Is this Legal? Fees not adding up

Ok so many many years ago I got suckered buying a timeshare Grand Solmar in Cabo Mexico. When i got the timeshare it was to get a discount for a fishing trip. i made a 1k deposit to start the timeshare and got a kit that included a free trip certificate as long as you cover maintenance fees which i paid. After i went a 2nd time i stopped paying and forgot about this, it went to collections and being younger and stupid i blocked any phones that they tried to reach me at. Well that was over 10 yrs ago and now that im trying to fix my credit this is the last negative on my account. Now for all this time i knew i had this and it always showed that i owed $4,478 so i decided to call to settle this and they came back with now i owe them 10k for the loan plus maintenance fees. Can they do this? How are they coming up with this number? I called to ask and they gave me numbers for each year of fees and every year it went up. On top of that i called 4 times this week asking to pay this off and gave them 2 phones numbers and they just didnt bother to call me back until i got 1 person that was nice enough to try and pay my loan but after i get this email.

Good afternoon,

Before I ran the payment I realized that this balance is for the Maintenance Fee’s and not for the loan. The loan is not in our office and we usually can’t cancel if it isn’t paid off… I have to speak with my manager again on Monday she just left the office. I will give you a call Monday morning with more information. I’m really sorry for the delay.


Please has anyone had this happen to them? I need advise on what to do? Thanks in advance
Marco

If you have not paid for 10 years, the loan delinquency should already have fallen off your credit report (only 7 years from original date of delinquency). What is on your credit report?

Credit report aside, you are typically liable for both the loan and the MF. It looks like MF have averaged less than $550/year (which seems low but depends on what you bought into), not to mention the potential accruing interest on the loan. Are you saying the 10k is for everything, or just for the MF? What is the actual loan balance? This is not clear from your post, and you need to get a clear accounting before proceeding with any kind of payment.


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"Can they do this?
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Unpaid loans continue to accrue interest, prolly at a penalty rate.
Unpaid MF's also continue to accrue penalties+interest.

What's on your CR? Is it the loan-holder's debt or the HOA's MF's?
You may be able to deal with one + ignore the other.

Also... A statute of limitations may apply to older amounts due.
I suggest you consult with a lawyer well versed in Mexican debts.
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uscav8r said:

If you have not paid for 10 years, the loan delinquency should already have fallen off your credit report (only 7 years from original date of delinquency). What is on your credit report?

Credit report aside, you are typically liable for both the loan and the MF. It looks like MF have averaged less than $550/year (which seems low but depends on what you bought into), not to mention the potential accruing interest on the loan. Are you saying the 10k is for everything, or just for the MF? What is the actual loan balance? This is not clear from your post, and you need to get a clear accounting before proceeding with any kind of payment.


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Click to expand...

To add to the first point, if you paid them 1 cent recently, the 7 year sol started anew. I would have challenged the debt with the reporting agency.

Hmmmm? Are you sure this was Grand Solmar? Construction on that resort started in 2010 and wasn't open until 2011. If you bought at Grand Solmar, I don't think it could have been ten years ago. Maybe six, if you bought pre-construction.

You fell for the typical timeshare sales pitch while on vacation. You signed the sales contract to get your "discounted" fishing trip (realize it wasn't such a great discount now though, right? :ignore, "free" trip certificate (if you had to pay MF's - it wasn't free), enjoyed a few vacations in your new timeshare, and then quit paying on your loan and MF contracts. Blocking their phonecalls doesn't make your debt go away. I guess they came up with the number because that's what you owe them. In your first contact with Grand Solmar to clean up your credit, did you tell them you have a loan? They may have just been looking at past due MF's and penalties. When you wanted to close the account, they would have to contact a different department, catching that you had a loan.

You may be able to clear the account without having to pay back all that you owe, because Grand Solmar units are a pretty easy sell for the resort. It's too bad you let it go this long. They were even offering to buy units back at one time.