# Walk away from Mexican timeshare--Royal Sunset



## aArnig (Feb 4, 2019)

Has anyone had recent experience with terminating a membership at Royal Sunset (actually with Promotora Sunset Beach Club) in Cancun. We purchased a membership (not a deeded unit, just a club membership with a right to use) about 10 years ago but we have not use it, just exchanged it with RCI. But now we have other things we prefer to do and would like to stop making the maintenance payments. We paid off the purchase price years ago and are current on our maintenance payments. Looking at the contract it seems as if we can just stop paying maintenance fees in. After two missed maintenance payments it looks like the contract allows them to rescind the contract and apply the penalty of retaining all the money we paid which is fine with us. But that seems to be the extent of the penalty provided in the contract. I would just like to know if anyone else has done this and if my interpretation of the contract seems correct.


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## LannyPC (Feb 4, 2019)

If you search, there's a thread in the Mexican forum about what happens if you stop paying and default on a Mexican timeshare/membership.  A few have posted their experiences.


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## aArnig (Feb 4, 2019)

LannyPC said:


> If you search, there's a thread in the Mexican forum about what happens if you stop paying and default on a Mexican timeshare/membership.  A few have posted their experiences.


Thanks LannyPC. Several people mention just walking away from Mexican timeshares which is what I am thinking of doing. I'd like to know if anyone has done that with Royal Sunset and what the reaction was.


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## kalles (Apr 16, 2019)

I stopped paying my maintenance fees four years later they sent me to a collection agency with double the fines don’t know what to do now!!!


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## Passepartout (Apr 16, 2019)

kalles said:


> I stopped paying my maintenance fees four years later they sent me to a collection agency with double the fines don’t know what to do now!!!


What do they claim is the basis of the collection? If it's just MF and you simply have a Right-To-Use, tell the collection agency to repossess your lack of use. I suppose they can threaten to give you a bad credit report, but if they don't have any collateral and just a contract promising you use with payment, I don't see any teeth to their threat. If (on the chance) they actually ding you on the three credit bureaus you have the right to rebut their claim. I don't think I'd lose any sleep over this. Odds are the resort sold their noncollectable MF bills to the collection agency for pennies, and whatever they can wring out of people who defaulted is theirs. They are notorious for issuing letters, calls and idle threats. If you have a lawyer, have them write a 'Cease & Desist' letter if this continues.

Best Wishes!

Jim


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## easyrider (Apr 16, 2019)

kalles said:


> I stopped paying my maintenance fees four years later they sent me to a collection agency with double the fines don’t know what to do now!!!



Take a look at your credit score. There would have to be a collection reported for this debt that shows up on the credit report. If the collection doesn't show up on the credit report your debt collector is likely bogus regarding a collection on Mexican timeshare maintenance fee. 

A default on the original contract of a Mexican timeshare might be a line of credit from an American bank. In this case the American bank would be reporting your debt and you would see it on your credit report the way you see a credit card. A default on the original contract with a Mexican timeshare that is financed in Mexico would not show up on the credit report without obtaining a judgement in an American Court. 

Bill


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## DrQ (Apr 16, 2019)

kalles said:


> I stopped paying my maintenance fees four years later they sent me to a collection agency with double the fines don’t know what to do now!!!


Is this an external or an internal collections group? Usually the first step is an internal collection group within the company.


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## TUGBrian (Apr 16, 2019)

if its been 4 years, id imagine anything credit wise that was going to happen to you...has already taken place.


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## kalles (Apr 17, 2019)

The credit Collector is Meridian Financial Services based in north Carolina and part of Interval International.  The fees are double the maintenance fees not paid plus all kinds of late charges.  This is so unjust.  Are there timeshare lawyers out there?


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## Passepartout (Apr 17, 2019)

kalles said:


> The credit Collector is Meridian Financial Services based in north Carolina and part of Interval International.  The fees are double the maintenance fees not paid plus all kinds of late charges.  This is so unjust.  Are there timeshare lawyers out there?


What are they basing the MF on? You don't OWN anything, so the 'MF' is just a 'use' fee. I don't know that there is such a thing as a 'timeshare lawyer'. I still maintain that I'd ignore them. As stated earlier, it's been 4 years. Have you received bills/late notices, etc before this threat?


