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What happens when your Timeshare maintenance bills go unpaid?

What happens when your Timeshare maintenance bills go unpaid?

This question comes about a lot as maintenance fees can be difficult to keep up with, especially with them on the rise each year. When you leave your fees unpaid no doubt there will be consequences, the period of time your bill is left unpaid for and the terms in your contract will define the level of ramification.

About Maintenance Fees

In the contract provided to you when originally purchasing your timeshare, it would have stated how much you will need to pay in maintenance fees and when. Depending on your terms this could be yearly or monthly.

The fees may have a steep inflation rate; therefore to begin with you may have thought that you were getting a great deal, to discover some years later that finding the money to pay your maintenance fees can be more than just a small struggle.

Maintenance fees on your timeshare generally cover regular upkeep and any property repairs. Such as gardening, pool maintenance, servicing gym equipment, golf course care, management services and property insurance.

Timeshare use with unpaid Maintenance Fees

If there are outstanding maintenance fees to be paid on your Timeshare then you will be denied access from the resort to use it when you try to check in. This also means you cannot exchange your weeks and you are not allowed to rent it out either.

Interest and Late Fees

Failure to make complete and on time payments may lead to raking up more bills. The group or resort may charge you with late fees or you could acquire interest rates. It will state in your contract what will specifically be charged to you in the case of a late or missed payment.

Collection Agencies

To begin with, missed payments mean you will receive letters followed by phone calls from your timeshare group or resort.

After consistent failure to pay your maintenance fees, you may eventually stop receiving demands for payments. Do not take this as an all clear. Many timeshare companies do this because they can’t chase you with debt collectors from Spain if you live in the UK for example. So instead they wait for the debt to build up and up before selling your debt to a British debt collection agency, which will then have the responsibility of making you pay. Even if they turn up at your door and you settle the outstanding balance in full; you may still receive a negative credit report which will remain for several years, making even simple mobile phone contracts harder to obtain in the coming years.

Taking action in Court - Can I be sued for not paying my timeshare?

If you fail to pay the debt collection agency you may be taken to Court for a County Court Judgement. You will be deemed to pay the original amount plus additional costs. Continued failure to pay or to satisfy the balance could lead to an application to the high court for a bankruptcy order and the responsibility would then be passed over to bailiffs who have the authority to visit your home in order to collect the money any way they can. Debts have the tendency to follow you and without paying off the sum it will keep rising until eventually they find a way to settle the balance. This is by no means a normal occurrence but it can happen.

How can I legally stop paying my maintenance fees?

In order to stop your maintenance fees and dump the burden once and for all, you will need to break free from your timeshare. While you own a timeshare, there really is no way to keep your bank account safe, a concern that could one day be passed down to your family. At the Timeshare Advice Centre, our team of advisors can be reached from Monday to Friday at 01793 629065. The team are on hand to give you advice regarding your timeshare. We can help you legally exit from your contract; you may even be entitled to a claim. We work closely with international law firms that are always battling in the courts and behind the scenes to get the best results for our clients.

Can I exit my Timeshare with outstanding maintenance fees?

Generally, it is advised to have all of your maintenance fees paid up to date when choosing to exit your timeshare. However, it does vary on the resort and the contract you have been provided as to whether you can exit with outstanding fees or not. There is no black and white answer to this, it is circumstantial. When you decide to work with our team, we will negotiate terms with your timeshare group or resort and come up with the ideal solution for you personally. If you have any queries regarding this, please do not hesitate to get in touch with our team by submitting a claim online or by calling us on 01793 629065.