How do we get out of Wyndham (Shell Vacations club) - deception and fraud - desperate for help

[Smyley4evr]

Short-ish Story:

We owe over $20k. We owned Shell Vacations, loved it and when Wyndham took over, they upsold us and lied to us about the additional benefits we would receive. We never would have upgraded if they hadn't promised us what they did. When we realized the fraud, we tried hiring a group to get us out - spent $2400 and they disappeared about 6 months into the process. We should have known better but were desperate. We quit paying almost 4 years ago now. It hasn't hurt out credit YET because we disputed it with the Credit Bureaus and for that reason they havent been able to put us into foreclosure. We can't do anything - specifically, buy a house for our young family, until this is resolved.

WE JUST WANT OUT!

To date, we have paid Shell Vacation and Wyndham Resorts $46,251. We have reviewed all vacations we booked through SVC and Wyndham and compared that to the cost of what we would have paid if we booked directly. The total we would have paid without our points is $14,621. Fees are upwards of $1700 a year. If we could use the points how we were told we could use them, then it wouldn't hurt so bad. But we can't!

I have called Granite Spire Law group, which is supposedly the legal team Timeshare Exit Team uses to litigate, but we don't want to throw more good money after bad. What do we do? We don't qualify for Ovations. Should we eat another $20k and pay them and hope they will do a deed back? (But that said, we just don't have the $20k to pay them). Do we ask for a Deed in Lieu of Foreclosure and hope they forgive the debt? Has anyone had luck with that? Will it massacre your credit?

I have contacted them over and over and they refuse to let us out. They have said the contract is within regulatory compliance. Our hands just seem to be tied, as we go deeper and deeper into debt with them.

BEGGING for help! I don't need to hear "you are an adult and should have known better" I am an adult and I see that my foot had gangrene - even if its my fault, I need to amputate. Any help or advice is appreciated!



Longer Story:

My husband and I purchased 2500 points with Shell Vacations Club in the spring of 2009. We were very good customers and were enjoying our points. After Wyndham Vacations purchased SVC, we went in for a Members Update. At this time we were told it was a very important one, as Wyndham Resorts had purchased Shell Vacations Club. The sales agents told us if we upgraded our membership from 2500 to 7000 points, we would then be able to use the Wyndham resorts worldwide and be grandfathered into a special program allowing us access to these resorts in addition to many other benefits. The sales staff had a thick book showing the Wyndham resorts ALL over the world and went through it with us discussing the broad range of places we could stay. If we upgraded that day, we would be given a special Shell Members pricing - but if we walked away our pricing would change - as in the cost would go from roughly $35,000 to over $100,000.

It was a big jump in finances for us, and we had to take out a Bill Me Later Credit Card to even make the down payment. Under the pretense that our benefits would greatly increase, specifically new access to thousands of Wyndham resorts worldwide, we decided to upgrade to 7000 points. Our presentation was supposed to be approximately 90 minutes and over 3.5 hours later we were still there. We had a 3.5 month old baby with us that needed to nurse and nap and we asked if we could come back later that day or the next to sign the paperwork, as we would not have sufficient time to review everything. The sales agent at Vino Bello Resort Wyndham said the offices would be closing after we left and that the special Shell Members pricing was only available right then. If we wanted to come back the next day, the price would nearly triple. So, with a tired, hungry and crying baby, we were rushed to sign everything and we were not given the opportunity to clearly read what we were signing. In fact, because they rushed us through the signing so much, they missed a page and even had to email at a later date asking for me to sign it.
We both know that Wyndham is in the midst of several Class Action lawsuits around the country for deceptive sales practices, such as these.

 

[rickandcindy23]

I would walk away. I am so sorry that Wyndham lied to you. They would say anything to sell you, and that is truth.

I am not going to berate you. I feel badly that Wyndham would talk you into a sale with crazy promises that never turned out to be true.

Shell was a pretty decent product as it was. We bought Shell resale and have no issues with Shell, just that we don't really want it anymore. We didn't go through a Wyndham presentation. We went through a credit card sales' pitch, however. The last Shell presentation we went to was at The Donatello, and it was quite hilarious because the guy was trying to sell us on the Wyndham credit card. It was such a bunch of lies. I called him on it. He said we would get 20 points or something per dollar spent and it would be more than enough points to pay our MF's. Points are an arbitrary product that apparently can withstand the lies of a salesperson. I told him I wanted to see that in writing. He hemmed and hawed and then his manager came over and I told the manager that I want to see the actual numbers on the Wyndham credit card that they were talking about. The manager said that you only get those points in so many categories, not every purchase. I said, "Well, that was all just lies." So they hurried me out of the door because we were 10 feet from people who were signing on the dotted line. Scam, absolute scam.
What I don't like is how much it costs to book Little Sweden at Fish Creek for a week in summer, or Vino Bello at any time of year in a 2 bedroom. It's very expensive to stay in those units with my own points. I can stay cheaper through Extra Vacations. That is not cool at all.

 

[TheTimeTraveler]

Walking away is an option, but I don't think it is the best option for those who want to retain excellent credit and hoping to buy a home.

Do understand that "Exit Teams" don't magically get you out from what is owed, and your situation is a prime example as to why never to pay upfront fees to get you out from under your burden. You've thrown a lot of money out the window; money which could have gone toward paying down your loan (which I'm confident you recognize now).

As long as you have an outstanding loan you will be on the hook unless you declare bankruptcy.

With that said (and as unpleasant as it is) plan to make an aggressive plan to pay down that loan and get the monkey off your back. I assume you can do that because you have aspirations to "purchasing a home for your young family". $1,000 per month for 20 months can likely put it in the rear view mirror for you and it will then allow you to deed back or simply give it away.

