Bought into a vacation club and missed the 5 day window

[victoriakathleen]

My husband and I have just returned from Playa del Carmen where we ended up stupidly buying into Leading Vacation Club membership with the Reef 28. We were supplied with drinks and were highly pressured into buying. Major buyers remorse. Completely ruined our trip for my 40th. They wanted 30% down of 17000 which we could not afford so they “loaned us” a portion. I paid 2300 USD but my card was charged at an exuberant exchange rate- came to 3600 Canadian. We will have a monthly payment of 361 USD for 9 months and then 211 payment for the next 54 months. They told us we could cancel anytime, and it was a vacation club, not a timeshare. They said if we cancel we just loose our credits and benefits. Looking over the contract now and I see in order to get out we need to pay 30% + any perks used. Is there anyway out of this without tanking my credit? We can’t afford it. The club comes with 5 weeks a year at their 3 resorts and RCi and they gave us travel credits for airfare. These credits seem to be a scam. They sold us a dream of travelling the word, saying we could sell our weeks and that they could even sell our weeks for a small fee. We have received nothing for what we paid- is there anyone that has advice. Thanks in advance

 

[jp10558]

I think you're stuck if you missed the window to rescind. The loans will tank your credit if you don't pay, well at least your credit card would. International loans are less obvious to me. Maintenance Fees / ongoing fees you can often ignore but loans are credit affecting.

 

[WorldT]

If you think the membership club can provide you the vacation stay at a reasonable price then you may just want to learn how to maximize what you have. If that does not apply, then read on.

You are past the recision period so your down payment is gone. Put that down as lesson learned. You have to pay your credit card bill if you don't want the problems that comes with that.

As for the rest of the "loan", you bought a membership to a club. Stop paying and it will go away. Make sure to cancel your card and specifically block the merchant to prevent future charges. The rest of the "loan" should not affect your credit. Mexican membership clubs are not able to submit information to Canadian credit bureaus. If it somehow manages to slip through, contest it.

Under NO circumstances should you pay any money to anyone who promises to "help" you. If you do, you just wasted more money.

 

[victoriakathleen]

Thanks for your advice. I will pay my credit card off but I just don’t want to pay the rest of the loan. I will cancel my credit card so when they try to take the payments they will not go through. I am worried as the loan company Schmoa is an American company and that they may try to come after me. I’m so broken by this.

 

[T-Dot-Traveller]

Thanks for your advice. I will pay my credit card off but I just don’t want to pay the rest of the loan. I will cancel my credit card so when they try to take the payments they will not go through. I am worried as the loan company Schmoa is an American company and that they may try to come after me. I’m so broken by this.

You are past the recision period so your down payment is gone. Put that down as lesson learned. You have to pay your credit card bill if you don't want the problems that comes with that.

As for the rest of the "loan", you bought a membership to a club. Stop paying and it will go away. Make sure to cancel your card and specifically block the merchant to prevent future charges. The rest of the "loan" should not affect your credit. Mexican membership clubs are not able to submit information to Canadian credit bureaus. If it somehow manages to slip through, contest it.........

Hi @victoriakathleen and welcome to TUG.
Mexico - USA & Canada all have different credit bureau's - so since you are Canadian and Schmoa is American ; this should add a barrier .

Please be aware that a collection agency can try to collect ( ie bully you using fear & threats ) . This does not mean they can report
anything to Canadian Credit Bureaus .

Please be aware that it is not uncommon for " debts " to be sold and resold for pennies on the dollar. If this occurs you might again receive
harassing contact months later from a new slimy source. I would suggest blocking contact.

As @WorldT stated - you will need to address your Canadian Credit Card situation.

 

[WorldT]

I tried looking up Schmoa and I couldn't find them. In any case, if they are American, the same thing I and @T-Dot-Traveller said holds. Someone will call or email you at some point to threaten you. I wouldn't worry about it. I wouldn't even respond at all.

 

[victoriakathleen]

I realize I typo-ed the financing company. It is SCHONAUSA. Seem to only finance resorts. I don’t know if that changes anyone’s thoughts. I have requested a new credit card and blocked the merchant, I do hope they will just take my $3700 (for nothing) and leave me alone.

 

[Passepartout]

I think you are out what you have already paid them. Just pay off the existing card debt as soon as possible. It has been an expensive lesson, but I think your credit is safe. Block any calls, cancel the credit card, and destroy any mail you get from them or a collector.

As bad as this is, you are financially better off than you would have been paying the whole thing off and found that it was a rip-off.

I wish you'd have found us before your Mexican holiday. We'd have happily enlightened you before you made an expensive mistake.

Jim

 

[davidvel]

You can always dispute the charge on your CC, it can't hurt. Say that they got you intoxicated/drugged, and did not have capacity to agree to transaction. I would at least go this route before you pay it off.

 

[TUGBrian]

do you still have access to your contract? is it digital?

 

[victoriakathleen]

Yes I have a copy but not digital

 

[TUGBrian]

thats ok, is it ridiculously long? i was hoping if it was digital it could easily be searched...but with it being written it makes that much harder given how most of them are similar to stereo instructions!

 

[victoriakathleen]

thats ok, is it ridiculously long? i was hoping if it was digital it could easily be searched...but with it being written it makes that much harder given how most of them are similar to stereo instructions!

19 pages! What were we thinking?! Lesson learned

 

[TUGBrian]

well if you get bored and want to read it line for line id be curious if you find the word alcohol in it somewhere....likely somewhere near the disclaimer part of the signature page.

 

[James_Bond007]

My husband and I have just returned from Playa del Carmen where we ended up stupidly buying into Leading Vacation Club membership with the Reef 28. We were supplied with drinks and were highly pressured into buying. Major buyers remorse. Completely ruined our trip for my 40th. They wanted 30% down of 17000 which we could not afford so they “loaned us” a portion. I paid 2300 USD but my card was charged at an exuberant exchange rate- came to 3600 Canadian. We will have a monthly payment of 361 USD for 9 months and then 211 payment for the next 54 months. They told us we could cancel anytime, and it was a vacation club, not a timeshare. They said if we cancel we just loose our credits and benefits. Looking over the contract now and I see in order to get out we need to pay 30% + any perks used. Is there anyway out of this without tanking my credit? We can’t afford it. The club comes with 5 weeks a year at their 3 resorts and RCi and they gave us travel credits for airfare. These credits seem to be a scam. They sold us a dream of travelling the word, saying we could sell our weeks and that they could even sell our weeks for a small fee. We have received nothing for what we paid- is there anyone that has advice. Thanks in advance

Hi, my Wife and I were in Cancun last March, we bought into a trial membership at the resort we were at, $4500 US, we paid $800 down and were supposed to pay $200/Us a mth after 3 mths back from trip, we regretted signing, so when back (way past the 5 day period), I said to myself what the heck, and disputed the charge to my CC company, low and behold I got my downpayment back and since then we haven't been paying the mthly fee, they send us letters and call us once a week (but not lately for some reason) but we ignore them, nothing has shown up on my credit report... If You gave them Your SIN #, that may cause an issue, I did, and I recently had my identity stolen and some stuff happening in that regard, I think it was them from Mexico that may have had something to do with it but who knows... Anyways, try contacting Your CC company to dispute the charge and ignore the emails, letters and phone calls, You should be fine... We are from Canada too!