Canadian wants out of US timeshare

[curiouscaf]

Hi, This is my first post and I’m hoping for help. Are there Canadians here who stopped payments on their US Timeshare that is not paid off? Was your credit in Canada affected and are you still able to travel back to the US? What was the outcome?

 

[Passepartout]

We have not heard of/from Canadians credit being affected by defaulting on U.S. credit. Not that it couldn't happen if some credit issuing entity wanted to put forth the effort and expense to bring suit, but for a timeshare there probably isn't enough money for them to put much into the little reward they could get when they can just foreclose and sell the TS to someone else.

You can, however, count on getting letters and phone calls and emails promising (threatening?) to turn you over to collection and never being able to use their facility. Feel free to demand in writing that ALL correspondence be via USPS, and block phone calls/emails. Also change any credit cards they might be able to access.

Having a credit default will have zero effect on your ability to travel to the US or anywhere else. I'd go so far as to say that you could default and then buy another TS on your next trip to the US or Mexico!

Jim

 

[curiouscaf]

We have not heard of/from Canadians credit being affected by defaulting on U.S. credit. Not that it couldn't happen if some credit issuing entity wanted to put forth the effort and expense to bring suit, but for a timeshare there probably isn't enough money for them to put much into the little reward they could get when they can just foreclose and sell the TS to someone else.

You can, however, count on getting letters and phone calls and emails promising (threatening?) to turn you over to collection and never being able to use their facility. Feel free to demand in writing that ALL correspondence be via USPS, and block phone calls/emails. Also change any credit cards they might be able to access.

Having a credit default will have zero effect on your ability to travel to the US or anywhere else. I'd go so far as to say that you could default and then buy another TS on your next trip to the US or Mexico!

Jim

Thanks for your response. What’s USPS? Could they seize Canadian assets? I just want to know what the consequences may be financially or legally.

 

[DeniseM]

I have never heard of timeshares seizing assets anywhere - they just send you demand letters and turn you over to collections. USPS = United States Postal Service

 

[Passepartout]

Thanks for your response. What’s USPS? Could they seize Canadian assets? I just want to know what the consequences may be financially or legally.

USPS= United States Postal Service. Nobody can seize a Canadian's assets. You may (will) get thinly veiled suggestions, but that's about it. US authorities have zero control over your assets.

Re: your username. I'm also curious. Why didn't you rescind the contract you signed within the time frame when you are allowed to, without ANY consequences? You obviously saw value in owning a 'piece of Hawaii' to call your own. What changed?

We wish you well

Jim

 

[easyrider]

Hi, This is my first post and I’m hoping for help. Are there Canadians here who stopped payments on their US Timeshare that is not paid off? Was your credit in Canada affected and are you still able to travel back to the US? What was the outcome?

It depends on where and how you financed it. If the financing is through a Canadian company like Barclays Canada then they can go after the debt in Canadian Courts.

Bill

 

[curiouscaf]

I have never heard of timeshares seizing assets anywhere - they just send you demand letters and turn you over to collections. USPS = United States Postal Service

Thanks for your response. Have you heard of anything else that could be a consequence of defaulting? Could you go to prison?

 

[curiouscaf]

USPS= United States Postal Service. Nobody can seize a Canadian's assets. You may (will) get thinly veiled suggestions, but that's about it. US authorities have zero control over your assets.

Re: your username. I'm also curious. Why didn't you rescind the contract you signed within the time frame when you are allowed to, without ANY consequences? You obviously saw value in owning a 'piece of Hawaii' to call your own. What changed?

We wish you well

Jim

What do you mean by suggestions? The person who has the timeshare spent a few weeks in Hawaii. When he came back, it was past the time he could rescind it. He couldn’t get the loan he needs to pay it off along with other personal issues. Will his bad credit or the defaulted time share affect his children if he passes? Thanks.

 

[curiouscaf]

It depends on where and how you financed it. If the financing is through a Canadian company like Barclays Canada then they can go after the debt in Canadian Courts.

Bill

I haven’t heard of that. I think he set it up so the payments were taken out of a Canadian bank account. Is that what you mean by financing through a Canadian company? What would happen then?

 

[curiouscaf]

What do you mean by suggestions? The person who has the timeshare spent a few weeks in Hawaii. When he came back, it was past the time he could rescind it. He couldn’t get the loan he needs to pay it off along with other personal issues. Will his bad credit or the defaulted time share affect his children if he passes? Thanks.

Pay off the remaining balance*

 

[Passepartout]

What do you mean by suggestions? The person who has the timeshare spent a few weeks in Hawaii. When he came back, it was past the time he could rescind it. He couldn’t get the loan he needs to pay it off along with other personal issues. Will his bad credit or the defaulted time share affect his children if he passes? Thanks.

