I was asked recently if any of the companies advertising relief from timeshares are legitimate. I had to answer “I don’t know if ANY are legitimate, but I don’t know of any legitimate ones. What can you do if you are in a timeshare that you can’t afford? Can a lawyer help?
Can a lawyer help? The honest answer is sometimes. For almost 17 years I worked for UAW Legal Services Plans, and when I was there I got to help a lot of people with timeshare problems, and the best thing is that I didn’t have to charge them a dime, because the UAW Legal Services Plan was an employee benefit. I went back into private practice in 2014, and since then I haven’t gotten a lot of calls about timeshares, but there are signs things are picking up. As a private lawyer though, I have to treat timeshare cases like any other case, and I have to get paid. I like to get results for my clients though. Sometimes you can do that with a timeshare and sometimes you can’t.
In the paragraphs below, I discuss my methodology of analyzing and remedying timeshare problems. As you read this, contrast this methodology vs the promises of a timeshare relief company. An ethical lawyer doesn’t promise results. An ethical lawyer lawyer treats every case differently. An ethical lawyer puts any prepaid fee in the trust account until he or she performs the work. An ethical lawyer informs the client what he/she did to earn the fee. EASIEST CASES – DEEDED INTEREST – CONTRACT UP TO DATE
When analyzing timeshare cases the first thing I do is look to see if the contract is in default or if it is up-to-date. If it is up-to-date, these are the cases most likely to get relief on an affordable basis. If it is a deeded interest and the contract is up to date, and if the timeshare company is one of the more reputable ones (everything is relative),
I suggest the consumer send a letter to the timeshare company claiming economic hardship and offering to sign back over the timeshare to the company in exchange for being let out of the contract going forward. Often the timeshare company will honor this request, and will send you a quitclaim deed to get you out of your timeshare. You may not even need assistance of an attorney to help you, and it you do, it may be just to look over the paperwork. ( If you have a problem in doing this because you think you should get cash money for your timeshare, then good luck to you, your odds of being disappointed are pretty close to 100%. Your odds of being scammed by a time share selling company approach 100%.)
HARDER CASE – CONTRACT UP TO DATE NON-DEEDED INTEREST OR POINTS MODEL
A hardship letter might work in this case as well, but there is more incentive to back it up with an attorney letter just to let the timeshare company know that it might be more expensive for them to fight you than to just give in. In these cases, I typically do an analysis of the sale under the Timeshare Act and point out any potential illegalities in the sale.
HARDEST CASES – CONTRACT NOT UP TO DATE – DEEDED OR NON-DEEDED INTEREST
If you are behind on your contract, annual fees, or both, there’s no simple answer. Each one of these cases are different. How I approach the case depends upon how the potential client comes to me. If he or she comes to me because he/she is getting a dunning letter from a collection agency, I first look at whether the collection agency might have violated the Fair Debt Collection Practices Act. Why? Because if I can spot a Fair Debt Collection Practices Act violation, I might be able to represent the consumer at no out-of-pocket fee.
If the person comes to me because he or she is being dunned for overdue timeshare bills by the company and just wants out, I have to interview the consumer in great detail and look at the documents to see if I can spot a violation of the Indiana Timeshare and Camping Club Act (most states have something similar), Indiana Code 32-32-3-1 et seq. This is a time-consuming process and typically costs at least $600. If I spot a potential violation, I typically start a letter-writing process, and my fee depends upon the amount of time needed to complete the objective. Note: if you are paying monthly on a contract, even to a finance company, if you have a valid claim against the seller, you can raise the claim as a defense to paying the finance company under the FTC Holder Rule. I don’t suggest that you stop paying the finance company unless it is under the active advice and monitoring of an attorney.
WHAT TO DO IF YOU ARE BEING SUED BY A TIMESHARE COMPANY OR COLLECTOR FOR A TIMESHARE COMPANY
Don’t give up! If you are being sued over a timeshare debt, it is crucial that you have the lawsuit documents reviewed by an experienced consumer lawyer. You can find one through the
National Association of Consumer Advocates’ “Find an Attorney” web page. Please
don’t call me if you don’t reside in Indiana or if the timeshare is not in Indiana. If you are in Indiana though, I welcome your call.
Lawsuits by timeshare companies can often be fought off and resolved for less than what they are claiming from you, including attorney fees. In addition, an attorney can often negotiate payment plans that are less than could be garnished from you if they get a judgment against you. An attorney can evaluate whether bankruptcy is an option for you. Occasionally, attorneys can get back money you already paid or even extra damages for illegal conduct.
WHAT IF I HAVE ALREADY BEEN SCAMMED BY A TIMESHARE RELIEF COMPANY?
If you have been scammed by a timeshare selling or timeshare relief company, contact a consumer attorney through the link above. If the attorney can spot fraud or other illegal activity, the attorney might take the case on a contingency fee basis, meaning, he/she might take the case based on a fee to be recovered from the other side. You should also file a complaint with the attorney general’s office in your state and in the state where the scammer is operated.