Timeshare Cancellation Industry Standards Evolve
Timeshare cancellation is relatively a new industry. It was developed roughly 14 years ago and has been growing rapidly as timeshare sales has. New timeshare sales are a $9.8 billion dollar industry making it larger than baseball. This number dumbfounds most people. Most people believe with easy access to the internet and information sharing the timeshare market would dwindle and the house sharing websites would takeover. Well unfortunately with exchange programs, multi million-dollar marketing campaigns, and corporate budgets as big as all the Saudi princes combined the timeshare industry towers over traditional real estate and peer to peer vacation rentals.
As timeshares developed a dark reputation but still many Americans have a difficult time turning down the massive discount offers, free gifts, and exclusive travel deals piled on the table during the closing of the new 4 bedroom lock off. Unfortunately, with all the free gifts and discounted deals timeshares still cost and will bring the average families finances to its knees over the course of the 10-year mortgage, and the lifetime of maintenance fee’s. The ever-growing group of timeshare owners begging for relief could not have come fast enough and the timeshare cancellation industry is born. If you follow this new industry of timeshare cancellation there is an abundance of companies Clint Eastwood would call the good, the bad, and the ugly. The timeshare industry is littered with scams ranging from resale, rentals, exit, and even the resort themselves. The timeshare cancellation industry was birthed from predominantly from a set of parents leading the real estate industries fraud statistics of 60-70% chance of being scammed. This can be compared to real estates STD, 1 in 4 are going to get the timeshare rash where anti-biotics aren’t going to remove the maintenance agreement, high interest mortgage, or even the maxed out credit card used for the deposit.
Timeshare Cancellation Process:
The timeshare cancellation industry I call the grandfathers industry. What is the grandfather’s industry you ask? Well it is an idea, a routine, a recipe, strategy, or process handed down from grandfather to father, from father to son, and from son to grandson. This process goes from generation to the next or from one boss to ex-employee and so on. However, even though the industry knowledge is passed from one to another it has not been updated. The evolution of most industries naturally happens. The process for timeshare cancellation has barely changed but the timeshare contracts and their legal staff have.
Timeshare companies have spent millions of dollars in speech specialist, economist, phycologist, sales gurus, linguistic masters, and legal analysts to ensure the formula is perfected to get the customer to say. “YES”. Believe it or not they have done one hell of a job too. Most timeshare owners I meet said to their spouse while walking in they would never buy one or “they aren’t gonna git me” to leave the resort with one or even two contracts of a timeshare they will never use nor afford.
I Need To Cancel My Timeshare:
Well after the arrival to the home front most timeshare owners are out of their rescission period and are technically stuck with this newfound money pit and are demotivated to learn their exit options are limited. So, the hunt is on. “Hunny, we need to get out of this darn thing” most spouses say to each other after reading the financial schedule, or their payments start automatically drafting from their accounts. I have seen monthly payments from $79 a month to $15,000 a month. Yes, when you hear someone tell you they pay $15,000 per month for a timeshare it is difficult not to giggle because it almost seams like a prank. Unfortunately, it is not.
Timeshare Cancellation Research:
Researching the internet for the best solution is where 90% of Americans go to find answers. The internet houses some of the most trusted information known to man as well as the top scams of the century. The please provide me your Paypal password so we can process your special gift from corporate office or the IRS has a lien on your social security number and I must pay it off to get my tax return seems to be in everyone’s inbox nowadays. So, it is safe to say most websites, videos, blogs, social media, and pictures have a variety of inaccurate information. Well almost the whole timeshare cancellation industry is web based except the traveling timeshare exit gypsies that show up in your town like a shady carnival and charge timeshare owners 5-10 times more than any respectable business. A good rule of thumb I tell my staff, “How much would you charge your friend? Or your family friend? Even your neighbor?” If that number is different then what you are charging a stranger the pricing model may be skewed or that firm may be part of the bad or ugly on Clint’s scam formula.
