Mexico Timeshare - Can I just stop paying maintenance fees?

[mboeding621]

I have owned a 2 bedroom timeshare at Sunset Lagoon in Mexico since 2003. Have only visited twice, and have rolled into RCI most years (when I remember). We also own Wyndham and were told we could roll into that, but it's been a nightmare to do. We have spent about $33,000 on this stupid purchase - including the purchase and the monthly maintenance fees. Maintenance fees were $585 in 2003 and are now $935. We want to just get out of paying them any more money. I know it has no value - can we just stop paying them and be done with this?

 

[Passepartout]

That's what I'd do. You don't really OWN anything. It's simply a 'right-to-use' membership and the only 'teeth' they have is to terminate your membership, which is what you want anyway. Oh, you'll probably get some fairly ugly letters, but I don't think they can affect your credit.

By the way, welcome to TUG. Where've you been? We've been here waiting for you.

Jim

 

[LannyPC]

We want to just get out of paying them any more money. I know it has no value - can we just stop paying them and be done with this?

Two things. First, we're glad you came here first for advice rather than seeking the "help" of some of these companies and law firms that claim they can get you out of your TS.

Secondly, check out this sticky thread at the top of this forum:

https://tugbbs.com/forums/threads/timeshare-default-credit-report-collection-tracking.304138/

It keeps track of people like you (in a good way, of course) who have chosen to just stop paying maintenance fees and what the repercussions were. Most of the time, it's fairly harmless. If you do decide to do what Passepartout Jim told you above and just stop paying fees, we kindly ask that you come back and share your story as to what happened.

 

[Grammarhero]

I have owned a 2 bedroom timeshare at Sunset Lagoon in Mexico since 2003. Have only visited twice, and have rolled into RCI most years (when I remember). We also own Wyndham and were told we could roll into that, but it's been a nightmare to do. We have spent about $33,000 on this stupid purchase - including the purchase and the monthly maintenance fees. Maintenance fees were $585 in 2003 and are now $935. We want to just get out of paying them any more money. I know it has no value - can we just stop paying them and be done with this?

@mboeding621
Out of 28 MF defaults reported on TUG, only 5 led to credit score decreases. Most notably, a tugger defaulting on Sunset Cancun was not reported to the credit agencies. https://tugbbs.com/forums/threads/a...fees-what-happened.296893/page-2#post-2351044

If you make the difficult decision to default, please kindly let us know if your credit got affected. It would help tuggers moving forward.

 

[Grammarhero]

I have owned a 2 bedroom timeshare at Sunset Lagoon in Mexico since 2003. Have only visited twice, and have rolled into RCI most years (when I remember). We also own Wyndham and were told we could roll into that, but it's been a nightmare to do. We have spent about $33,000 on this stupid purchase - including the purchase and the monthly maintenance fees. Maintenance fees were $585 in 2003 and are now $935. We want to just get out of paying them any more money. I know it has no value - can we just stop paying them and be done with this?

@mboeding621 We hope you are well and healthy. If you made the difficult decision to default, would you kindly let us know if your credit got affected? It would help tuggers in similar situations moving forward.

 

[blueskylarry]

Hello . THANK YOU for providing info on this forum. It is not easy to find trustworthy info on the web re how to sever a relationship with a Mexican timeshare.
We bought a 2bdr unit in Nuevo Vallarta from Playa del Sol. It has been taken over by BelAir. We had the same experience as many with great pressure to buy and lousy service later. Three years ago we stopped paying MF. A few months ago we started receiving emails threatening collection agency action. However. if we pay the owing MF they offered a free week vacation. All we want is to stop paying MF. However, we don't know that even if we pay, that someone else will not demand MF in the future. We live in Canada.
Has someone been in the same situation ? Any suggestions?

 

[Passepartout]

Hello . THANK YOU for providing info on this forum. It is not easy to find trustworthy info on the web re how to sever a relationship with a Mexican timeshare.
We bought a 2bdr unit in Nuevo Vallarta from Playa del Sol. It has been taken over by BelAir. We had the same experience as many with great pressure to buy and lousy service later. Three years ago we stopped paying MF. A few months ago we started receiving emails threatening collection agency action. However. if we pay the owing MF they offered a free week vacation. All we want is to stop paying MF. However, we don't know that even if we pay, that someone else will not demand MF in the future. We live in Canada.
Has someone been in the same situation ? Any suggestions?

