Debt questions from around the world, helping each other by giving and receiving advice on UK based debt.

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Bybobgibson1
#413103 Help !! advice needed - we are living in the uk

many years ago my wife and I purchased a timeshare in Florida whilst on holiday, all paid for with just the regular yearly maintenance payment.

A few years after the purchase we divorced and she took on the timeshare and maintenance payment. She stopped paying a few years ago, informed them that she could no longer afford the payments. Recently she has received an email demanding payment from an American debt collector to pay the maintenance amount owing plus interest.

1. she doesn't want the time share any more - and its difficult to sell on to anybody - she'd be willing to give it away - How can she get rid of this Timeshare

2. Are the American debt collectors able to chase her in the U.K for this debt owing in Florida for the Timeshare - They don't know her new address ! is there some sort of an agreement and are they able to sell it on to somebody in the u.k to do this ? :(

any help would be appreciated
User avatar
ByTalbotWoods
#413183 Hi and welcome

Timeshares are somewhat difficult to sort out as it will depend on judicial of the agreement.

Can you remember back to the agreement, does it state what the applicable law applies, such as if you live in England the agreement will say that English Law will apply.

And this is why it can get a wee bit confusing, not all timeshares are covered by that countries laws, some may say the country they timeshare is in, others say else where. For example, your timeshare may be in Florida, but the agreement may say England.

Tim
Bybobgibson1
#413513 Hi Tim

many thanks for getting back. I looked at the purchase contract and there is no mention of 'English Law' .

it mentions about the 'TimeShare Company' organized and existing under the laws of the 'State of Florida' but no mention of 'us' being under a differrent Law.

many thanks

bob
User avatar
ByTalbotWoods
#413643 Hi Bob

From your original post you implied that there is no outstanding mortgage on the property. If this is the case that the debt is classed as a 'Domestic' debt and they can hassle you but they cannot seek world wide remedy for it. However, be aware that under the agreement they will be able take this to court in the US.

You must also be aware that if you outright own your share of the mortgage, they can take this into court in the US under their foreclosure rules, to cease this asset to repay the owed debts, plus resale cost, plus loads and more.

Now, if there is outstanding mortgage, then they can and almost definitely will foreclose, and this is where it can get difficult as they can chase this in the UK, under the Hague Rules, but I have never heard of this. In Florida, if there is still a shortfall then they will sue you in absentia for the amount outstanding, and Florida WILL put a financial marker against your details on the US Aliens list ..... Which mains any visa applicable will be rejected. OK this is debt is classed as civil, but under the US Visa requirements, if you have a sue mark, they will block you!

Tim

Out of interest is this Timeshare with RCI as I have some addition
Bybobgibson1
#413803 Hi Tim

many thanks for getting back.

The Timeshare is through a company called 'Westgate Lakes LLC' and is
fully paid for, no outstanding mortgage. They are using a company called
'Pinnacle Recovery, Inc'. My ex has just recently received the following email from them

------------------------------------------------
SUBMISSION OF NEGATIVE CREDIT REPORT IMMINENT



We have contacted you previously regarding your delinquent account
obligation. To date, you have yet to resolve your obligation with
Westgate Resorts.



You are hereby notified that a negative credit report will be submitted
to TransUnion Credit Bureau. You must contact our office prior to
8/23/2013 by 10am PDT to make payment arrangements to avoid this
reporting. Any late payments, missed payments and other defaults on
your account will be reflected on your credit report.




We will continue to report a negative credit report to TransUnion until
you have resolved this delinquency or until we are given further
instructions by our client.

If you fail to adequately respond to our attempts to adjust this
delinquency, we will instruct our client to proceed with whatever
action they deem appropriate.
----------------------------------------------------------------

Thanks Again Tim

regds

bob
User avatar
ByTalbotWoods
#413843 Hi Bob

If you have accounts in the US, such as bank accounts, credit accounts, etc, then this will impact on THOSE finances only, and this will only impact on THOSE credit files. This is because a negative report can only report to the county that the debt is in.