Timeshare Cancellation Costs:
Today most timeshare cancellation firm quotes their new clients based on their debt. They taker the years left in the mortgage and times it by the yearly payment which gives them the 10-year mortgage amount. Then they add 20-30 years of the maintenance fee increased by 5-10% annually or biannually. This number then is multiple by 10-20% and voila! There is your timeshare cancellation quote. Well this number varies per client and historically is unfair to the customer.
Charging a client based on their debt and portraying the form of debt restructuring or removal is operating as a debt settlement firm. Operating as a settlement firm the Federal Trade Commission (FTC) has set federal laws and regulations to combat fraud. The regulation in place states a debt settlement firm cannot charge a client in advance unless the negotiated payment plan or settlement is agreed by both the original creditor and the debtor has accepted, and there has been one full payment to the new agreed upon payment plan. If these two conditions are not met the settlement firm is committing a felony and can be shut down, fined, and even worse the owners may be indicted potentially resulting in federal prison sentence.
Most timeshare cancellation companies are unaware of this and are only looking at how much money they are saving the client by allocating the mortgage payment or maintenance fee to themselves and not the timeshare company. Again, this is debt restructuring which is regulated by the FTC where both previous conditions must be met to operate legally. Also, a custodial savings account or a special purpose account must be created where the client has full control of their money while the negotiation is being conducted. This account is never made for a cancellation client nor have I heard any exit company state they are planning on doing it.
If there is not regulation like debt settlement, or a custodial account where the client controls the money the client is at risk of being defrauded. This became as massive problem as timeshare resale and rental companies where defrauding owners of millions of dollars and where being raided by the FBI on a monthly basis. How do we market trust? Well one company in south Florida came up with the escrow option. It sounds great but for any small to medium size business who works on a service for 8 months to 2 years with out any payment is a horrible business plan. This escrow options became the main sales tool 2 years ago and ended recently as multiple firms closed their doors and the large timeshare owner clientele ended up in a worse situation then if they paid for the exit upfront and kept the business going.
The escrow firms closed their doors and left thousands of timeshare owners with default accounts, collection agencies suing them, foreclosures, and even a judgement where garnishment of wages has occurred or about to be executed. I am sure they wish they did not escrow anymore.
The removal of “escrow options” brought the binding of liability insurance, and general liability to protect against business going bankrupt or clients being sued by the resort for actions a timeshare cancellation company has done. This development in the industry was well deserved and has now become a standard among exit companies. The bond and state corporate licensing was after giving the sense of protection to the timeshare owner.
All the insurance and bonds are great for protection and marketing timeshare cancellation but even fully bar licensed law firms where scamming timeshare owners, such as Castle Law group stealing millions of dollars. So now in an industry that literally recruits scam artist and liars, “timeshare salespeople
“ has lawyers scamming their clients. What is this world coming too?
Timeshare Cancellation Changed:
Well something had to change, and even though small changes may not be much it starts a wave of correction. A regulated firm that has multiple process and levels of protection is what a timeshare owner should look for. This means all aspects of the timeshare owner’s risk needs to be address and solutions need to develop to truly provide a service which charges $2000-$3500 for each paid off timeshares, and $2600-$6000 for each mortgaged contracts. There must be accountability, milestone tracking, client protection, and transparency.
Every timeshare owner most likely has their credit score check, and if they financed the timeshare is most likely reporting on their credit report. Also, there are two types of timeshare ownership, one being deeded and the other points only. During the sales process the potential timeshare owner may have been applied for financing to a third-party company like Comenity Bank or Equaint financial. These companies offer personal loans and even though they approve customers for high dollars amounts it ultimately is the client’s decision to use that money towards whatever they want.
Timeshare financing has become the primary issue for most exit companies, law firms, and the timeshare owners themselves. For example, if a timeshare owner buys a $25,000 timeshare and finances it most likely is split up. The down payment may have gone on a Barclays card which was opened at the resort with or without the timeshare owner’s permission. The remaining balance is split between a persona loan finance company and in-house direct lending from the resort. When the credit card and the third party have provided most or all the funding, the timeshare is considered paid off.
