The 3 Most Common Timeshare Cancellation Options.
Consumer Consulting Group Provides Common Timeshare Cancellation Options
This has been a bad summer for the timeshare industry, and for timeshare owners. The umber of Americans who lost their jobs after the COVID-19 outbreak was at an all time high. As the unemployment rate skyrocketed monthly maintenance fees or mortgages where becoming default or even worse foreclosed.
The reality of timeshare relief options.
Many timeshare owners wished they could just walk away from it. However, there are 10 years plus of damages ranging from credit destruction, lawsuits, and garnishments. If you don’t stay current on your maintenance fees or your loan payment, the timeshare company or timeshare association will pursue the account in collections, legal action, and more.
“If owners are having financial troubles paying their timeshare mortgage, they should contact their timeshare company to see what options are available to them.,” says Mark Anderson, CEO of Consumer Consulting Group. “There are a few timeshare companies offering different forms of relief, including forbearance or refinancing. There are a handful of hardship programs who offer different types of relief programs for medical emergencies.”
It is not uncommon for owners struggling with payments on a timeshare they do not want or cannot use. They wonder how the contracts that bind them to a timeshare for life are even legal.
Across the country people have mixed feelings about their timeshares. Everyday we come into contact with timeshare owners who feel they have been taken advantage of, deceived, or even scammed. Another portion of timeshare owners fall into an economic hardship category. The ability or the desire to pay for a 10 year timeshare loan is an ever growing hole in any family budget. Even with the timeshare debt with interest rates over 100% in Total Interest Payments some owners are still convinced they can sell it for a profit, or at least break even.
With hopes of reselling the timeshare owners continue to pay their timeshare mortgage until they go to eBay and view their timeshare for sale for $1. The immense feeling of depression, and anger set course leaving the whole family stressed and rushing to find solutions. Paying double fee’s for financing, lifelong maintenance, and random assessments leaves any family budget open to dramatic changes typically negative ones.
The 3 Most Common Timeshare Cancellation Options.
The options below have been the most common for over 16 years. The timeshare relief industry is fairly new. However, contract disputes, debt negotiation, credit management, and consumer defense are regulated by the financial industries in the United States. Consumer Consulting Group is regulated by the Department of Financial Regulation in the State of Florida, and by the Federal Trade Commission.
There are three ways to get out of timeshare in normal times:
1. Sell it or transfer to friends and family.
Long as your timeshare is paid off and all maintenance bills are current you have this option. Contacting your timeshare company and requesting the proper documentation to transfer the ownership to a friend or family member costs $200-$1500 depending on your situation. However, in the future your close friend or Aunt Cathy may never forgive you due to passing on your lifelong burden of maintenance bills. Some people say only my worst enemy qualifies for timeshare transfers.
2. Walk away from it.
If you have made the decision to cancel or get out of your timeshare then walking away from it maybe an option. This means stop paying, stop talking to them, and no usage. This action or lack of action is risky and within short time the timeshare company will come after you. Each case is different and each has their own levels of risk. A paid off timeshare with a $250 year maintenance bill will not be pursued as much as the $100,000 mortgaged timeshare bought last year.
Please not we do not encourage anyone to stop paying or stop communicating with their creditors. There is a proper dispute, and negotiation stage which allows the ceasing of payments. Stopping payment will results in damaged credit, potential foreclosure, and lawsuits. However, if you lost your job, and can barely put food on the table the options are limited.
3. Hire a professional.
This is necessary if you’re outside the rescission period — a cooling-off period that allows you to cancel the purchase without penalty — and believe you have a legal cause of action against your developer. But make sure you consult with a professional and understand exactly what you’re getting.
- Is the firm going to fight for you?
- Do they have a credit management team to aid in the disputing of accounts, and credit monitoring?
- Are they licensed organization which can be held accountable?
Legal document drafting and delivery is a complex task and must be conducted uniquely based upon the clients situation. So make sure the firm can provide you with a online portal, or USPS certified tracking for disputes and negotiations done on your behalf.
How to avoid being scammed by a timeshare exit company.
One thing about getting out of a timeshare hasn’t changed. There are thousands of timeshare resellers and rental brokers promising to sell your timeshare. The Federal Trade Commission issued a recent warning against timeshare resellers, noting that some of them prey on seniors by taking money up front and then failing to sell the timeshare.
“Never hire someone without checking out their background first and never pay an up-front payment before any services are provided,” says FTC spokesman Mitch Katz.
“Right now, there are hundreds of pop up timeshare resellers and exit companies charging thousands of dollars and delivering zero results, “says, Mark Anderson. “Over a 20 new companies opened since the start of the pandemic. Many of these companies have no experience in the timeshare exit business. It is a fact, if the timeshare exit program, timeshare exit company, timeshare lawyer, or consumer advocate does not have verifiable professional experience in consumer credit management, risk management, consumer defense, general retail contract disputes, legal document drafting, and debt collection defense experience the results will be unfavorable. and there is no regulation to stop anyone from opening a timeshare exit company.”
Only trust a company with licensing for accountability, credit reporting knowledge, and can share specific contract cancellation strategy, he says.
“There are so many scams out there in the timeshare exit industry, its truly sad” he adds.
How do you know if a timeshare exit company is legit?
You should ask these questions about any company you’re thinking of hiring:
What are the specific strategies and techniques do you use to eliminate timeshare contracts?
Do you management my credit? If so, how and when?
What kind of guarantees does it offer and how can it back up the promise?
Do you cancel credit cards, personal loan accounts, and timeshare mortgages outside of the developer?
What licensing does your company have that is relevant to timeshare cancellation?
Do you handle every aspect of the case?
These questions must be answered clearly and verifiably. If not, your risk of being scammed is high. Accountability, and real strategy cannot be identified if these questions are not answered and explained. The shady salesman, or vague responses are a red flag. If a company has payment plans, make sure they are backed by a bank and not in-house financing only. If a bank provides a direct financing program for the exit program and it is not an affiliate or referral loan then you may have found a solid solution to your timeshare cancellation.