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## kalles (Apr 17, 2019)

No haven't recieved bills, when I called them, they said it's not their obligation to send me bills, I'm suppose to pay my maintenance fees.  I called a timeshare lawyer and they want $2,550.00 up front and $1,000. upon completion.  They also said it's already effected my credit.  Called another firm and I had to give out all this information, but they would not give me a price up front.  I'm not sure who is scaming me at this point.


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## easyrider (Apr 17, 2019)

kalles said:


> The credit Collector is Meridian Financial Services based in north Carolina and part of Interval International.  The fees are double the maintenance fees not paid plus all kinds of late charges.  This is so unjust.  Are there timeshare lawyers out there?



Meridian Financial Services is a third party debt collection service. They are not part of Interval International. Third party debt collectors can include fee's and other costs to the debt once they own the debt. The debtor receives the outrageous bill and will often try to settle for the original amount. In this process the debtor often signs paperwork acknowledging the debt. This makes it easier to go to court for a judgement and extends the time limitations to collect the debt. If you sign anything acknowledging the debt like a promissory note there could be a new time limit set on the debt.

I think these guys bought the debt and are wanting to negotiate the debt with you. They can't force you to pay unless they go to court and get a judgement and a garnishment or lien. 

If your debt is a line of credit through an American Bank for a consumer debt then the debt is enforceable. A membership in a vacation club is consumer debt when purchased with a line of credit through an American lending institution.  

I am not an attorney but have been involved with collecting debt. 

Bill


https://blog.credit.com/2018/07/eleven-ways-a-debt-collector-may-be-breaking-the-law-18624/


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## kalles (Apr 17, 2019)

easyrider said:


> Meridi
> 
> Alerts * 1  *
> an Financial Services is a third party debt collection service. They are not part of Interval International. Third party debt collectors can include fee's and other costs to the debt once they own the debt. The debtor receives the outrageous bill and will often try to settle for the original amount. In this process the debtor often signs paperwork acknowledging the debt. This makes it easier to go to court for a judgement and extends the time limitations to collect the debt. If you sign anything acknowledging the debt like a promissory note there could be a new time limit set on the debt.
> ...


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## kalles (Apr 17, 2019)

Bill, the collection agency states I must dispute the bill within 30 days or the office will assume the debt is valid.  Should I send them a letter disputing it?  Thanks, Kalle


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## kalles (Apr 17, 2019)

I purchased this on ebay from a seller in new york.   Did not finance any of it and only default is my maintenance fees.


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## hurnik (Apr 17, 2019)

kalles said:


> Bill, the collection agency states I must dispute the bill within 30 days or the office will assume the debt is valid.  Should I send them a letter disputing it?  Thanks, Kalle



Debt collection agencies lie worse than sales people (car/insurance), LOL.
Everything should be in writing, IMO, unless you live in a state where you can legally record phone conversations without third party consent.

https://credit.org/2018/03/01/the-state-of-the-fair-debt-collection-practices-act-in-2018/

Not sure if your state has other restrictions/protections.


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## Passepartout (Apr 17, 2019)

Since the collection agency is in the US, you need to contact them and exercise your rights under the Fair Credit Reporting Act. You must require them to produce documentation that you actually owe this debt. If they continue to pursue this without proof, and lawyer with credit experience, can sue them, and they will be forced to pay him/her $1,000 in fees.

This according to my family law/bankruptcy/elder Law practicing wife.


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## easyrider (Apr 17, 2019)

kalles said:


> Bill, the collection agency states I must dispute the bill within 30 days or the office will assume the debt is valid.  Should I send them a letter disputing it?  Thanks, Kalle



You can dispute the debt at any time. It doesn't have to be disputed within 30 days of the collection notice. It doesn't matter what the collection company assumes. Their assumption doesn't make the debt valid. They need you to sign documents to validate the debt or get a judgement. To get you to sign a note they would be willing to drop many or all of the fee's associated with the collection because they paid very little for this debt. 

In the first 30 days after receiving the notice you could require the collection agency to prove the debt exists. If you look on your credit report you can see if there are any judgement , foreclosure or collections on your report. If you dispute the debt by mail or phone and if it gets reported it has to be reported as "disputed".

I really don't know what you should do. There are many things to consider. 

Jim makes a good point in his above post. 

What timeshare developer is going after you for maintenance fee's ?   

