timeshare collection

[andersj071658]

I got stuck with a timeshare. Basically the sales pitch and contract stated resorts and units in resorts that did not exist but were planned for the future. The Resort Company (EPIC) went bankrupt. Sunterra bought the accounts and are now trying to collect huge mnt fees and balances on the EPIC accounts.
What happens if I don't pay? Will it just be a bad debt or will they try to collect? Will it go to court? Do I get to tell my side of the situation? Can I get out of this? Help

 

[Michael Wechsler]

You will need to explain more about the situation in order to discuss it. It sounds like the company selling the shares went bankrupt. You are a partial owner of something and I'm wondering why the maintenance is so high and whether there is a justification for it. Sunterra is exactly whom? Did they buy the shares that were unsold and owned by EPIC? It would appear that you may have a remedy in court if they are trying to unreasonably collect disproportionate maintenance fees -- did you read your agreement? What does it say? What are your rights?

You probably do not want to default and there is no question they will likely want to collect and take your share and resell. You should probably send a complaint letter to them and, in the event that the activity may be unlawful, copy the state attorney general. You want to make sure that you've made objections to the process and let them know that you believe that they are taking advantage of a situation and improperly overcharging you for maintenance for wrongful reasons.

I got stuck with a timeshare. Basically the sales pitch and contract stated resorts and units in resorts that did not exist but were planned for the future. The Resort Company (EPIC) went bankrupt. Sunterra bought the accounts and are now trying to collect huge mnt fees and balances on the EPIC accounts.
What happens if I don't pay? Will it just be a bad debt or will they try to collect? Will it go to court? Do I get to tell my side of the situation? Can I get out of this? Help

 

[dinnerbi]

Sunterra / Epic purchase problems

I have a slightly different situation with the same company:

History:

> Original purchase was from Epic Resorts. Property (Deed) was for 1 week at London Bridge Resort in Lake Havasu, AZ. We purchased the highest option (RED) which made the week available for the maximum amount of time during the year, and was for the largest room category in the plan. Multiple rooms and baths, sleeping accomodations for 8 to 10, I think.

> About 2001, we heard about an option to convert weeks to a point system. We converted our premium week to 15,500 points - still with Epic.

> Sometime in 2002, we got notice that Sunterra had purchased Epic, and our property/points were being managed by Sunterra and we had to pay various fees to become "Club Members" with Sunterra, and then were assesed addional fees to help cover the upgrade of Epic propeties that were neglected during bankruptcy proceedings.

> In 2003 we refinanced our main home in California, and used a part of the proceeds to pay off the original mortgage on our Sunterra property, which had been moved when we became "Club Members" from London Bridge Resorts to "Scottsdale Links Resorts" in Scottsdale, AZ. That meant that we owned the vaction property/points outright, and were then responsible only for annual maintenanace fees.

> In March 2006 we got a letter on what looks like official Sunterra letterhead stating that we owed $9,000+ and specified an account number. When we called about it, we were told that it was actually $14,000+ because of back maintenance and late fees, and that it is connected to our "Second property that we own at London Bridge Resorts". This is obviously incorrect, but they are insisting that we owe that money. The statement is dated 2006, but the "Next payment due" indicates a date in 2001 - really strange.

My questions are:

> What recourse do we have when a company has made a mistake like this with their books, and insist that we owe them money that we know that we do not owe?

> If we were to just tell them to forclose, as a way to resolve the mistake, would that go on our credit report - even though it is for a non-existent property?

> When we have talked by phone with Sunterra regarding our "real" property in Scottsdale, we have asked them about this, and they say that they do not see it in their database - and that according to their records we own just the one deed, and it has been paid in full. Could this be a scam? If so, how do we deal with it?

Thanks for you help.

You will need to explain more about the situation in order to discuss it. It sounds like the company selling the shares went bankrupt. You are a partial owner of something and I'm wondering why the maintenance is so high and whether there is a justification for it. Sunterra is exactly whom? Did they buy the shares that were unsold and owned by EPIC? It would appear that you may have a remedy in court if they are trying to unreasonably collect disproportionate maintenance fees -- did you read your agreement? What does it say? What are your rights?

You probably do not want to default and there is no question they will likely want to collect and take your share and resell. You should probably send a complaint letter to them and, in the event that the activity may be unlawful, copy the state attorney general. You want to make sure that you've made objections to the process and let them know that you believe that they are taking advantage of a situation and improperly overcharging you for maintenance for wrongful reasons.