Timeshare Cancellation Industry Has Become the Wild West.
Timeshare Cancellation Industry has turned into the wild west. Pricing is not standardized. Services are similar and everyone seems to put a lot of fluff into their consultations. The guarantees, and proven results are all hype of the actual strategy and proven tactics are not done. In fact, most cancellation clients do not feel the negative effects until years later. In some cases, the exit company has gone out of business or changed ownership. What I mean is you have a cancellation letter, but the debt has been transferred to a debt collector and now they come after you 3-4 years later.
We have monitored the timeshare cancellation industry for over 8 years. We have developed the strategic and more effective way to help timeshare owners. These services are done to protect the client as much as possible and not give false hope of swift resolution with no collateral damage. Most exit companies have no idea the damage they are causing to their clients, or even the laws they are breaking to make hundreds of thousands of dollars per week. The terms they use are a false shelter against federal regulations. As law firms are indicted, exit companies are shut down, and all the owners re open new firms with new names the industry keeps moving along.
We have provided a list of strategic services which should be in every timeshare owners process for cancellation. These are not optional but are the only regulated way, with the least amount of risk. Who wants to pay $4000-$7000 to cancel their timeshare and be left vulnerable to debt collectors, lawsuits, wage garnishment, or even liens on their home? No one. But timeshare owners are being deceived everyday by the timeshare cancellation industry. The term consumer advocate should not be allowed in this industry.
Timeshare Cancellation Read for Disclosure.
There many companies out there who promise timeshare cancellation. But not all of them can deliver the results you want. In fact, many companies do not cancel your timeshare at all but allow you to fall on your face with a line of debt collectors harassing you or even foreclosure. After years of market testing and research we found even the so-called timeshare cancellation attorneys provided minimal or no cancellation results whatsoever. This is alarming.
We have been in the timeshare cancellation industry for over 8 years in different capacities. Our main staff has done deed transfers, contract reviews, consumer rights violation investigation, and credit management. These are all the areas 99% of the current timeshare cancellation companies have zero experience in and have no desire to start.
Why you ask?
Regulations, lack of industry experience, and changing the current way of earning thousands and thousands of dollars is too easy. Why change it?
If you have been receiving quotes to cancel your timeshare, we know exactly what you went through 30-45 min long presentations. They explained how your rights were violated, the showed you on eBay your timeshare is listed for one dollar, they asked you what you were lied to about, and then they gave you a quote with all sorts of guarantees. These presentations ended with a quote of $3000, $4000, $7000, heck even $12,000 + depending on how many timeshares you have and your willingness to pay to cancel your timeshare.
The fact of the matter is most timeshare cancellation companies quote you based on how much you owe. They asked you series of questions to find out your “value”.
How much is your timeshare mortgage payment?
How much is your annual or bi-annual maintenance fee?
How many years have you owned your timeshare(s)?
How many timeshares do you own?
What resort do you own?
What lies did the timeshare company tell you? Or do you feel scammed?
All the questions compile a formula for your pricing.
What many people do not understand when a company is basing their pricing on how much you owe and want to redirect the payments to them. Maybe they want you to stop paying the timeshare company they are acting as a debt negotiation and settlement firm. Especially when they tell you how much money they are going to save you by removing the monthly timeshare payment and sending it to them for your timeshare contract to be cancelled.
As a debt settlement or restructuring firm you are not allowed to charge a client in advance. There are some exceptions to this rule, but we assure not one company we have investigated is doing it. Like only meeting their clients in person or receiving a negotiation from the resort and the clients make one full payment to the agreed cancellation, or settlement. If any payment is taken prior to the cancellation, settlement, or restructuring it is a federal violation and the Federal Trade Commission has a field day with the timeshare cancellation company.
What does any of it mean?
Most of these exit companies operate in grey areas or even completely illegal practices to convince you to cancel your timeshare. The cancellation industry is filled with scams and it is ever growing.
The solution is simple, and you must be proactive. How to spot the fraudsters?
Below are questions the key questions every timeshare owner must ask:
Do I have to stop paying my timeshare to cancel the contract?
Do you remove the debt of my timeshare?
Do you get rid of the credit cards used to buy the timeshare or new cards obtained for the down payment?
Do you stop the harassment from the timeshare company?
Do you guarantee to cancel my timeshare in ___ months/years?
Do you have an attorney that,” overseas” the program?
Some of the above statements if answered yes to them is not 100% true. It is almost impossible to state you can guarantee all of these or even do them as one of the current timeshare cancellation companies find online.
Cancelling or removing the debt is not up to the exit company but the resort. And anytime a company is saying they can remove the debt they are now acting as a debt settlement firm and cannot charge you upfront, If they do, then report them to the FTC and they most likely will be shut down in a month.
They cannot remove credit card debt or stop the phone calls from the resort because they are the original creditors. This means a cease and desist order is ineffective and the resort does not have to abide by the demand. They are the original creditor and has the right to collect their money. Sending out a cease order is just for show and to build their value with the customer.
We see 90% of the exit companies state they have an attorney who “overseas” their program. This attorney is hired as general counsel and placed on the website to give false sense of legal aid for the client. Sometimes they even make themselves look like a law firm. Practicing law without a license is a felony and is enforced resulting in the company shutting down and hefty fines or even jail.
So now you have been informed about the timeshare cancellation industry and hopefully you can weed through the good, the bad, and the ugly.