Welcome to TUG,


.

 

[rickandcindy23]

As much as I respect the above poster and the post, I think timeshare lies are an excusable debt, as far as credit bureaus are concerned. Even if your credit gets dinged, you can write a letter to the credit reporting agencies and explain your situation and that this was sold on a pack of lies. I think you would be okay for buying a house.

 

[Patri]

If it has not hurt your credit yet, why can't you buy a house? I agree not to throw more money at this company. They are going to require overdue maintenance fees as well as the loan amount plus interest. Talk to bankers and other lenders. Maybe you can find a starter home contract for deed. Maybe someone co-signs your loan. Not really advised for family members, but if they understand the situation it might be okay. Supposedly your credit will hurt for seven years, but it sounds like it has not started yet. (Don't waste your hope for a deed back, unless you have it in writing).

 

[VacayKat]

I’m going to guess the agent’s name was David Burdette if it was at Vino Bello. Have you tried escalating through the shell customer care folks? You have to get to senior case specialists in owner resolutions. While they might not let you out completely, if this was the agent he has enough complaints against him that they will usually try working with you. It’s worth a shot as you explore other avenues.

 

[HitchHiker71]

Have you submitted your case directly to the CEO office for review? If not, honestly it’s unlikely it will make a difference but it’s worth a shot in your case. Do you have any proof you were lied to during the original presentations? Any emails, documents, anything really. If so, I would plead your case via Michael.brown@wyn.com.


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[Magus]

I would be careful contacting the company at this point. I don't know the statue of limitations in your area or where you are deeded, but sometimes re-engaging resets that statute of limitations and after 7 years, it disappears entirely from your credit report...only 3 years left at this point. Also, you disputing the credit on the 3 credit rating agencies does not in any way limit them from foreclosing on you. They haven't done so simply because they don't want to do so. The credit rating companies have zero authority over state and local governments.

Lastly, this should not limit you from buying a house if its not on your credit report for late payments, and even then, 4 years after it would first reported late would not be as big of an impact as you think and many lenders, especially local credit unions, would be willing to work with you.

 

[bogey21]

I would be careful contacting the company at this point. I don't know the statue of limitations in your area or where you are deeded, but sometimes re-engaging resets that statute of limitations and after 7 years, it disappears entirely from your credit report...only 3 years left at this point.

Good Point...

George

 

[HitchHiker71]

Lastly, this should not limit you from buying a house if its not on your credit report for late payments, and even then, 4 years after it would first reported late would not be as big of an impact as you think and many lenders, especially local credit unions, would be willing to work with you.

They didn’t say it wasn’t on their credit report - they said it is in dispute on their credit report - which is not the same thing. This issue may impact their credit and their ability to qualify for mortgage for two reasons:

1. Debt to income ratio - if they owe a debt this negativity impacts their debt to income ratio which will directly impact the amount they can qualify for on a mortgage.

2. Disputed items - while in dispute - the mortgage company may require all disputed items to be resolved before approving a mortgage application - especially if the debts in dispute are significant and may impact the ability of the borrower to pay.

As you said - the mortgage company may or may not care about the disputed items - but I sense from the OP that they have run into some headwinds qualifying for a mortgage.


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[Magus]

They didn’t say it wasn’t on their credit report - they said it is in dispute on their credit report - which is not the same thing. This issue may impact their credit and their ability to qualify for mortgage for two reasons:

1. Debt to income ratio - if they owe a debt this negativity impacts their debt to income ratio which will directly impact the amount they can qualify for on a mortgage.

2. Disputed items - while in dispute - the mortgage company may require all disputed items to be resolved before approving a mortgage application - especially if the debts in dispute are significant and may impact the ability of the borrower to pay.

As you said - the mortgage company may or may not care about the disputed items - but I sense from the OP that they have run into some headwinds qualifying for a mortgage.


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He said "It hasn't hurt out credit YET...." The reporting company in question only has 30 days to respond to a dispute or it comes off entirely. I'm assuming the dispute was longer than 30 days ago given the 4 year nature of how long he's been working on this, but have to work with what the OP mentioned and make some assumptions. If it had been negative on his credit for the last 4 years and he just recently disputed it you are correct and worse likely will stay on his report for another 3 years.

If the mortgage is on his credit report even without any negatives it would certainly factor into DTI ratio but wouldn't impact his ability to get a mortgage and credit unions as I mentioned are usually far more lenient on these things than ones underwritten by Fannie and Freddie through traditional banks.

 

[bnoble]

WE JUST WANT OUT!

Unfortunately, there is no easy way to do this, and you essentially have two options.

One: stop paying, ignore the bill collectors, and wait for it to be foreclosed. This may (or may not) have an impact on your credit, but you won't spend the $20K you owe. You may be able to short-circuit the process by informing Shell/Wyndham that you do not intend to pay another penny, and that you would be willing to deed back in lieu of foreclosure---their choice.

Two: Pay it off. Other than a foreclosure or a deed-back, you aren't going to be able to get rid of this with a $20K balance on it. Once its paid off you can get rid of it, but you may find you want to keep it at that point.

That you were rushed through signing without time to adequately review is not going to matter; that's what the 7-day "cooling off" period is for, and that has long-since expired. Verbal mis-representations are also not likely to matter, because (a) your contract almost certainly includes a provision that only what is in writing matters, and (b) it's been long enough that no one's memory is going to be perfectly clear.

 

[rickandcindy23]

Buy a house you can live in for at least 7 years and don't ever want to refinance in those 7 years. Enjoy your home and stop paying on the Wyndham mortgage. I agree with Patri. That is a good way to go. Be done with that timeshare after your mortgage is financed and closed.