What Happens When You Avoid Paying Timeshare Fees?

If you are a consumer who is frustrated with your timeshare developer or membership club, you may have thought about how avoid paying timeshare fees.  You do not own the property, and it is not the same as having a house and a mortgage, right?   If you have a dispute with your timeshare provider, and have attempted to resolve it unsuccessfully, it makes sense to think about defaulting on your payments.  After all, the developer may have failed to live up to some, or all of your expectations at a timeshare holder.

As a consumer advocate team who specializes in resolving timeshare contracts, sometimes we encounter clients who are angry and ready to stop payment.  In other situations, clients have already stopped their regular scheduled maintenance and membership fee payments, and have found that the fine print in their contract is as binding as a legal mortgage.   And since the default rate is quite high for consumers who want to exit and cancel their timeshare arrangement, that fine print adds up to a lot of inconvenience and legal liability for timeshare owners.

Legal Action from the Timeshare Company

After an owner has stopped payment of fees outlined in the timeshare contract, there are a number of steps that a developer will take to resume payment.  The contract is legally binding, and the proceedings are similar to other financial collection methods.

  1. Letters and Notices

The timeshare company will start by sending delinquent payment notices to timeshare owners.  The first letter(s) will be in a tone of follow-up, to have you, the timeshare owner, reinstate your payment schedule as soon as possible.  By the third notice typically, the language and correspondence will change to pressure the timeshare owner to resume payment, and catch-up on missed payments.

  1. Interest and Late Payment Fees

Depending on the nature of your contract, the timeshare company may levy interest charges and late payment penalties, as with any other outstanding payment procedure.   Many timeshare owners are shocked by the ‘fine print’ of their contract, which can see payment and interest fees increase their obligation by 5% to 20% per month or more.  Few timeshare owners are aware of the late payment or default payment administration charges, as it is something most timeshare buyers do not consider at the time of purchase.

  1. Notice of Impending Legal Action

If issued correspondence fails to motivate the timeshare owner to catch-up on missed payments, a warning about impending legal action will often be issued by the timeshare company.  This is a legal, written correspondence that arrives by mail in most circumstances, that outlines next steps.  During this period of time, renting out your timeshare for income may not be possible, as the property fees are in arrears, and the developer may also suspend your use of the property until the dispute is resolved.

  1. Legal Action and Credit Bureau Report

When a timeshare company is unable to convince an owner to resume fee payment, the matter is referred and reported to the credit bureau as a payment in default.  Once the credit bureau has been notified, the impact on your credit report is identical to any other type of default payment, regardless of the cause or reason for the dispute.  At this time, your personal financial credit history is damaged, pending a resolution between you and your timeshare vendor.

After legal collection proceedings, your wage can be garnished for outstanding fees.  For timeshare owners who need relief from payments for financial reasons, this results in additional legal expenses and an additional financial strain, and inconvenience.


Before you consider the option of non-payment, we strongly urge consumers to call us at 1-800-587-EXIT for proven, legal counseling and advice regarding the best approach to canceling a timeshare contract.  We can help protect your credit rating, while offering you a proven path to financial freedom from your timeshare contract, and from the expense of owning a timeshare.

Don’t allow your negative timeshare experience damage the credit rating you and your family have worked so hard to build.  There is a better option, and American Consumer Credit has helped hundreds of families gain freedom from timeshare ownership.  We are the original consumer advocate in America, for consumers who need a financial solution to predatory timeshare fees and contracts.  Call us today.