[ 2014 ] cancelling a Vacation Club [Dominican Republic at the Paradisus palma Real]

dusted 7D · Nov 19, 2014

I'm a newbie here folks so be gentle. If I am posting in the wrong spot I apologize and please move the thread to the appropriate location.

So I like many others fell into the trap of a vacation club in the Dominican Republic at the Paradisus palma Real. (a gorgeous resort but that has no bearing on my question)

I signed an agreement in August of 2007 and have 10 years of payments to this place. I have roughly $13,000 remaining and the maintenance fees have increased from $700 a year to now over $1,000 a year. I have gone down several roads with the scammers out there asking for upfront money (though I have never given any). today I had a company tell me that they employ lawyers to rid me of this contract and for $5,000 up front they would take care of things. (JR Vacation Consultants) I have 33 more payments left but I want out of this mess and have contemplated just not paying anymore. I have done some reading up on it effecting my credit score (which worries me because I have kids starting college in 3 years). Is it worth calling the company and telling them I can;t pay anymore. You have already gotten a ton of money out of me and I am willing to walk away from this and call it even.

So now I am lost on what to do. any assistance or additional information would be helpful. I am at my wits end.

DeniseM · Nov 19, 2014

I signed an agreement in August of 2017

I am guessing that you mean 2007?

I don't know of any safe and legal way out, except to default, and it's really hard to say if they will go after you or not. In the US, they probably would, but hard to say with a foreign entity.

dusted 7D · Nov 19, 2014

I did mean 2007 and just changed it in the lost. Thanks. The company is foreign based but have offices in the US.

DeniseM · Nov 19, 2014

So if they foreclose on you, they may turn you over to collections to see if they can put the squeeze on you, and get you to pay up. Or they may not. Eventually, they will take it back, and it will be over with, but you may take a credit hit, and it may take a few years to get through it. It's really hard to say with a foreign company.

dusted 7D · Nov 19, 2014

Company is Sol Melia. Resort was in the Dominican Republic but they have offices in the US in Florida I believe. Do you typically just stop paying or do you alert them??? I;m new to not paying my bills.

DeniseM · Nov 19, 2014

You could send them a firm letter, stating that you won't pay another cent, and offering to deed it back to them in lieu of foreclosure. That's cheaper for them, but you will have to be ready to play hard ball….

Do you need good credit to buy a house or finance anything else in the next few years? That's a consideration.

theo · Nov 19, 2014

Still no magic beans or pixie dust around...

dusted 7D said:
The company is foreign based but have offices in the US.

First and foremost, please forget about paying some obscure (...ahem) "legal" entity $5k for "exit" services. As has been repeatedly discussed in these forums, time and time again, lawyers are attorneys ---- but they not magicians. If you have a valid contract, there is no magic pixie dust available to even the very best of lawyers that is somehow going to make a solid, valid contract obligation just somehow magically disappear.

"Offices in the U.S." may indicate both the ability (and a willingness) to initiate collection efforts in the U.S. as well. Defaulting on the loan balance is certainly an option, but there will likely be credit consequences if you should choose that path. The impact of a credit report "ding" is a factor only you can assess and evaluate for yourself.
If you have mortgage application plans for a home in the near future, for example, that "hit" on your credit report may have untimely and unwelcome consequences.

Good luck, whichever way you opt to go.

dusted 7D · Nov 19, 2014

Already have my house. Maybe lease a car in a couple of years and my daughter starts college in 3 years. Not sure if that would effect student loans.

Rent_Share · Nov 19, 2014

Dig through your paper work, find the original contract, for it to be enforceable in the US, there has to be a venue clause, stating a that in the event of a legal action the laws of "_______" apply. If it's states DR, then take the attitude "SO SUE ME"

If you have been sending your loan payments and maintenance fees to a US address chances are your contract calls for a venue consistent with that address and you need to deal with it as if it was located in the US.

Passepartout · Nov 19, 2014

Is there REALLY a deed they can foreclose on? If it's just a vacation club, there isn't anything to foreclose, and the worst they can do is turn you over to collections. There is some room for conjecture over how much damage that can do to your credit. One school (that I subscribe to) would be that defaulting on a worthless $13,000 debt is preferable to paying it off and having nothing.

I agree with others that opening communication with Sol Melia and telling them they aren't getting another red cent from you and they are welcome to what you have already paid. Period. Expect them to play hard ball- after all, they'd much rather have the income stream from you than their worthless vacation club back.

Best wishes.

Jim

Rent_Share · Nov 19, 2014

The OP isn't judgment proof, (unless it's an international debt) since he has been making payments, bank attachments aren't that difficult, through a local agency, it would be easy to obtain a sister state judgment and schedule a debtors exam which could lead to a wage garnishment, Not to mention an abstract lien recording in the county of residence, which would need to be paid off to transfer or refinance any real estate owned by the debtor.

The situation is much worse for someone who no longer wants to pay versus someone who can't pay. The only hope is a negotiated settlement in lieu of the creditor having to spend the funds to collect, all of the remedies listed require the creditor to write checks for documents and filing fees.

dusted 7D · Nov 19, 2014

All addresses reference the Dominican Republic except the preferred payment address of 9500 So. Dadeland Boulevard Suite 300 Miami Florida 33156 which is resorts advantage

Rent_Share · Nov 19, 2014

Where did you sign the contract ?

