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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

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  • 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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  • 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.

  • Eric ClaptonMay 3, 2014, 11:21 am

    I hear from consumers on a daily basis who have been duped by similar schemes. The single best piece of advice that I can impart to any timeshare owner is to NOT do business with ANY person or organization who initiates contact. No exceptions.

  • EUSKAL REDUCHERRYApril 15, 2014, 2:53 pm

    Why should anyone pay so much for something that he may not use when or how he wants? I had a timeshire and two happy moments When I bought it and most of all WHEN I SOLD IT! Now with the money I save in that lousy investment I can plan my travel ahead using Internet plane plus accomodation.. it is a lot cheaper, I travel when I want, and I do not have to worry about maintenance, taxes etc.. I would never recommend a timeshare property to no one… and did you know you can not give it in heritage to your sons? If the family decides to sell it you lose… it is nothing yours it is theirs Very very bad business… never buy it again, never in my life!!!

  • AmandaApril 15, 2014, 2:20 pm

    We could not afford to pay the dues anymore. The timeshare that we had stated in a letter that we would have to forfeit/surrend the timeshare if we didn't pay the dues. After contacting them and speaking to them, we surrender the timeshare with the understand that if we did this, the dues to would be forgiven since we gave it back. NOW, we get a letter from a collection department stating that we owe this money. What do I need to do?

  • MikeApril 7, 2014, 7:29 am

    how do you cancel this I have only had it for two months and was lied to about the maintenance fees.

  • Monserrat GonzalesSeptember 14, 2012, 8:19 am

    Me forzaron a firmar la compra de tiempo compartido pero no di anticipo ni he hecho pagos no tengo tarjeta de crédito ni he ocupado ningún servicio de lo que me ofrecieron y no tengo para pagar aun así me pueden obligar legalmente a pagar? Si puede se lo agradeceré me conteste y Oriente

  • Abel MirafloresJuly 24, 2012, 5:08 am

    Uds me pueden ayudar si ya estoy en buro de credito como deudor o que tengo que hacer en este caso?

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