Travel

Timeshare purchased, I wanna cancel

  • Last Updated:
  • Feb 12th, 2019 7:07 pm
[OP]
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Oct 24, 2011
446 posts
182 upvotes
Kitchener

Timeshare purchased, I wanna cancel

Hi guys,
I signed up for timeshare in Mexico 2 years ago, spent about $10000
Problem is that communication with these guys is just pain, pretty much I can’t really do anything.
Innitial payment was $3000 and I gave them credit card information to deduct monthly payment.
since they are not willing to help me, and I am not happy with them.... what’s going to happen if I just change my credit card or cancel my credit card?

They have my old home address and old phone number.

Please help
41 replies
Sr. Member
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Dec 24, 2007
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BC
Nothing other than your credit rating takes a hit for the default. They will try to hound you on the missed payments (if they can find you) and then foreclose on your property. I guess you have given up on the $10,000 as lost money?
[OP]
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Oct 24, 2011
446 posts
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Kitchener
WetCoastGuy wrote:
Feb 5th, 2019 6:34 pm
Nothing other than your credit rating takes a hit for the default. They will try to hound you on the missed payments (if they can find you) and then foreclose on your property. I guess you have given up on the $10,000 as lost money?
My credit score can get hit for this?
I will be only losing $3000 which was downpayment.
Deal Addict
Feb 22, 2016
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ggman8988 wrote:
Feb 5th, 2019 6:58 pm
My credit score can get hit for this?
I will be only losing $3000 which was downpayment.
You signed a contract and they can and will hold you to it. I'm sure part of what you signed for was a credit check, no different from getting any other financing... if you signed off on that and then renege on the contract they can punish you that way just as well. You didn't know that timeshares were bad? Not the biggest secret in the world....
Member
Dec 20, 2018
312 posts
227 upvotes
WetCoastGuy wrote:
Feb 5th, 2019 6:34 pm
Nothing other than your credit rating takes a hit for the default. They will try to hound you on the missed payments (if they can find you) and then foreclose on your property. I guess you have given up on the $10,000 as lost money?
I doubt a timeshare in Mexico can do anything against Canadian credit rating of op

I know of many people who took out loans from banks for houses/cars in other countries (while working as expat) and nothing happened to their credit or even a letter in the mail

Though I suggest they don't go back to those countries lol
Deal Addict
Mar 21, 2010
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Toronto
StatsGuy wrote:
Feb 5th, 2019 7:40 pm
I doubt a timeshare in Mexico can do anything against Canadian credit rating of op

I know of many people who took out loans from banks for houses/cars in other countries (while working as expat) and nothing happened to their credit or even a letter in the mail

Though I suggest they don't go back to those countries lol
It depends if OP went to Mexico and signed up for a timeshare with a local Mexican company, or whether it's with a Canadian company that offers timeshares in vacation destinations such as Mexico.
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Feb 19, 2010
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I'd be surprised if anyone outside of Canada would pursue this debt at all given that by walking away they have more inventory to sell to some other sucker.

My MIL had THREE timeshares that she finally got tired of paying the ever-increasing annual maintenance for (getting to the point, if not already, of being higher than what one might otherwise just rent the place for as an outsider) so just told them to pound sand and hasn't heard a word since.

Having said that, I'm also surprised that anybody buys timeshares any more. I thought that the whole concept had been thoroughly debunked a couple of decades ago. Who knew?
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Feb 22, 2016
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Conquistador wrote:
Feb 5th, 2019 10:14 pm
I'd be surprised if anyone outside of Canada would pursue this debt at all given that by walking away they have more inventory to sell to some other sucker.

My MIL had THREE timeshares that she finally got tired of paying the ever-increasing annual maintenance for (getting to the point, if not already, of being higher than what one might otherwise just rent the place for as an outsider) so just told them to pound sand and hasn't heard a word since.