Paid off? How can that be if you are still paying the finance company? Well the finance company paid your timeshare off leaving only your maintenance agreement and now you owe the finance company the new interest rate and personal loan regulations and restrictions. Almost every timeshare cancellation firm and law firm will not cancel, remove, dispute, or negotiate the third-party account advising the client the account is not the timeshare and is a personal financing firm. They have no power when it comes to these finance companies unless the account is disputed immediately and or no payments have been made.
So that means a timeshare owner may pay thousands of dollars to an exit company to only have the maintenance agreement cancelled and be stuck with a loan or credit card for thousands of dollars. The answer is Yes! Well that stinks, right?
Timeshare Contracts Cancelled By Risk Management:
As a credit and risk management firm the most effective way to terminate a timeshare, handle finance accounts, credit cards, and deeds is verifying accuracy and accountability. We can verify accounts on credit reports, search the deed recordings, expedite credit card disputes, and file complaints with multiple consumer protection and financial regulated agencies. Having a board-certified credit manager, and certified risk manager, and title analyst bring a tri-fecta of investigation, assertive tactics, and can delivery real results to the timeshare owner who has become a victim of timeshare fraud or deceit. I never thought my skills in credit and risk management would have come to such use helping timeshare fraud victims. We have educated and assisted thousands of timeshare owners in relieving themselves of timeshares and have built endless credit recovery plans to ensure our clients do not fall victim later buy debt buyers and debt collectors. Most exit companies are not even aware of debt buyers and the deep debt market that is bought and sold everyday behind the scenes of some of the largest financial firms in the world. Your Comenity timeshare mortgage may be next in the hands of a debt portfolio recovery company.
How Timeshares Are Cancelled:
We have built the most advanced program in credit management, risk mitigation, and debt restructuring for our clients to ensure the results are what they want. We provide full disclosure and transparency. This sometimes comes with the advising they may still be responsible for up to 40% of the debt for any unsecured loan or charge card. No law firm or exit company would share this information due to the fact it would not rectify the charge of $3500-$6000 they are quoting the client which does not include credit management, asset protection, and debt restructuring.
This industry has been pushing timeshare owners around and finally over the past 3 years we have developed a program with full transparency and accountability. A regulated firm that does not hide any fee, potential risk, realistic outcome with times frames. The one year or less is not accurate. With the COVID virus and amazing timeshare contracts 10-18 months is the average with no money back guarantee.
Protecting our clients is the foremost goal, credit management and ensuring we work aggressively to maintain our client credit scores, and protect their assets through trusts, or transfers of ownership is step one. Negotiating with the financial firms and credit card companies and presenting a debt management plan has saved timeshare owners thousands of dollars and protects the client under FTC regulations. For any debt restructuring our credit attorneys not only negotiate with the creditors but also protect the clients against Fair Debt Collection Practices Act violations (FDCPA). This is debt collector harassing them or lying, screaming, disclosing the debts to third parties, and so on. Contacting the timeshare company and arranging a settlement offer or educating them on how our client consumer rights have been violated, and or their credit report have been tarnished illegally has evolved the service of timeshare cancellation to involving multiple departments, and industry specialists.
We have combined credit, risk, law, and advocacy to cancel our client’s timeshares and share it 24/7 on our client portal. This is transparency and realistic strategy conducted by certified professionals. We are not your grandfathers’ hand me down we are the innovators and protectors of the consumer who has nowhere to turn to.
Real Assessments and Free Consultations:
We offer the most comprehensive assessment to date. The assessment does not cost a potential client anything and will give our team and the client a true expectation, build an effective strategy, depict the current timeshare financial situation, and identify any risk with almost 100% accuracy. We present the client with all out reports, and assessments free of charge, an affordable quote, payment options, finance options, and a timeline.
“The most rewarding feeling I have felt professionally was congratulating a client on their choice for using our timeshare has been cancelled, the timeshare accounts have been deleted from their credit reports, their credit card company has issued a refund from the timeshare transaction disputed, or financial firm has agreed to a 20%-40% settlement. We provide a full credit profile improvement which most clients are surprised.” – Mark Anderson
Timeshare Debt Cancellation Copyright 2020