I used 'suggestions' as a euphemism for 'threats'. The defaulting party can expect letters and calls, but ''Vito and Max' won't show up on the doorstep to break knees. We can't know Canadian laws regarding property succession after a death, but in the US, one doesn't have to accept a bequest- especially of near worthless (like timeshares) assets.

We think that defaulting will ultimately result in the timeshare simply being sold at some point, and no further mark on the Canadian credit report. We have asked many earlier questioners to return with the results of our advice, and they have either said, 'Thanks', or simply not returned. We have to assume that they got the desired result. 'Out'.

You are asking questions that we are just not equipped to answer. If you have further questions, I think you should engage legal representation with experience in Canadian consumer debt.

Jim

 

[easyrider]

I haven’t heard of that. I think he set it up so the payments were taken out of a Canadian bank account. Is that what you mean by financing through a Canadian company? What would happen then?

You really haven't said what timeshare or how you financed it so I don't know.

Bill

 

[curiouscaf]

You really haven't said what timeshare or how you financed it so I don't know.

Bill

It’s Wyndham. Payments were set to be taken out of a Canadian credit card.

 

[moonstone]

It’s Wyndham. Payments were set to be taken out of a Canadian credit card.

I'd be cancelling that card (as much of a pain it might be if you have other auto-payments on it) and getting a new/different credit card. Wyndham cant transfer the payments to a new card without your consent.


~Diane

 

[MOXJO7282]

Thanks for your response. Have you heard of anything else that could be a consequence of defaulting? Could you go to prison?

You're joking right? Nobody goes to prison over debt.

 

[easyrider]

It’s Wyndham. Payments were set to be taken out of a Canadian credit card.

Wyndham uses Barclays and Barclays has a Canadian Office so the probability is that when you default the loan will go to collections. Your worries are limited to defaulting on a credit card regarding the maintenance fee and loan balance, imo. I don't know the collection process in Canada but it looks like the collection efforts do increase the amounts owed and that the efforts might include a judgement and garnishments.

Bill

 

[easyrider]

I'd be cancelling that card (as much of a pain it might be if you have other auto-payments on it) and getting a new/different credit card. Wyndham cant transfer the payments to a new card without your consent.


~Diane

Diane, does Canadian collections garnish credit card debt ? I have wondered about this in the past.

Bill

 

[moonstone]

Diane, does Canadian collections garnish credit card debt ? I have wondered about this in the past.

Bill

I an not positive but Google Canada says they can. We have no personal experience with unpaid credit card or other debt. The creditors need a court order to start garnishing the wages (if there are any).

When our oldest DS started college (in Ontario) all the major banks were at the welcome day signing students up for credit cards. As far as I could tell they issued cards to the kids without even checking to see if they had jobs or what was in their bank account. DS & several of his friends signed up for Mastercards and got them with no problem. Thankfully DS told us about it and he knew how credit cards worked. We let him keep it with the understanding it was for emergencies only and not a case of beer for a party. Of course a few of the kids went crazy with purchases and ran up huge balances with no way of paying them since none of them had jobs and the parents were paying tuition and expenses. I'm sure the parents' didnt even know about the card application. One teacher (who I reported to the college) told the kids to cut up the card and ignore the collections calls because "they cant get blood from a stone". One of DS's friends actually changed cellphone numbers to avoid the calls. I dont know if he ever paid off the balance.


~Diane

 

[curiouscaf]

Wyndham uses Barclays and Barclays has a Canadian Office so the probability is that when you default the loan will go to collections. Your worries are limited to defaulting on a credit card regarding the maintenance fee and loan balance, imo. I don't know the collection process in Canada but it looks like the collection efforts do increase the amounts owed and that the efforts might include a judgement and garnishments.

Bill

Sorry could you elaborate what you mean? I am not familiar with this and just getting information for someone else. Thanks.

 

[easyrider]

Sorry could you elaborate what you mean? I am not familiar with this and just getting information for someone else. Thanks.

When Wyndham sells a membership in North America they will try to use financing in the buyers home country. Barclays is a the company that underwrites the Wyndham credit card and lines of credit. If you are Canadian, Wyndham Barclays can take the loan to courts for a judgement in Canada. If this is the situation then you may need to speak to an attorney or figure out how to keep the membership in good standing, imo. You could also default and see what happens but if you are trying to protect your credit score this might be a contradiction.

Bill

 

[BrewsterHR]

Slightly off topic.
How aggressive do think they would be when it comes to collecting Maintenance Fees for Canadians. Our timeshare is fully paid but we are considering not paying our fees as the management company won’t take the timeshare back or at least that is what they are saying. Management company’s initials SM.