They are a properly licensed Florida Corporation

Detail by Entity Name

Florida Profit Corporation RESORTS ADVANTAGE LTD., INC.
Filing Information Document NumberS03833FEI/EIN Number650223419Date Filed10/04/1990
State FL
Status ACTIVE
Last Event
REINSTATEMENT
Event Date Filed12/05/1991
Event Effective Date NONE

Principal Address 9500 S. DADELAND BLVD 300
MIAMI, FL 33156

Changed: 01/05/2006

Mailing Address 9500 S. DADELAND BLVD 300
MIAMI, FL 33156

Changed: 01/13/2009

dusted 7D · Nov 19, 2014

Signed it in the Dominican Republic

Rent_Share · Nov 19, 2014

It all depends on the venue clause, was the agreement in English or Spanish ? In Mexico the Spanish version prevails in the event of a discrepancy in the translation

dusted 7D · Nov 19, 2014

2 columns on the agreement. One column in Spanish and one column in English. It does say in translation issues Spanish side prevails.

Rent_Share · Nov 19, 2014

First of all who issued the contract, it should be in the first paragraph, unless it simply says "seller" then it might be on the signature page.

If it says RESORTS ADVANTAGE LTD., INC, a Florida Corporation, you cannot walk away.

There has to be a Venue Clause, always written to be most favorable to the person / entity issuing the document, it may be open ended providing multiple potential venues, all at the discretion of the seller.

Based on their corporate registration, and website, http://www.resorts-advantage.com/Common_Pages/contact.aspx I would assume your debt is owed to a US Corporation, however the clause stating the Spanish version prevailing would not, hold up if the venue is listed in Dade County

TheTimeTraveler · Nov 19, 2014

dusted 7D said:
I'm a newbie here folks so be gentle. If I am posting in the wrong spot I apologize and please move the thread to the appropriate location.

So I like many others fell into the trap of a vacation club in the Dominican Republic at the Paradisus palma Real. (a gorgeous resort but that has no bearing on my question)

I signed an agreement in August of 2007 and have 10 years of payments to this place. I have roughly $13,000 remaining and the maintenance fees have increased from $700 a year to now over $1,000 a year. I have gone down several roads with the scammers out there asking for upfront money (though I have never given any). today I had a company tell me that they employ lawyers to rid me of this contract and for $5,000 up front they would take care of things. (JR Vacation Consultants) I have 33 more payments left but I want out of this mess and have contemplated just not paying anymore. I have done some reading up on it effecting my credit score (which worries me because I have kids starting college in 3 years). Is it worth calling the company and telling them I can;t pay anymore. You have already gotten a ton of money out of me and I am willing to walk away from this and call it even.

So now I am lost on what to do. any assistance or additional information would be helpful. I am at my wits end.

You're getting all sorts of answers, however it may be worthwhile to consult a knowledgeable attorney who deals in these matters.

Keep all of us posted.

.

dusted 7D · Nov 19, 2014

First paragraph or so of the document.

This agreement is executed between sol Meila VC Dominica SA (the service provider) herein represented by and authorized representative authorized under the powers grantd baby the Vice President of the board of directors of the company, commercial sol Meila VC Dominicana SA and (me)

The service provider is a variable capital stock corporation organized and existing under the laws of the Dominican republic as evidence by public deed no 44356/E act No. 7 dated the 21st day of August 1997, executed by Dr Angel Ramos Bruisiloff, notary public for santo Domingo Dominican republic.

Inversiones Areito SA (the hotel owner) is a corporation organized and existing under the laws of the Dominican republic as recorded by public deed No 2 dated the 16th of July 1999 executed by Mr Praxedes J Castillo B. Notary public for santo Domingo Dominican Republic, national taxpayers registry RNC.

Rent_Share · Nov 19, 2014

If there is nothing in there (seek advice if counsel), that ties you to a US Corporation, if you default, there is almost no chance that they will try to get a judgment from the DR domesticated for enforcement in the US

Keep looking for a "Venue Clause"

MuranoJo · Nov 19, 2014

Great advice from David. And, at least to me, the first time I've seen this issue interpreted to us via the contracts.

dusted 7D · Nov 19, 2014

I didn't see anything that mentioned the U.S. other than a preferred payment address they refer to what would normally be the "seller" as the "service provider". Is that normal? I see no verbiage in there that mentions the venue clause

And thanks everyone for your help on this.

anapur · Oct 21, 2015

I would b very interested in how you did move forward and what happened next?

theo · Oct 21, 2015

anapur said:
I would b very interested in how you did move forward and what happened next?

Fwiw, "dusted 7D" registered as a TUG guest almost a year ago now, made nine posts on that one day (11/19/2014) and never posted on TUG again since then.

I think the odds of him / her seeing your inquiry nearly a year later are probably slim --- you might try a direct PM or email contact instead. Just a suggestion. :shrug:

gioamorim · Jan 1, 2016

I see you were in the same situation as we are now. How did it go for you? Have you stopped paying? Has it affected your credit?

[ 2014 ] cancelling a Vacation Club [Dominican Republic at the Paradisus palma Real]

dusted 7D

DeniseM

dusted 7D

DeniseM

dusted 7D

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theo

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dusted 7D

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