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Timeshare Debt Collections? Can The Resort Affect My Credit Score?

Timeshare Debt Collections? Can The Resort Affect My Credit Score?
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The main reason people stick to their timeshares is because they are afraid that the resort will affect their credit score if they stop paying for it. Learn the possible outcomes you, as a client, have to cancel your timeshare but also protect your credit score at the same time.

Are you no longer able to afford your timeshare?

     Many clients contact us because they have had a change in their financial situation, such as a loss of employment, or sickness in the family, and they cannot afford to pay the amount agreed upon in their contract or promissory note. In other cases, the timeshare was sold in a fraudulent manner and the client was not fully aware of all of the fees that would be involved for the monthly payments, maintenance fees, special assessments, or other additional fees when using the timeshare.

Each situation and contract is different; however, if you do not make the payments, the timeshare developer will likely take you to collections after you miss your first payment. They may report you to the Internal Revenue Service (IRS) or Canada Revenue Agency. This can ultimately affect your credit score, making future financial investments very difficult.

They are several rumors that if the timeshare was purchased in Mexico, collections agencies are not able to affect your credit in the USA or Canada. This is not true. If you have signed a valid contract and/or promissory note with a timeshare developer, you have an obligation to pay them until the balance is paid off of the purchase price, or to pay the annual fees for the time period outlined in the contract.

A common method of payment for timeshares is by credit card. Upon realizing that they do not want the timeshare anymore, people will dispute the charge with their credit card. Many times the initial dispute is won, and the charge will be credited back to the credit card. Even though the dispute has been won with the credit card company, you can still be taken to collections as the resort will state that they have a valid contract and request another form of payment.


If you default on your payment, you may receive correspondence in the form of mail, emails or telephone calls from collections agencies such as Concord Servicing Corporation, Resort Recovery Solutions, Monterrey Financial Services, or Textron Financial Corporation. They will try to contact you through every avenue possible to collect the debt owed. Some clients have even commented that they have contacted them at their work and on all their cell phones, including their teenage daughter’s cell phone. They can be very aggressive in their collection tactics, almost verging on harassment, making an already difficult situation even more uncomfortable for the client.

In order to ensure that the collections agencies are effective, the resorts only pay them on a contingency basis. As such, the collections agencies only get paid if they are able to collect from the client who is in default of their payments. This causes the debt collectors to be more ruthless in their collections tactics as they want to ensure that they are not wasting their time and get paid for their services.

As a consumer it is very important that you are aware of your rights and the laws and acts put in place to protect you from harassment by collection agencies. The Federal Trade Commission, the consumer protection agency in the US, is responsible for enforcing the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using unfair, abusive or deceptive practices in their collection efforts. There are several restrictions placed on debt collectors; however, as an educated consumer, it is important to know what they can and cannot do so they you can ensure that they are following legal protocol.

For example, debt collectors are not permitted to call before 8am or after 9pm unless you have agreed to speak to them at that time. They are not permitted to call you at work if you have advised them, orally or in writing, that you cannot receive calls there. These are just a couple of examples of the restrictions outlined in FDCPA.

Even if you are a true victim of timeshare fraud or you feel your contract is invalid, the timeshare company can take you to collections if you fail to make payments.  In order to avoid being taken to collections and damaging your credit score, it is very important that you properly cancel your contract with the resort before stopping to make payments.

If you hire the services of Mexican Timeshare Solutions, we will work hard to ensure the smooth cancellation of your timeshare contract, and while we are working on your case, you can stop making payments to the resort. This is the benefit of working with an experience, reliable, and trustworthy firm to handle your case.

Cancel your contract today and avoid the stress of being taken to collections!

 Information to Sahre

If you liked this article, please help us to share this information to more people in order to avoid more timeshare scams victims, how?

  • Share this link http://www.timesharescam.com/blog/76-collections-can-the-resort-affect-my-credit-score/ on your favorite blogs and forums.


Leave your comment below and share your opinion with us. To know more about timeshare scams go to: How much do timeshares cost?


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  • matilde landaJuly 14, 2016, 12:28 pm

    Necesito cancelar 3l tiempo compartido de un resort que tanto afecta mi credito

  • CarmenSeptember 28, 2015, 1:10 am

    Of course , and that could be one of the biggest problems out there ! just dont get involved on timeshare business and you gonna be ok .. i was scammed twice, first when i assisted to a timeshare presentation and 2 when i decide to make an upgrade, so dont believe on timeshare promises

  • DallasDecember 15, 2014, 8:11 pm

    Hope not on a direct way , but obviously affect to our economy , in fact timeshares is not a good investment at all

  • RickOctober 11, 2014, 11:47 am

    There are many companies offering to help people who have been victims of timeshare fraud and collect money in advance for doing so. There are companies that even offer cancellation insurance. You must be careful because this could be someone wanting to scam you again.

  • JorgeOctober 6, 2014, 7:38 am

    es muy dificil cancelar contratos de tiempo compartido, las empresas estan preparadas para hacerte larga la espera... muuuuuy larga la espera

  • kittles35September 12, 2014, 3:22 pm

    Thanks for the info! I've only had my timeshare for two years now, and have been doing my homework here on MTS learning all about it. I think my husband would have a heart attack if we received one of these.

  • JayJuly 1, 2014, 11:01 am

    No one in their right mind buys a timeshare as an investment.

  • JayJuly 1, 2014, 11:01 am

    No one in their right mind buys a timeshare as an investment.

  • RobintJune 19, 2014, 7:49 am

    My husband defaulted on timeshare unfortunately back in 2009. We are now in the position to settle the debt. The timeshare company said it would note our credit report as ZERO balance paid in full. We were told by a builders' mortgage company that even with this verbiage on our credit report we still have to wait 3 years before we would be able to be approved for mortgage because defaulting on a timeshare is the same as a foreclosure. This is the only thing on our credit that is preventing us from building. Is this true?

  • UnemployedJune 5, 2014, 7:11 am

    I've had my timeshare for 15-20 years now. Can I get some money back? I don't use it, just pay the maintenance fee every year.

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