Experain and Equifax (The Credit Reference Agencies) are world wide, but the can only report in country because of various international Data Protection Rules, judiciary rules, international conventions, etc.

Now the thing to be very aware of is that this is the second move towards to them looking at moving towards court in the US to obtain the money, and that can include them ceasing the property under their laws.

But please take the gentle hint, they can and WILL move towards getting paid by ceasing the property

There have been a few incidences where they have ATTEMPTED to issue proceedings in the UK courts (such as obtaining a CCJ) but once you point out the applicable judiciary, they stop, as it isn't a UK Debt they cannot take this into a UK Court!

Tim
Bybobgibson1
#413963 Hi Tim

No Bank Accounts/ Credit Accounts held at all in the USA.
and there are no issues in losing the Timeshare at all. Big mistake buying
it in the first place really.

As for visiting America, Definately no plans to go as far as i'm aware.

Tim, I'd like to thank you for helping and explaining what they can and
can't do and the consequences. I'm hoping for less sleepless nights now.

A friend recommended the 'debtquestions' web site and I will certainly do the same if anybody comes to me with a problem

Thank you again Tim

regds

bob
ByPseudomax
#472622 Hi

I'm hoping that I can continue this thread ...

I am in pretty much exactly the same position ... I purchased Timeshare with Westgate in Florida in 2005. I have paid my maintenance and taxes religiously over the years with less and less utility and the last set (over $1000) I was unable to use for any timeshare across europe at any resort!! I literally gave the exchange company free reign to find me anything over the school holidays (and did this 10 months ahead of time ... that is the limit that you are allowed to book in advance). The last time I did actually use this was by flying the family to Florida to stay in my 'home resort' which defeats the object of having timeshare! Anyhow ... I'm tired of moaning about this. I made every effort at the top of my voice to sit in their sales meeting and tell their advisor my 'issues' the last time I was there and make sure all the would be con artists at least for a day were made to answer a few more direct questions!

So ... my question is, based on all the advice given in the last few responses about what I can expect to happen in the US ... what implications will that have on me as a reasonably regular traveller to the US for work reasons? I have been told that I don't need to worry from a few sources in the UK ... but that doesn't help me if I need to visit the US ...

Help gratefully accepted!

Graham
Bysally1
#472623 Hi Graham,
I'm afraid we cannot advise on American law. As you have seen from previous posts, timeshare law especially in the USA is extremely complex. You are more vulnerable to action against you as you travel frequently to the USA and if you default on your payments this could impact on your visa. There is a good article about timeshares in the Daily Telegraph that may answer your queries: http://www.telegraph.co.uk/finance/pers ... ights.html
Sorry I can't be more helpful but this is a complex topic and I advise you to seek legal advice. Good Luck
ByPseudomax
#472721 Hi

As you see, I posted in March regarding this matter. I decided to not pay any of the fees going forward, as the alternative was to rack up large costs in US court fees (not really an option) ... or I suppose keep paying an organisation that clearly is a bunch of scam artists.

Today I have just received the 'notice of a lien' that will be placed on my property ... and the veiled threat of additional charges etc. However, I also received a 'warranty deed in lieu of foreclosure' that for their wonderful kindness they are offering me the ability to pay them $10 and have the property taken off my hands. They are planing on a 'nonjudicial foreclosure' if I don't do this.

Given that I am in the UK, I don't particularly care about my US credit rating. Based on what I have received, I assume that they have no intention of chasing the UK debt (which I certainly would defend). But I am just interested in knowing whether I can ignore all this paperwork and let them go through a 'nonjudicial foreclosure' without having any legal notice against my name? As previously mentioned, my only interest in all this is to still have the ability to travel to the US for work purposes (and potentially the odd holiday or two ... depending on the state of US politics in 2 days time!).

Thoughts are appreciated!
User avatar
ByJaneClack
#472722 I am sorry we are unable to offer any thoughts on this - Sally advised you to seek legal advice. We are not able to comment on law in the US and timeshare law itself is a nightmare for non specialists. If anyone one else has any experience they are welcome to comment but I would strongly advise you not to rely on anecdotal evidence.
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