few clicks away from getting your money back.

  • Escrow Motivates Timeshare Exit Companies

The fact that, with escrow, the completion of a timeshare cancellation validates payment is enough to keep timeshare exit companies on their toes to achieve success as soon as possible. This not the case if you pay an upfront fee. A timeshare exit company that accepts an upfront fee might take your case with levity since the company has nothing to lose. In fact, some companies might abandon your timeshare exit case totally after you pay an upfront fee.

  • Escrow Guarantees Legitimacy and Financial Buoyancy

Considering how escrow works, there is no doubt that any timeshare exit company that accepts the payment method is legitimate. This, however, is not to say that all companies that accepts an upfront fee rather than use escrow are scam. There are legitimate timeshare exit companies that charge an upfront fee.

In the same vein, escrow allows you to demonstrate your financial buoyancy since you will be required to pay the full service charge into a third-party account.This alone can spur the timeshare exit company handling your case to complete the termination in record time.


There is no doubt that escrow is safer than 100% money-back guarantee. Hence, we strongly recommend you hire a timeshare exit company that uses escrow for payment to avoid being scammed. In the absence of escrow, you may opt for a highly-rated company that charges low upfront fee. Please, contact us for more enquires about the escrow payment system.