Bill


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## kalles (Apr 18, 2019)

Sunset lagoon & yacht club sister timeshare with royal sunset


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## bankr63 (Apr 18, 2019)

One thing I would suggest is checking your credit rating yourself.  I know the lawyer said it had already affected your Credit Rating, but I don't see how he could know.  The only people who can see your rating is yourself or a financial institution.  The bureaus have to provide you with a report for free, or if you like, there is an app for that.  Credit Karma (pretty sure it's available in the US too) gives you a bi-weekly update on your credit rating.  That allows you to monitor and see if it ever hits your rating.


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## kalles (Apr 18, 2019)

bankr63 said:


> One thing I would suggest is checking your credit rating yourself.  I know the lawyer said it had already affected your Credit Rating, but I don't see how he could know.  The only people who can see your rating is yourself or a financial institution.  The bureaus have to provide you with a report for free, or if you like, there is an app for that.  Credit Karma (pretty sure it's available in the US too) gives you a bi-weekly update on your credit rating.  That allows you to monitor and see if it ever hits your rating.


I did check thanks it’s 822 so I don’t think they reported it yet???


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## Passepartout (Apr 18, 2019)

kalles said:


> I did check thanks it’s 822 so I don’t think they reported it yet???


As I said in#17. Write and tell them you are exercising your rights under the Fair Credit Reporting Act and for them to PROVE that you owe the debt. Like some promissory note signed by you. Then go from there if they produce something- which I doubt they can. That may be the end of it. They have bought the debt from the resort for a few cents and whatever they can collect is their profit.

Good Luck!

Jim


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## kalles (Apr 18, 2019)

Passepartout said:


> As I said in#17. Write and tell them you are exercising your rights under the Fair Credit Reporting Act and for them to PROVE that you owe the debt. Like some promissory note signed by you. Then go from there if they produce something- which I doubt they can. That may be the end of it. They have bought the debt from the resort for a few cents and whatever they can collect is their profit.
> 
> Good Luck!
> 
> Jim


Thanks will do


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## easyrider (Apr 18, 2019)

kalles said:


> Sunset lagoon & yacht club sister timeshare with royal sunset



Tell the collection agency to quit calling you as you are disputing the debt. Sunset Lagoon has to get a judgement for this debt. The collection agency will not be able to get a judgement in the USA unless you sign documents acknowledging the debt and Sunset Lagoon can not get a judgement in the USA because they are a Mexican company doing business in Mexico. International debt is not enforceable in the USA for the most part. 

Sunset Lagoon could get a judgement in Mexico that would affect your Mexican credit score. They can't report on your credit in the USA for debt in Mexico from what I read. 

When you dispute the debt give out no other information other than you are disputing this debt.

Just so you know, I could be wrong but I doubt it. I am not an attorney.

Bill


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## geist1223 (Apr 18, 2019)

Heck they probably can not produce a signed Promissary Note. Many Banks had a problem providing one on Houses for  foreclosures during the Recession because loans were resold so many times.


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## bankr63 (Apr 25, 2019)

kalles said:


> I did check thanks it’s 822 so I don’t think they reported it yet???


Wow, 822/900 for a FICO is an excellent range score.  There won't be any black marks on your credit report, so I would be suspicious of that lawyer who said it was impacting on your rating; that is just fear mongering.

And to be clear, the ONLY place I think that this can appear on your Credit Report is under the Public Records section; you'll know long before, because a court proceeding will be required.  It will not appear in your revolving Accounts section because it is not that type of obligation, and if it was not registered in your Installment section (car and property loans) back when you signed on, then it won't be now.  It does not qualify for the Mortgages section.  I am fairly certain that to report under the Collections section that the debt has to already be reporting in one of the previous sections of your report.  So again, the only way that I can see it hitting your bureau is if they take you to court and obtain a judgement.

However, this advice is free and is worth what you paid for it.  It is also based on my knowledge of Canadian banking; reporting may differ somewhat in the US as your financial laws are different (but generally more to your benefit as others have pointed out).  Just be cautious what you do.  I don't think you can dispute the debt as suggested however.  Who do you dispute it with if it hasn't been reported/recorded anywhere?


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## freechoice88 (Sep 21, 2019)

aArnig said:


> Thanks LannyPC. Several people mention just walking away from Mexican timeshares which is what I am thinking of doing. I'd like to know if anyone has done that with Royal Sunset and what the reaction was.


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## freechoice88 (Sep 21, 2019)

Hello...I haven't paid since January 2019...rs sent me a notice that I owe mf and a five year renovation fee? Any suggestions to 
there wasn't any mention of the five year fee on January but now rs wants mf and a five year renovation fee? Thanks any suggestions?


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