What is the Statute of Limitations on Maintenance fee Debt in Florida

[saturn28]

I would like to know the statue of limitations for Maintenance Fees debts in Florida for timeshares. I read somewhere it is 5 years.

 

[Saintsfanfl]

It's five years for just about everything as far as the court process for collection of the debt is concerned. The debt itself doesnt actually ever expire unless you file bankruptcy. The five years though would start from the inactivity point and not from the written contract. In other words it would not start when you made the agreement and instead would begin when you last paid maint fees.

 

[Saintsfanfl]

Also there is no statute of limitations on collection. In other words if the court process was filed before the 5 years and a judgement has or will occur then the statute of limitations does not apply and collection enforcement can occur. The limitation is only on the initial court filing in order to get the judgement.

 

[saturn28]

Also there is no statute of limitations on collection. In other words of the court process was filed before the 5 years and a judgement has or will occur then the statute of limitations does not apply and collection can occur. The limitation is only on the initial court filing.

When you say court filing are you referring to a lien put on the timeshare.

 

[Saintsfanfl]

It would be the filing date in order to obtain the judgement unless the lien process can occur without a judgment. I am not certain but in either case it would be the very first date of the entire process. The first date of the court record of the attempt to collect the debt. It has to be within 5 years of the most recent activity on the debt. If the property is still owned and maint fees are still being charged then the 5 years hasn't even started so the limitation would not be applicable because the "debt" is still active.

 

[Saintsfanfl]

It's five years for just about everything as far as the court process for collection of the debt is concerned. The debt itself doesnt actually ever expire unless you file bankruptcy. The five years though would start from the inactivity point and not from the written contract. In other words it would not start when you made the agreement and instead would begin when you last paid maint fees.

Correction it is not from when you last paid maint fees. It is from when you were last charged maint fees.

 

[dioxide45]

Correction it is not from when you last paid maint fees. It is from when you were last charged maint fees.

Wouldn't each MF bill have it's own statute of limitations?

 

[Saintsfanfl]

Wouldn't each MF bill have it's own statute of limitations?

I do not believe so. The statute of limitations refers to an account and not a "bill" or "charge". It also specifically states the limitation period begins at the last activity for the account. Activity is defined as the date of something owed or paid and not fees or interest charged and controlled by the creditor. The creditor has a right to collect through the courts on the entire account within the limitation period.

One of the reasons it works this way is that in theory you could have an agreement to let charges accrue and pay at some point in the future. The 5 years allows for this type of agreement where the creditor would still have an opportunity for a judgment on the entire amount. It would not be fair in this case to exclude a portion of the debt because the creditor may have initiated action at the first chance they had based on the default of the agreement. Paying the minimum on a credit card bill for 10 years is the perfect example. By paying the min the creditor is keeping the account in good standing and the statute of limitation period has not yet started because payments are still being made.

 

[Hobo1]

Your law is a bit fractured.

The MF is an annual contract and once it becomes past due is a separate obligation from any other MF. Your example of a credit card balance is not valid because credit cards have their own set of laws.

Statute of limitations in the U.S. is an affirmative defense. What that means is that even if the statute of limitations has passed, a creditor can still file suit and receive a judgment if the debtor fails to file an answer to the original complaint stating that the statue of limitations has expired.

 

[saturn28]

The Question has Been Anserwed below by a Lawyer

Customer Question

MY wife and I allowed a Florida timeshare property to "go back" to the company owning the business in 1999. We did this because shortly after purchasing the timeshare because they doubled the annual maintenance fees. NO activity from them or us has occurred since then. They are now suing us for 2004 - 2009 maintenance fees. Does not a statute of limitations apply here?

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Expert: legally sound replied

OK. Thank you for that information.

At this point you really do not know what documents they have, but legally I cannot see how they could prevail in court.

The statute of limitations is 5 years on a written contract, which at some point in the past I have to assume existed. Still, from 1999, that brings us to 2004 when that statute expires and essentialy lets you off the hook.

So what you need to do is simply appear on the scheduled date. You cannot NOT show up because you will force the court to enter a default judgment against you, which would have the same result as you losing the case. Tell the judge the truth. Both of you should go and do this. Explain that you have not heard anything from this company nor received any documents in all these years. Also explain that you have never made, nor been asked to make any payments on any amount and you had no idea any amounts were even owing. Tell the court that on a written contract, if the company can produce one at trial at all, the statute of limitations is 5 years and this time has long since passed.

That is your best option at this point and I cannot see how a court would find you liable when the time has passed and you have not explicitly re-affirmed the debt or impliedly done so by making any payments. I think you will be fine. Thank you.

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Customer Question

I just received a bill from a timeshare company
for $6,000. The charge is for maintenance fees for 2010 usage year @
$562.08 + property taxes @ $75.98. There is also a charge for a previous
balance for $5,245.63. The problem that I'm having with this is that
I've not recieved an invoice from them since 2003 (for usage year 2004)-
isn't there a statute of limitations for collecting a debt like this?
I'm desperate for help.

Fact of the matter is that I haven't even
thought about the timeshare for a long time. I used it once or twice and
then tried to sell it (which was a disaster in itself)and when I gave
that up I just paid the maintenance fee every year to keep my credit
good.

What I'd like to do now is get out of this completely. I can't
afford to pay them $6,000. bucks to keep my credit score good since I
work in the construction industry and we're not sure how much longer
that we'll all have jobs. Should I just let it be foreclosed on and be done with it?


Expert: NateLawAnswers

Thank you for your question.

The statute of limitations on contract claims (this is a contract claim, an agreement to pay money for a good or service), is 5 years. If they don't bring a lawsuit on amounts owed before 5 years, the action would be barred. Any amount billed more than five years ago you can safely ignore.

If you haven't been able to sell it, it may be better to let it go. A foreclosure will hurt your credit, but it could also reduce any potential liability you have on the back owed amounts. It is a tradeoff you'll have to weigh.

You may want to offer some sort of settlement (say something like 1/4 of whatever is owed, and convey the time share back to them. That way you avoid foreclosure). If they haven't invoiced you regularly and they have gotten nothing out of you in some time, negotiation could produce a good result.



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