Having said that, I'm also surprised that anybody buys timeshares any more. I thought that the whole concept had been thoroughly debunked a couple of decades ago. Who knew?
Very true. They would just keep the deposit and "flip" the timeshare to the next sucker. No different from foreclosing on a house -- you abandon it, the bank gets the property back, keeps all the money you paid into it so far, and simply resells at full market value. Pure profit.

As for your second point, you'd have thought online retail would have meant the end of MLM pyramids. Nope, still see a lot of suckers falling for Amway, Mary Kay, Avon, Amsoil, Primerica, etc... So of course there are still suckers buying timeshares.
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Feb 22, 2016
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Manatus wrote:
Feb 5th, 2019 7:49 pm
It depends if OP went to Mexico and signed up for a timeshare with a local Mexican company, or whether it's with a Canadian company that offers timeshares in vacation destinations such as Mexico.
Very true. if the OP is dealing with a purely Mexican operation, just don't return there as @StatsGuy says.... but if it's a Canadian or American company they might well come after him via collection agencies, hits on the credit report, etc.
Deal Addict
Sep 29, 2005
4642 posts
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Montreal
My cousin had a timeshare in Fort Lauderdale. Eventually, he bought a house in the area and decided not to pay his annual maintenance fees. Once he owed them for a few years, he negotiated with them to just give the timeshare back to them. The difference is that he didn't just walk away. He got them to agree to the arrangement. His credit score didn't suffer. Nor did he have to stay away from the US.
Phils
[OP]
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Oct 24, 2011
446 posts
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Kitchener
Manatus wrote:
Feb 5th, 2019 7:49 pm
It depends if OP went to Mexico and signed up for a timeshare with a local Mexican company, or whether it's with a Canadian company that offers timeshares in vacation destinations such as Mexico.
Yeah this was Palace Elite membership, and yes I signed when I was in Mexico.
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Jul 4, 2004
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Ottawa
Conquistador wrote:
Feb 5th, 2019 10:14 pm
I'd be surprised if anyone outside of Canada would pursue this debt at all given that by walking away they have more inventory to sell to some other sucker.

My MIL had THREE timeshares that she finally got tired of paying the ever-increasing annual maintenance for (getting to the point, if not already, of being higher than what one might otherwise just rent the place for as an outsider) so just told them to pound sand and hasn't heard a word since.

Having said that, I'm also surprised that anybody buys timeshares any more. I thought that the whole concept had been thoroughly debunked a couple of decades ago. Who knew?
There's a big difference in the scenarios; your MIL had probably paid off the initial investments and was just on the hold for the maintenance fees. If you stop paying the fees, they'll just "foreclose" or whatever and sell it to someone else. The OP probably signed a contract to purchase the timeshare for $x (e.g. $20k to $50k+) and likely has only paid the downpayment or a few payments (they often amortize the purchase over 10 to 20+ years. They will not likely just "forget about it". I believe the Palace Timeshares are owned by a company based in Florida and I suspect that they have a department that just deals with this sort of thing.

For the OP, my suggestion would be to talk to them to see what's involved in cancelling. Find out exactly what you owe and your obligation and then make an educated decision. There are tons of companies that sell timeshares but I believe you typically only get a fraction of what you paid (or nothing at all) but at least it frees you from the obligation.
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Jun 15, 2015
1734 posts
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Mississauga, ON
ggman8988 wrote:
Feb 6th, 2019 8:38 am
Yeah this was Palace Elite membership, and yes I signed when I was in Mexico.
Not to kick you while your down- but I recall a few posts on here about Palace Elite Memberships.

Being familiar with the chain I can say they offer a great vacation stay. I’ve actually never heard anything good come out of anyone signing up for a timeshare with any resort/chain.

But the math in regards to the costs to sign up for X amount of years with them (from a Canadian perspective as everything is in USD and unlike the Americans we have an abundance of tour operators to choose from who ALL negotiate rates in CAD- it makes 0 sense). I know some people purchase memberships second hand- is that an option?

Palace Resorts head office is in Miami so they are based out of the US (I can vouch as I’ve been to their head office personally). I don’t know how that affects credit scores or what not.

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