Received certified letter on payment of assessment fees

[chapjim]

I would send a letter to cease and desist all collection letters and calls per the fair credit collection act (I think I have this right. Google it to make sure). That will at least stop them fro pestering you. It might be worth it to pay a few hundred dollars to get the opinion of an attorney skilled in collections to make a decision wether or not council is worth the cost in your situation.

What will they do? Hard to say. Maybe just turn it over to collections. Maybe they’ll actually attempt to get a judgement and force payment. Maybe they’ll foreclose and I’ve on. At a minimum I’m pretty certain you’ll have to endure various collection agencies for the several years. At worst you might have a judgement against in which case you’ll have to consider paying the judgement vs filing bankruptcy.

It's the Fair Debt Collection Practices Act, which was amended in 2021. It's a fairly easy read as statutes go and the CFPB has a website web page to help explain it.

I used that statute several years ago to quiet a law firm that was bugging me to pay a speeding ticket in Polk County, Florida that I had already paid. In addition, Polk County no longer engaged that law firm to do collections. I had a lot of fun with that, in emails and on the phone, especially after I found out the law firm no longer had the county as a client.

This was a $50 ticket! So, don't be so sure $26,000 won't be sent to collections.

 

[WManning]

Hello,
I stopped paying anything on my timeshare for 2 years now. Recently I received a certified letter from Diamond requesting the past due assessment fees totaling $26,000. It states in the letter that they may send the account to an attorney, a collection agency, and recover the points and terminate membership. What do you think they will really do if I don't pay? They are giving me 30 days to pay the money that I don't have. I purchased in Virginia but live in Maryland.

@Grammarhero

 

[Mongoose]

Just don’t send them a “token” amount for “good will”. That is a trick they use to reset the statute of limitations.

 

[Sandy2213]

Just don’t send them a “token” amount for “good will”. That is a trick they use to reset the statute of limitations.

@Grammarhero

Grammarhero and Mongoose,
You both seem very wise. Thank you for caring about those of us who sometimes make errors in judgement. I know this may sound like another sob story, but....truth is truth. We are not deadbeats just made a very bad decision we can't seem to get out of. Accepted a timeshare from a "friend." We asked our SC Myrtle Beach TS owner (TS is deeded, we never switched to points), to take a Deed in Lieu of and were told no several times. Finally in Jan 2020, they sent a request for an enormous amount of personal information and other documentation and stated they would contact us about the Deed in Lieu of. However, they never did, COVID happened I could never reach anyone by phone. I sent the paperwork at least 2 times, and I believe three, 2020 was a tough year for all of us. I have an email from TS acknowledging they received it at least once. I also have a return receipt of one time info was sent, but I don't think one of the return receipts came back to me.

We owe no money and since the "friend" gave the TS to us, and we innocently accepted it sight unseen. We knew nothing about timeshares 25 years ago. This TS was run down, moldy and was full of smoke. We went very little, never stayed an entire week, because my husband's allergies would kick in and he would wind up with pneumonia almost every time. Although the smoking has since been eliminated the smell still came through the vents. Generally the trips were not pleasant though we did have some good times. However, after COVID my husband's illness progressed so we travel very little.

Now to the good part. Last week we received a collections letter from Pinnacle Recovery. I would like your thoughts on a couple things:

• Should I send a validation letter to the collections agency requesting information on debt. Although the name of the company is correct on the collections letter, the amount and account number or incorrect. I don't know if they bought the debt or were hired to collect the debt. I am not stating the debt is mine because none of the info but the name of the TS is correct.
• Will this help if they do sue?
• If they sue, is it better to defend or just default?
• If they chose to Foreclosure so be it.
• I don't feel I can call the TS owner as it would start the process over again and once it is in the hands of collections I'm not allowed to anyway, correct.
• We offered to pay up all back payments if they would take the Deed in Lieu of. With 2023, I think we are now 4 overdue. We still would do that, but if I contact them I feel it would start the process all over again.
• We only have retirement pensions and SS. I don't think they can garnish our wages. Exactly what are they allowed to do by law?

