The most common question we are asked here at Timeshare Compensation is “what happens if you stop paying timeshare maintenance fees?”
Unfortunately, the answer is never what anyone wants to hear. You are contracted to pay your maintenance fees and this is a legally binding contract between yourself and the management company.
Can I submit a claim if my maintenance is in arrears?
The simple answer is no. You are unable to submit a claim for mis-sold timeshare before you have relinquished the timeshare. You are unable to relinquish the timeshare if your maintenance fees are in arrears.
Why do some companies advise to stop paying timeshare maintenance fees?
Avoid any company that tells you to stop paying your maintenance fees. There is nothing in it for them to tell you to stop paying. They just know that it is what you want to hear.
Many scam claims and relinquishment companies are telling clients that once they have paid them for the relinquishment they should stop paying the maintenance fees. This is a way to justify their service fee and create urgency. This is often told to clients as it approaches January. In reality a relinquishment can take months before you receive your confirmation from the resort. If your maintenance bill arrives whilst you are still waiting for confirmation the bill will still need to be paid.
You are not out of your timeshare until you receive official confirmation from the timeshare resort. Not every timeshare resort will send out confirmations, however this can be confirmed by telephone, if you call your resort once you have been successfully relinquished.
For more information on the timeshare claims process click here https://timeshare-compensation.com/timeshare-claims-process/
I do not receive maintenance bills but I also do not have confirmation from the timeshare resort
Unfortunately, you may have fallen victim of a timeshare relinquishment scam. Many companies have charged large up front fees promising owners that they will no longer be tied into their unfair timeshare agreement. They request full paperwork and identification from the owners and use this information to contact the resort notifying them of a change of address. This is why you have not received a maintenance bill. Your debt will still exist and will continue to rise.
For more information regarding timeshare scams click here https://timeshare-compensation.com/category/timeshare-scams/
What happens if I stop paying my timeshare maintenance fees?
If you simply stop paying your maintenance fees you will not be able to use, sell, relinquish or claim. The timeshare resort will usually harass clients who are in arrears by telephone, email and post. They would usually not pass the debt onto a debt collecting agency until the customer owes around £5000.
In some instances the resorts will stop all communication with their customer after around 3 – 4 years allowing the debts to build up to more than the timeshare is worth. This ensures that the clients will not submit a claim as it would cost them more to repay the outstanding balance than they would be entitled to in compensation. Once this amount exceeds the owed compensation amount, the resorts will then proceed with a debt collection agency.
Debt collection agencies & County Court Judgements
The real problems start when the debt is accepted and taken on by a debt collection agency. The debt collection agencies add on high interest rates & late payment charges. If these debts are not paid in full or an agreed payment plan set up, it will be taken to court.
Once your case has been brought to the County Court, they will assess your case, looking over the evidence and decide who is liable to pay these debts. They will not be looking into the timeshare resort that sold you the timeshare or any third parties that advised you not to pay the fees. They will only look at legal documentation surrounding the case. They will look at the agreement made between yourself and the management company who maintain the timeshare resort.
If you have signed their legally binding contract agreeing to pay maintenance fees then you need to pay the maintenance fees. It does not matter why you have decided to walk away from your financial responsibility. If the reason for not paying is due to you feeling that you have been mis-sold by your timeshare resort, you would need to take them to court on a separate case. In most cases the management company is separate from the company who sold you your timeshare. Failing to pay your debt will result in a CCJ (County Court Judgement) being issued.
By the time it reaches this stage your debt will be well above what the management company originally was asking for. The only way to avoid paying after a CCJ has been issued would be to declare yourself bankrupt. If a dept collection agency has to repossess assets such as furniture, cars and property, additional charges will be added on to your debt.
It is important to remember that even at this stage, once you pay the money that you owe you will still own your timeshare. This does not relinquish your responsibilities for future maintenance fees. You still need to terminate your contract legally.
If you would like to speak to a specialist to discuss your options, please arrange a free telephone consultation.
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