The Washington State Attorney General’s Office announced a major consumer protection victory in February 2025, with Kirkland-based timeshare exit company Reed Hein & Associates LLC agreeing to pay $2.61 million to resolve allegations of deceptive business practices related to its timeshare exit services.
The settlement stems from a lawsuit first filed in 2020 by Washington Attorney General Bob Ferguson, which accused Reed Hein of misrepresenting its abilities and guarantees to thousands of timeshare owners. The Attorney General’s Office will use the payment to provide restitution to harmed consumers and to help reimburse litigation costs.
Deceptive “100 % Money-Back Guarantee”
A central issue in the lawsuit was Reed Hein’s claim of a “100 % money-back guarantee,” which it advertised to prospective customers as a risk-free way to exit timeshare contracts. In practice, many customers who paid thousands of dollars in upfront fees — often between about $3,000 and tens of thousands — were unable to obtain refunds even after waiting years for results.
The Attorney General found that Reed Hein’s refund policy was misleading because it allowed the company to consider a foreclosure or other termination as an “exit,” effectively sidestepping obligations to issue refunds. In some cases, consumers saw their credit scores drop or faced other financial consequences while still owing maintenance fees on the timeshare.
Reed Hein’s Required Changes
Under the consent decree, Reed Hein must:
- Immediately stop certain advertising and sales claims about forcing resorts to accept exits or guaranteeing success.
- Discontinue unfair or deceptive exit practices, including transfers made without resort consent.
- Disclose key business practices to customers, such as outsourced vendor assistance.
- Set aside at least 20 % of customer payments to ensure funds are available for refunds.
- Provide clear refund options when exits are not completed within a reasonable timeframe.
Reed Hein also issued a formal retraction and apology for previous public statements challenging the AG’s lawsuit.
Scope of the Harm
More than 2,800 Washington residents entered contracts with Reed Hein, and the company at one point contracted for over 41,000 timeshare exit cases across North America, with thousands still unresolved for three years or longer. Many of those customers allege they were given incorrect guidance — such as being told to cease payments to the timeshare resort — and later found they remained financially responsible for their contracts.
The Better Business Bureau had assigned Reed Hein an F rating, and the AG’s office received 283 consumer complaints highlighting ongoing problems with the company’s services.
Restitution and Next Steps
Consumers impacted by Reed Hein’s practices will be eligible to receive restitution based on the number of claims and the severity of harm. The Attorney General’s Office has advised potential claimants to contact the restitution email address provided in the consent decree or wait for direct outreach using contact information previously supplied by Reed Hein.
What This Means for Timeshare Owners
This settlement underscores the importance of skepticism toward timeshare exit companies that promise guaranteed results or risk-free services without clear, enforceable terms. Reed Hein’s case serves as a stark reminder that unrealistic guarantees and opaque refund policies can lead to significant financial harm — even when advertised as consumer-friendly solutions.
