Question re: collection agency & contracts

[RTVA]

After getting deceived all-around, we're walking away from a Mexican timeshare (fully paid, they're coming after us on MFs alone). The collection agency has promised this will appear on our credit reports. Reading my contract, it doesn't say anything about collection agencies, it only says, "If the payment of the fee has not been received within 120 after the date established, the respective Contract will be suspended, and the User shall not be able to use their rights until the fees and interest owed have been fully covered." My interpretation is that I simply lose the rights to use the vacation club (that's fine!), not that they can seek out other retaliation.

Does anyone think that's not a correct interpretation? And assuming it's not, do you think that (plus the fact they claimed the resort would be able to help sell the timeshare, if only the MFs were paid; but there are no buyers, not even for $1) qualifies as a Lie under the Fair Debt Collections Practices Act, and they should be reported? Thanks for any insight anyone has!

 

[easyrider]

If it is El Cid only then it would be difficult for them to do anything in the USA other than sell your debt to a debt collector. If it is Wyndham then they probably can go after your debt in the USA. Some El Cid memberships upgraded to a Wyndham.

Don't worry about it and don't talk to the debt collectors. The things they say can trap a person into the debt. This is what I would do and I am not telling you what you should do, lol.

Bill

 

[RTVA]

If it is El Cid only then it would be difficult for them to do anything in the USA other than sell your debt to a debt collector. If it is Wyndham then they probably can go after your debt in the USA. Some El Cid memberships upgraded to a Wyndham.

Don't worry about it and don't talk to the debt collectors. The things they say can trap a person into the debt. This is what I would do and I am not telling you what you should do, lol.

Bill

Thanks, you have been comforting to me before, too! We're not talking to them; they keep calling and leaving messages and based on what the contract actually says, I actually wonder if they're technically breaking the law. Per the contract, it seems like all they can do is simply take away my "privileges" and I'll lose my "investment", it says nothing about any further consequences and the word "collections" never even appears. I know they're unethical, but if what they're doing is illegal, too, I'd love to report them.

 

[daverunfast]

Just threats, don't worry about it. They're unlikely to get on your credit report, dispute it if they do.

 

[RTVA]

Lo and behold, they DID get on our credit report, 100 point score drop. It's currently in the first round of dispute. Fingers crossed! We mentioned a) the Mexican and not US contract, b) the verbally fraudulent sales pitch, and c) the fact that the contract says nothing about the collections in the event of non-payment of MFs, just that our right-to-use benefits are forfeited. If the dispute is denied, I'm not sure what the next step could be, other than maybe hiring a lawyer??? (Giving these crooks more free $ is not an option, morally.)

Does anyone know if they could just keep us on a merry-go-round of adding new collection accounts with each year of MFs we don't pay? That seems like it would drive a credit score to 400, if they were treated as different accounts, anyway...

 

[easyrider]

Lo and behold, they DID get on our credit report, 100 point score drop. It's currently in the first round of dispute. Fingers crossed! We mentioned a) the Mexican and not US contract, b) the verbally fraudulent sales pitch, and c) the fact that the contract says nothing about the collections in the event of non-payment of MFs, just that our right-to-use benefits are forfeited. If the dispute is denied, I'm not sure what the next step could be, other than maybe hiring a lawyer??? (Giving these crooks more free $ is not an option, morally.)

Does anyone know if they could just keep us on a merry-go-round of adding new collection accounts with each year of MFs we don't pay? That seems like it would drive a credit score to 400, if they were treated as different accounts, anyway...

What is the worse that can happen if you don't pay ? I think its just a credit score drop. At some point in life a credit score drop doesn't really matter. I'm at that point, lol.

Bill

 

[bjones9942]

They can call, email, and snail mail dunning letters until the end of time. The hit to the credit report will drop off after several years if the dispute doesn't make it go - but that won't stop them from trying to collect. Or any company they sell their bad debts to, or any company that company sells their bad debts to, or any company that company sells their bad debts to, or ....

About fifteen years ago I had a cell phone with a company and I couldn't get a signal at my house. They kept telling me a new cell tower was going up in my area soon. After several months I told them they could take their contract and shove it as they weren't providing the service they sold me. I still get calls. You can tell them to contact you only in writing, but that only works until they sell their debts to someone else - then it starts back up again.

Buckle up and never agree with them that you owe a dime - that'll reset the clock on the debt.

 

[RTVA]

They can call, email, and snail mail dunning letters until the end of time. The hit to the credit report will drop off after several years if the dispute doesn't make it go - but that won't stop them from trying to collect. Or any company they sell their bad debts to, or any company that company sells their bad debts to, or any company that company sells their bad debts to, or ....

About fifteen years ago I had a cell phone with a company and I couldn't get a signal at my house. They kept telling me a new cell tower was going up in my area soon. After several months I told them they could take their contract and shove it as they weren't providing the service they sold me. I still get calls. You can tell them to contact you only in writing, but that only works until they sell their debts to someone else - then it starts back up again.

Buckle up and never agree with them that you owe a dime - that'll reset the clock on the debt.

Do you have any idea if it will be considered a new item each year until perpetuity? As in, they're chasing for their claimed 2021 MFs now, but when the 2022 MFs roll around, will that be treated as a brand new claim, and then 2023, and then...

No risk of me ever agreeing that I owe the debt. The contract doesn't even mention collections, just that the right-to-use benefits are revoked.

Amazing that they're still calling after 15 years on your cell phone issue! I thought it all was supposed to lapse after 7.

 

[RTVA]

What is the worse that can happen if you don't pay ? I think its just a credit score drop. At some point in life a credit score drop doesn't really matter. I'm at that point, lol.

Bill

We're mostly at that point (our mortgage is a 15-year fixed at an amazing 2%... no refinances coming up on that one!), except that I do worry about background checks for jobs. Even if I explain it, I'll have to fess up that I was stupid enough to buy a Mexican vacation club from a place called El Cid... it's just not the sort of admission I want to make during the hiring process! :0

 

[bjones9942]

Do you have any idea if it will be considered a new item each year until perpetuity? As in, they're chasing for their claimed 2021 MFs now, but when the 2022 MFs roll around, will that be treated as a brand new claim, and then 2023, and then...

No risk of me ever agreeing that I owe the debt. The contract doesn't even mention collections, just that the right-to-use benefits are revoked.

Amazing that they're still calling after 15 years on your cell phone issue! I thought it all was supposed to lapse after 7.

It's not a new item, and it does roll off your credit report after 7 years (you can dispute it too) - but the calling/dunning has no expiration date whatsoever. And of course, the original $95 will turn into $300 which turns into $1200 and then $1500 and ... Every time the debt gets sold it gets bigger.