Don’t Be Afraid Of Timeshare Companies Collection Threats
Lots of times I get calls from potential clients after they receive an intimidating collection letter from their timeshare company. Usually our clients stop making payments after they get fed up with the increasing maintence fee and extreme difficulty in booking a date. (You would think after paying thousands of dollars for the timeshare, booking a date would be a bit easier.)
Unfortunately, when the payments stop, the collection letters start pouring in. Legally speaking, most of the collection letters are correct in that you may be on the hook for damages for breaching your timeshare contract. (Remember, the 30 page contract you signed and initialed in a hurry in order to get your free prize?) Over the last couple of years, our law firm has started firing back at these collection efforts and terminating the timeshare contracts.
In every contract there is an implied covenant of good faith and fair dealing. This is a covenant of fairness and equity implied in all contracts for liability purposes, and this covenant is breached when there is “conscious and reckless disregard” to the rights of the contracting party. Jenkins v. Family Health Program, 214 Cal.App.3d 400 (1989). We believe the timeshare companies breach this covenant every time they modify the contract by increasing the maintence fees, overbook the timeshare, or force you to “bank” your points with an unknown company that charges you more user fees.
Don’t let these collection letters scare you into paying more money into this terrible investment. On numerous occasions we speak to the timeshare company’s legal department and to avoid costly litigation we will try to resolve your timeshare case. Call me today to discuss your legal options. The consultation is free and you will speak to me directly.