Targeting of Timeshare Owners:
The timeshare owners feel as though they have been scammed. The value of their timeshare is not what they thought it would be. The likelihood of reselling it does not exist. These facts are demotivating and enrage many owners to making drastic decisions. The hunt of a solution is on. This next step is where many timeshare owners make the mistake by hiring company to cancel their timeshare and make that decision based on emotions not facts.
When researching a solution request the strategy they will use. How will you get me out of this timeshare? How will you protect me? What happens to all the money I owe them?
These should be your main questions and a solid plan of action should be put in place for your specific situation. Most timeshare cancellation companies have 20-30% success in cancelling the timeshare in the first year, 30-45% in 2 years, and 15-20% in 3 years. 80% of the timeshare cancellation companies do not deal directly with the resorts, credit card companies, debt collectors, timeshare attorneys, and HOA’s. They do most of their work in disguise as you. Where this is normal tactic, but it is not effective for the whole process and over time now seems to be a bit fishy.
So, the main question, how much does it cost?
To cancel your most hated maintenance agreement typically cost $1200-$1800. This is the dispute, negotiation, and paperwork development it will take to end the lifelong ongoing bill.
Credit Card Debt:
Relieve your credit card and the debt that goes along with it is done over time. The payment for this service is not done until the settlement or the removal has occurred. The average cost of this service is 20%-25% of the total amount enrolled.
Debt Collector Protection:
Debt collectors has not started to harass you. They may even have put a negative mark on your credit report. If you have stopped paying the timeshare mortgage most likely some negative marks have already been placed on your credit report. Debt collection protection, and Fair Debt Collection Defense is typically done by attorneys, but also can be done by credit and risk managers. This fee ranges from $500-$2000, given the size of the debt, how any accounts, and how many collection firms are coming after you. Expect the average fee to 1% of the total amount enrolled.
Credit Monitoring and Management:
Credit Management is the disputing, investigating, and monitoring of all three credit reports. The term credit protection is not valid due to the fact no one can protect anyone credit from valid reporting of accounts. Not even the Federal government can force one of the three independent consumer reporting bureaus to change the info, which is accurate. However, most of the timeshare accounts are inaccurate or are being reporting illegally violating the Fair Credit Reporting Act, (FCRA) which only a Certified Credit Manager would identify. This service cost on average $600-$1300 a year ($69-$129 a month).
Deed Transfer/Title Search:
Deed transfers are the solution to cancelling your contract, but it must happen when the contract is cancelled. $300-$400 is the state filing cost to transfer a deed. There have been many title transfers companies in America who will transfer your deed to an offshore company and bankrupt it years later. Once the discharge as been announced the timeshare companies are not forced to accept the bankruptcy or the transfer. They are not notified, and they defiantly did not accept the transfer. So, spending $3000 + on title transfer just to have it return in 3-4 years later or for the debt to be sent to a collection agency. Either way you are paying money on top of the transfer.
Title/Deed Fraud Investigation:
Title and deed fraud are common among timeshare companies. The counterfeit signatures and inaccurate account numbers, and dates are proven in 30-40% of all timeshare deeds. Title searching is to ensure the recording of the deed, and the accuracy of them are valid. This service is used to not only find the deed but to potentially dispute the validity of it and detest counterfeits. The title and deed search are typically $200, and the title fraud investigation is $400-$1000. However, a good timeshare relief firm will have this service included in their pricing, but ensure they conduct this strategy if not they are out of date.
Timeshare Cancellation Lawyers are not always the answer. Most of the firms are going to send out standard demand letters stating your rights have been violated and request for the contract to cancelled. They have the same results as a non-lawyer firm of 20-30% tops on success of timeshare cancellation I the first year. The lawyers will not litigate any case against these timeshare companies because the facts are overwhelming against the timeshare owner. Foe example, do they have a contract with your signature? Did you make any payments to the contract? Do you have any cancellation requests made to the timeshare company in writing? Did you try to cancel during the rescission period? Did you open a credit card to make the down payment? Did you make the payment?
Well the timeshare company must prove these statements are in their favor which they typically are. So, the attorneys already know they are going to lose. A lawyer cannot give you a money back guarantee and charge a retainer with a best efforts result. In fact, law firms like Castle Law Group where shut down and indicted for fraud. So, do not be confused that law firms do not break the law and scam people too.
The average cost of a lawyer’s retainer for timeshare cancellation of a single contract is $4000-$12000. This is a ton of money especially with no money back option. timeshare cancellation industry
Asset protection has never been introduced to the timeshare cancellation industry until now. This service has helped thousands of timeshare owners have a peace of mind till the day they pass away knowing the timeshare company or anyone can come after their assets. Having a full asset investigation and have them placed into trust is critical for everyone. This has started to become standard among credit and risk management firms. The average cost of asset protection is $400-$1200.
Timeshare Cancellation Done Right:
The programs and services listed above should be incorporate into every timeshare cancellation. Not all of them of course but most of them. When having a consultation with an exit company for a timeshare cancellation lawyer ask about these services. Question them on their strategy to see if these vital actions are being done. If they are unaware of them or state, they are not required run to the winds. These are timeshare contract cancellation, credit/debt resolution 101. I hope this helps.
Free consultations should include the road map of your specific plan, your credit, the risk associated with debt collectors, your asset protection, and your deed instigation plan. Most of the exit companies do not have access to this information. The question is if they do not have access to it and rely on you for the information how are they to find the truth? Most timeshare owners don’t know what they have and relying on the client to provide all the materials for the disputing of a legal contract, breaching a contract of a multi-million dollars company, and leaving themselves open for federal lawsuits is ridiculous. timeshare cancellation industry
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