Take a look at this thread. Specifically, post 108

 

[Grammarhero]

Hello . THANK YOU for providing info on this forum. It is not easy to find trustworthy info on the web re how to sever a relationship with a Mexican timeshare.
We bought a 2bdr unit in Nuevo Vallarta from Playa del Sol. It has been taken over by BelAir. We had the same experience as many with great pressure to buy and lousy service later. Three years ago we stopped paying MF. A few months ago we started receiving emails threatening collection agency action. However. if we pay the owing MF they offered a free week vacation. All we want is to stop paying MF. However, we don't know that even if we pay, that someone else will not demand MF in the future. We live in Canada.
Has someone been in the same situation ? Any suggestions?

@blueskylarry

out of 8 TS defaults by Canadians reported on TUG, 0 got reported to the Canadian credit agencies. Check out the links below. One Canadian MF defaulter was told to me in confidence, so I cannot reveal that.

If you make the hard decision to default, mind telling us if your credit got affected? It would help tuggers in similar situations moving forward.

https://tugbbs.com/forums/threads/a...fees-what-happened.296893/page-7#post-2396547

https://tugbbs.com/forums/threads/canadian-with-a-timeshare-in-florida.298837/#post-2367946

https://tugbbs.com/forums/threads/a...fees-what-happened.296893/page-3#post-2352822

 

[deFraudlk]

That's what I'd do. You don't really OWN anything. It's simply a 'right-to-use' membership and the only 'teeth' they have is to terminate your membership, which is what you want anyway. Oh, you'll probably get some fairly ugly letters, but I don't think they can affect your credit.

By the way, welcome to TUG. Where've you been? We've been here waiting for you.

Jim

I wish I knew for sure that it would not hurt my credit - Ipd the stupid thing off on the first 2 years and maint fees are 2400 a year - i don't know how to stop the bleeding

 

[callwill]

I wish I knew for sure that it would not hurt my credit - Ipd the stupid thing off on the first 2 years and maint fees are 2400 a year - i don't know how to stop the bleeding

Is this a right to use club or some type of deeded ownership? Located in Mexico? What country do you live in?

 

[TUGBrian]

I wish I knew for sure that it would not hurt my credit - Ipd the stupid thing off on the first 2 years and maint fees are 2400 a year - i don't know how to stop the bleeding

there is no guarantee that defaulting on anything wont hurt your credit unfortunately.

however id consider defaulting on the maintenance fees for a mexican timeshare to be about as low a risk as there is for that to show up on your credit....just never zero!

what did the resort say when you asked about simply ending your ownership? $2400 a year for life is a hefty sum to maintain a credit score.

 

[Tcm]

Hi can somebody help me.I already decided to default my payment on my vacation membership in Cancun.I took a promissory note from them but the credit card I gave them I already reported it as stolen.I know that in time they would pass my debt to Monterey Financial as I read the contract.Am i able to avoid this debt collecting agencies?

 

[callwill]

Hi can somebody help me.I already decided to default my payment on my vacation membership in Cancun.I took a promissory note from them but the credit card I gave them I already reported it as stolen.I know that in time they would pass my debt to Monterey Financial as I read the contract.Am i able to avoid this debt collecting agencies?

You need to know what it is you bought. Was it a deeded week of some type, or just a right to use club?

 

[Passepartout]

Hi can somebody help me.I already decided to default my payment on my vacation membership in Cancun.I took a promissory note from them but the credit card I gave them I already reported it as stolen.I know that in time they would pass my debt to Monterey Financial as I read the contract.Am i able to avoid this debt collecting agencies?

If you've already decided to default, then do it and accept the consequences. Was the credit card that you reported stolen replaced? If it was me, I'd fully cancel that account and open another one with another provider. Who is Monterey Financial? Are they a Mexican outfit? If they are a Mexican outfit, and linked to your Sunset TS, what collateral do they have access to? If the only 'teeth' to it is loss of use of the Mexican TS, wad up the 'late payment' demands, and move on. Even a Mexican deeded property (there are VERY few of these) has no value and will have zero affect on your U.S. credit score.

