I need an opinion.
Generally late fees are applicable on goods you have purchased or services you have used. My understanding is that the Maintenance fees fall in to a different category. Here's my situation:
I have a timeshare for which i keep paying the maintenance fees for 7 years ( I have never used them even once). Last year through an oversight i missed paying the fees before January 31, 2007. After about 3 months or so got a notice about applying late fees. I didn't pay it then. In October when i finally got around to pay it the late fees was over $350. I decided to pay only the original maintenance fees ($700) and leave the late fees as is.
When i got the Annual Fees this year they have added interest on last year late fees after I paid the amount. This year they wanted me to pay the whole amout including the latefee/interest. I was quite pissed off and refused to pay. Now i have a notice for $1461 (out of which only $750 is my Maintenance fees).
My question is - Timeshare companies are collecting the MF upfront for the year and gaining interest even when we don't use it. Forget this being unethical and unfair, is it legal?. MF refers to a service being distributed over the year and not at the beginning of the year. I understand my contractual obligation of having to pay it even if i don't use it. But can the timeshare companies leaglly put late fees and interest when the services technically has not been rendered.
I am sure i am not the only person in this dilemma and would appreciate input as to what can be done.
thanks.
Generally late fees are applicable on goods you have purchased or services you have used. My understanding is that the Maintenance fees fall in to a different category. Here's my situation:
I have a timeshare for which i keep paying the maintenance fees for 7 years ( I have never used them even once). Last year through an oversight i missed paying the fees before January 31, 2007. After about 3 months or so got a notice about applying late fees. I didn't pay it then. In October when i finally got around to pay it the late fees was over $350. I decided to pay only the original maintenance fees ($700) and leave the late fees as is.
When i got the Annual Fees this year they have added interest on last year late fees after I paid the amount. This year they wanted me to pay the whole amout including the latefee/interest. I was quite pissed off and refused to pay. Now i have a notice for $1461 (out of which only $750 is my Maintenance fees).
My question is - Timeshare companies are collecting the MF upfront for the year and gaining interest even when we don't use it. Forget this being unethical and unfair, is it legal?. MF refers to a service being distributed over the year and not at the beginning of the year. I understand my contractual obligation of having to pay it even if i don't use it. But can the timeshare companies leaglly put late fees and interest when the services technically has not been rendered.
I am sure i am not the only person in this dilemma and would appreciate input as to what can be done.
thanks.
