Rescinding timeshare contract

[SeekingToGetOut]

I have decided to rescind my contract with a large timeshare company. I am within the given period and have found the address that I need to send my letter to. I will be sending the letter via certified mail tomorrow (again, within the provided window to back out of the contract). I found an earlier thread with some very helpful information, and a lot of my questions have been answered from reading it.

However, I had two questions. I apologize if they have come off as naive or if they have been asked many times before.

I made a down payment on my credit card. How exactly does the refund process work for that? I believe my credit card payment with the large down payment will be due within 38 days or so, which is a week short of the 45 day requirement for the company to accept my letter and to rescind the contract.

I will have a tracking number and proof of delivery confirmation from the Post Office. I will also send a fax and an email as further proof of my full intention to cancel my contract.

Will I just have the charge reversed out automatically, once the company accepts the letter? Do I need to call the credit card company and file an alert or anything like that? Years ago, someone must have stolen my credit card number and ordered a rugby jersey for 40 dollars. It was a piece of cake to get the charge reversed, but this is obviously a much higher total (and not a case of blatant theft).

My other question is simpler. If the company doesn't wait until the 45th day to accept the letter, how long does it normally take for the charge to be removed?

I will have paper documentation of everything, but it still feels a little precarious until I see the charge removed.

Thanks for your help.

 

[Passepartout]

You will be refunded automatically. The definition of 'rescission' is to put affairs back to where they were before the purchase was made. Now as to when the card will be refunded. You cannot dispute the charge until it is due. So I would call the card's customer service number and ask. There is a good chance that the refund will get posted first, so don't hurry to 'fess up.

Glad you found TUG in time! Welcome.

Jim

 

[SeekingToGetOut]

Thank you, Jim. I appreciate your reply.

I have one follow-up. It looks like the payment won't be due on my credit card until mid-January. If it hasn't been removed by then, let's say a week prior, do you recommend I call the credit card company's customer service? In other words, do I lose leverage if I make the payment to my credit card and assume that everything will be sorted out afterwards, as long as I have my paper records?

 

[Ty1on]

Thank you, Jim. I appreciate your reply.

I have one follow-up. It looks like the payment won't be due on my credit card until mid-January. If it hasn't been removed by then, let's say a week prior, do you recommend I call the credit card company's customer service? In other words, do I lose leverage if I make the payment to my credit card and assume that everything will be sorted out afterwards, as long as I have my paper records?

You don't lose leverage, but depending on who your CC company is, they may suspend the charge in anticipation of cancellation so that you don't have to make a payment. I'm not sure how that affects you interest-wise....but hey, paying a little interest on that charge before it goes away is cheap tuition for a valuable timeshare lesson.

 

[Grammarhero]

I have decided to rescind my contract with a large timeshare company. I am within the given period and have found the address that I need to send my letter to. I will be sending the letter via certified mail tomorrow (again, within the provided window to back out of the contract). I found an earlier thread with some very helpful information, and a lot of my questions have been answered from reading it.

However, I had two questions. I apologize if they have come off as naive or if they have been asked many times before.

I made a down payment on my credit card. How exactly does the refund process work for that? I believe my credit card payment with the large down payment will be due within 38 days or so, which is a week short of the 45 day requirement for the company to accept my letter and to rescind the contract.

I will have a tracking number and proof of delivery confirmation from the Post Office. I will also send a fax and an email as further proof of my full intention to cancel my contract.

Will I just have the charge reversed out automatically, once the company accepts the letter? Do I need to call the credit card company and file an alert or anything like that? Years ago, someone must have stolen my credit card number and ordered a rugby jersey for 40 dollars. It was a piece of cake to get the charge reversed, but this is obviously a much higher total (and not a case of blatant theft).

My other question is simpler. If the company doesn't wait until the 45th day to accept the letter, how long does it normally take for the charge to be removed?

I will have paper documentation of everything, but it still feels a little precarious until I see the charge removed.

Thanks for your help.

@SeekingToGetOut We hope your rescission and deposit refund were successful. To track TUG rescission savings, mind sharing how much you saved with rescission? As half of tuggers initially bought developer/retail TS, there is no shame.

 

[Luanne]

Thank you, Jim. I appreciate your reply.

I have one follow-up. It looks like the payment won't be due on my credit card until mid-January. If it hasn't been removed by then, let's say a week prior, do you recommend I call the credit card company's customer service? In other words, do I lose leverage if I make the payment to my credit card and assume that everything will be sorted out afterwards, as long as I have my paper records?

What I would do if you haven't received the credit prior to your payment being due (or you could even do it now), is go in and dispute the charge. You should be able to do it online. I've done this many times in the past. When you do get the refund you can notify your credit card company to remove the dispute.

 

[SeekingToGetOut]

Thank you for the advice, everyone. I have sent a fax and also the letter via certified mail. I am still well within the 7 day deadline. From this point on, it's just a waiting game, as far as I can tell. The minute I see the charge has been reversed on my credit card account, I will let you know how much money was saved officially.

 

[Grammarhero]

Thank you for the advice, everyone. I have sent a fax and also the letter via certified mail. I am still well within the 7 day deadline. From this point on, it's just a waiting game, as far as I can tell. The minute I see the charge has been reversed on my credit card account, I will let you know how much money was saved officially.

@SeekingToGetOut We hope your rescission and deposit refund were successful. To track TUG rescission savings, mind sharing how much you saved with rescission? As half of tuggers initially bought developer/retail TS, there is no shame.

 

[SeekingToGetOut]

Yes, thank you everyone for advice (and for the advice in previous threads).

Turns out I had nothing to worry about with timing. My rescission letter was accepted very quickly, within 8 days of sending the letter. I was even sent a letter verifying the contract had been rescinded within two weeks. By the time my credit card payment was due, it had long been removed from my account.

Overall, I ended up saving $23,000