 

[Tcm]

Im so anxious about the consequences.What do you think would be the worst that could happen to us?

 

[Tcm]

You need to know what it is you bought. Was it a deeded week of some type, or just a right to use club?

It says Vacation category membership allowing the use and occupancy of studio flex.That’s what it says on the purchase agreement.

 

[easyrider]

they would pass my debt to Monterey Financial as I read the contract.Am i able to avoid this debt collecting agencies?

No. Your debt was probably sold to Monterey Financial who is a debt collector. They will try to collect. That's what they do. The worse that can happen is they get you to sign a new loan with them in the USA because then you are stuck with an enforceable loan. They can't take anything from you so on that end you are safe. The worse case scenario is your credit score takes a hit of maybe 100 points. What @Passepartout told you sounds right to me.

Bill

 

[Tcm]

No. Your debt was probably sold to Monterey Financial who is a debt collector. They will try to collect. That's what they do. The worse that can happen is they get you to sign a new loan with them in the USA because then you are stuck with an enforceable loan. They can't take anything from you so on that end you are safe. The worse case scenario is your credit score takes a hit of maybe 100 points. What @Passepartout told you sounds right to m

No. Your debt was probably sold to Monterey Financial who is a debt collector. They will try to collect. That's what they do. The worse that can happen is they get you to sign a new loan with them in the USA because then you are stuck with an enforceable loan. They can't take anything from you so on that end you are safe. The worse case scenario is your credit score takes a hit of maybe 100 points. What @Passepartout told you sounds right to me.

Bill

So what should I do if for the debt collector?Should I just ignore them and not sign any loan?

 

[TUGBrian]

if you truly are concerned, seek out a consultation with a local attorney in your area that specializes in debt collection (not timeshares). the collections laws/procedures in your state will dictate what can be done in an effort to collect on a debt.

 

[callwill]

A quick search reveals that "Monterey Financial is a debt collector reporting a collection account on your credit report. In some cases this means they purchased the debt from the original creditor (i.e. a credit card or loan company)." They are located in Oceanside CA.

 

[WorldT]

So what should I do if for the debt collector?Should I just ignore them and not sign any loan?

Under NO circumstances should you sign ,or agree to anything, or pay anything with Monterrey financial or any other debt collector.
They will try to scare you wand many people pay them cos they are scared. That will be a waste of money.
Since they are US based as someone pointed out, they may report it to the credit agency. You can contest that report directly with the credit agency if it shows up. Worst case scenario is you lose and you get a few ding on your score. You have to decide if that few ding is worth the money they are asking.
From your statement, it seems you have already paid off the purchase (loan). If what you have left now is the MF then essentially you are making payment for membership to a club.

 

[Tcm]

Under NO circumstances should you sign ,or agree to anything, or pay anything with Monterrey financial or any other debt collector.
They will try to scare you wand many people pay them cos they are scared. That will be a waste of money.
Since they are US based as someone pointed out, they may report it to the credit agency. You can contest that report directly with the credit agency if it shows up. Worst case scenario is you lose and you get a few ding on your score. You have to decide if that few ding is worth the money they are asking.
From your statement, it seems you have already paid off the purchase (loan). If what you have left now is the MF then essentially you are making payment for membership to a club.

I haven’t paid off the loan.Im supposed to start next year.

 

[WorldT]

I haven’t paid off the loan.Im supposed to start next year.

Who is listed as the financing company?

 

[Tcm]

About the debt collector I’m just thinking ahead of time.So this is my case we just purchased vacation membership in Sunset Royal last Nov 21,2024 but we were not able to cancel it right away.Then of course I found out all their lies so I decided to just default payment.Im supposed to start next year with the payment but decided to cancel the credit card.Im just so anxious what would happen to us since we signed a promissory note from them.

 

[Tcm]

Who is listed as the financing company?

I

Who is listed as the financing company?

I signed from them.But its says the creditor is TB travel Sa.I didn’t take a loan in the US.