Aruba TS Contract, Need help

[ArubaTS]

I have searched TUG extensively and haven't found a situation that is similar to mine, so maybe someone can give me some advice on how to proceed. On Sept 1, 2008 I purchased a TS from the developer at of course a high price (14k). The TS is in Aruba, the contract clearly states it is governed by Aruban Laws. I came home to the USA about 4 days later searched online and found out the bad news. The read through the contract and there was no rescission clause. I called the sales office in Aruba and they said there is no rescission clause, but send a letter to their corporate offices in the US and they will let you out of the contract, but you will lose your 10% deposit and first years Maint Fees ($700). I disputed the charges on the credit card and sent a letter of rescission to both the developer in Aruba and their corporate offices here in the states less than a week after purchasing. The corporate office is where you send your monthly payments and has their collections offices. The lawyer for the developer took a month to reply via US MAIL and they said there is no rescission clause and you will not be let out of the contract.

Another month passed and I contacted her via phone to find out what the status is on this issue and what my options are. She said the bank has withdrawn the funds from their bank account due to the dispute and they are telling the bank their (the developers) side of the story. The developer is now willing to let me out of the contract if I give them my deposit back. I asked them about the first years Maint fees since that is separate from the deposit and she said that will be decided when they receive the deposit (Basically, probably won’t get it back).

I take it as a good sign the bank withdrew the funds, but my other concern is how my credit can be affected by this. Can a foreign contract under Aruban Laws be used to damage my credit? As far as I know and I have spoken to a few non official sources these are US credit agencies. If the TS was in the states I know I would be screwed. I was willing to give the deposit back to get me out of the contract, but it looks like the bank may side with me. Next month is when the credit dispute will be resolved and a decision made, so I am planning to hold out until then.

Can anyone offer any advice or anyone in a similar situation?

 

[Talent312]

They did not have to let you out of the "K"... They could have have sued you for the total purchase price, so I'd say that, not only are you getting out "cheap," but getting away with cheating them out of a bona-fide contract (no matter how foolish you were to sign)... "Buyer's remorse" is not a valid defense for your breach of contract.

Bottom line: Take them up on their offer, write off the MF's (chalk it up as the price of your own foolishness), and thank your stars that you aren't going to be served with a lawsuit.

 

[Jennie]

Did you confirm with the Aruban authorities that there is no law requiring a rescission period for a timeshare purchase? Every state in the U.S., and all the countries in the European Union, have laws requiring that parties purchasing a timeshare have a "cooling off" rescission period, usually between 5 and 14 days. This information must be prominently displayed in the contract, close to where you sign the agreement, and must specify the method to be used to exercise this option (e.g. by mail, fax, etc...).

It is a common scam in Mexico to not give the buyer this required information in writing, or to have them sign a phony waiver of their right to rescind. If this occurs, the Mexican government has an official agency (Profeco) that goes after the developer and assists the American victim in getting a full refund.

I have no idea whether or not Aruba has similar laws but find it hard to believe that they would be so out of step with what is common practise in so many other countries.

If you haven't already checked this out, do so asap. There may be someone in an Aruban government agency that can assist you. If the resort has lied to you, the minute an official investigation (or threat of one) begins, I'm sure they will rush to settle the matter with you.

When exactly did you first let the resort know that you had changed your mind? How many days after you signed the contract? The timeframe is a little unclear from the way you posted your question. Does your contract specificaly state that there is no rescission allowed. Or does it just fail to address the issue altogether? It may exist and they may have deliberately withheld it from you. Again, that's a very common scam in Mexico.

 

[ArubaTS]

I haven't contacted the Aruban government yet, that will be my next step.

I sent the letter in 5 days after I signed the contract. Emailed, faxed, and certified mail.

Did you confirm with the Aruban authorities that there is no law requiring a rescission period for a timeshare purchase? Every state in the U.S., and all the countries in the European Union, have laws requiring that parties purchasing a timeshare have a "cooling off" rescission period, usually between 5 and 14 days. This information must be prominently displayed in the contract, close to where you sign the agreement, and must specify the method to be used to exercise this option (e.g. by mail, fax, etc...).

It is a common scam in Mexico to not give the buyer this required information in writing, or to have them sign a phony waiver of their right to rescind. If this occurs, the Mexican government has an official agency (Profeco) that goes after the developer and assists the American victim in getting a full refund.

I have no idea whether or not Aruba has similar laws but find it hard to believe that they would be so out of step with what is common practise in so many other countries.

If you haven't already checked this out, do so asap. There may be someone in an Aruban government agency that can assist you. If the resort has lied to you, the minute an official investigation (or threat of one) begins, I'm sure they will rush to settle the matter with you.

When exactly did you first let the resort know that you had changed your mind? How many days after you signed the contract? The timeframe is a little unclear from the way you posted your question. Does your contract specificaly state that there is no rescission allowed. Or does it just fail to address the issue altogether? It may exist and they may have deliberately withheld it from you. Again, that's a very common scam in Mexico.

 

[ArubaTS]

The contract fails to even address a rescission.

 

[Blondie]

and that would be because they don't want you to do it.

 

[Talent312]

and that would be because they don't want you to do it.

There ought to be a liberal return policy for these things ("Satisfaction Guaranteed") like at Wal-Mart or Target, enforced by the government. But apparently, there's no Arubian law which gives a buyer that right. So, if the resort won't let him out of sheer kindness, there's not much the buyer can do, other than whine about it here. The resort may be sensitive enuff to want to avoid the bad publicity. Its worked before.