 

[Kozman]

I can only talk from personal experience but I stopped paying the maintenance fees on my Sunrise Ridge flex deeded week for 2022. I got two threatening certified letters from HOA/Diamond in early 2022. I ignored them and did not answer any phone calls that were not on my contacts. In December I received a Deed from Diamond in lieu of foreclosure. All I had to do was sign, get it notarized and return. In exchange all past, present and future financial obligations to the HOA would be forgiven. Basically I called their bluff and they blinked first. I think so many people quit paying that they had to stop the financial bleeding by any means possible including being reasonable and taking it back for immediate resale. I also realize every situation and every HOA is different. I got lucky. I wish you luck.

 

[Sandy2213]

I can only talk from personal experience but I stopped paying the maintenance fees on my Sunrise Ridge flex deeded week for 2022. I got two threatening certified letters from HOA/Diamond in early 2022. I ignored them and did not answer any phone calls that were not on my contacts. In December I received a Deed from Diamond in lieu of foreclosure. All I had to do was sign, get it notarized and return. In exchange all past, present and future financial obligations to the HOA would be forgiven. Basically I called their bluff and they blinked first. I think so many people quit paying that they had to stop the financial bleeding by any means possible including being reasonable and taking it back for immediate resale. I also realize every situation and every HOA is different. I got lucky. I wish you luck.

Thank you. I will report what happens.

 

[Sandy2213]

Thank you. I will report what happens.

We are still getting “Nasty Grams” from Pinnacle Recovery once a month. They have called twice, however I refuse to speak with them. So far no hit on Credit Rating.

 

[Sandy2213]

Ours is a deeded timeshare. I wish I knew if Pinnacle bought our debt or if they are being paid to recover debt by Capital Vacations or the HOA. Found out the Timeshare is way over 60 years old.

 

[pedro47]

Good luck with your timeshare problems. Do not paid them a dime.
Please keep us informed.
Good luck.

 

[Sandy2213]

An update on credit rating after being turned over to collections by the Beach House Golf & Racquetball in Myrtle Beach, managed by Capital Vacations. Still no hit on our credit score. I saw where the 60 year old Beach House Golf & Rac Club has temporarily closed down due to an emergency repair situation. In a thread posted by a TUG member they received a letter offering owners the option of getting out or paying extreme assessments. How would a closure in a situation like this effect those of us who have been turned over to collections?

 

[hvsteve1]

Send a copy of the letter to the collections agency. You probably didn't get it because you'r in collections, so see if the poster can attach a copy. If your credit rating seems to be taking a hit, send it to the credit bureaus.

 

[Talent312]

BTW, a Bankruptcy filing can defeat a money Judgment.
It will discharge the underlying debt (but not the lien).
So, a foreclosure could proceed, but not collection efforts.
Downside: Any assets subject to creditor claims could be
handed to a Trustee.
As always, he should consult a Bankruptcy attorney.

Short of that, a debtor's attorney can demand that any
collection communications be thru the attorney.

 

[4TimeAway]

BTW, a Bankruptcy filing can defeat a money Judgment.

On that front, I had the distinct pleasure of spending over $50,000 of trust $$$$ on Bankruptcy Liens. It was incredibly unpleasant realizing several weeks later would not cost the trust anything.

On that front, please be wise to pay your bills, don’t overpromise and for God’s Sake never DIE! Unless living is unpleasant and you’re suffering.

Please know the excess money, if you have any, will soon enough flow out of the hands to which you’ve entrusted it, unless you have Legacy Trust (or whatever they call it these days). Control after death however, distasteful is the best way to ensure its not pissed away.

But then again after I'm dead, I don't care.

- Never mind.

 

[pierrepierre]

You must have a high number of points to have that charged to your account. Did you think of getting rid of them earlier. We did not want that kind of hit to our records, so we went thru Transitions. Yes, it cost, but it is over! Done! Fini!

 

[Sandy2213]

Good luck with your timeshare problems. Do not paid them a dime.
Please keep us informed.
Good luck.

 

[Sandy2213]

UPDATED RESULTS: We received a letter (Dec 2023), from the BEACH HOUSE in Myrtle Beach SC, stating we had several options, one being to sign over the deed and past fees including maintenance fees would be forgiven. We are planning to sign and send in paperwork.
They are voting in 2024 whether to close or assess a repair fee. They have been closed since July 2023 and plan to remain closed until 2025 for repairs, if the HOA should vote to repair. I am betting the majority will want to close and dissolve the HOA. Beautiful piece of property but units were not in good shape in our opinion. Because of the closure, I guess the management wants as many deed backs as possible.