Timeshare Exit Credit Repair Myths & Empty Promises
The timeshare exit industry has seen a surge in companies promising to free owners from timeshare contracts. Among the most enticing claims these companies make is that they can protect or repair your credit during the exit process. While these timeshare exit credit repair promises may sound reassuring, they are often empty and misleading.
Let’s explore the reality of these credit repair claims…
The Allure of Timeshare Exit Credit Repair Promises
Many timeshare owners have concerns about how the timeshare exit process might impact their credit.
In response, some timeshare exit companies intentionally make marketing claims like:
- “We will ensure your credit is not affected.”
- “If your credit is harmed, we’ll fix it for you.”
- “100% credit protection guarantee”
- “Free timeshare exit credit repair”
At first glance, these timeshare exit credit repair assurances seem to provide peace of mind. However, they are often no more than marketing tactics designed to lure consumers into signing contracts with companies that lack the legal authority and/or ability to fulfill these promises.
Federal Judge’s Findings on Misleading Practices
A recent lawsuit has exposed critical issues prevalent across the timeshare exit industry including the promise of timeshare exit credit repair or protection. Federal Judge Aleta A. Trauger’s Order for Partial Summary Judgment and accompanying Memorandum regarding a case that involved a large timeshare exit company – outlines key facts that dispute marketing claims made by the defendant timeshare exit company.
These findings apply to many timeshare exit companies that operate under similar models and may face the same legal issues identified by the court. Many timeshare exit companies market and entice consumers with promises of credit protection or repair as part of their services. However, these promises are often empty and may violate consumer protection laws. The judge’s findings in this case revealed several troubling practices related to credit repair and protection.
1. False Timeshare Exit Credit Repair Promises to Customers
The timeshare exit company’s representatives claimed timeshare exit credit repair was a key part of their service offering.
The Court Found: “[The timeshare exit company’s sales representatives] promised credit repair services when advising customers…and they pitched credit repair as an important part of [the exit company’s] service, all included with the fee.”
2. There Is No Control Over Accurate Timeshare Exit Credit Reporting
The court determined that the timeshare exit company could not control how timeshare resorts reported non-payment to credit bureaus, nor could it remove accurate negative information once reported.
The Court Stated: “[The exit company] induced customers into hiring it by representing that their credit would not be harmed and that, if it was harmed, [the exit company] [or a third party] could fix it—despite [the exit company’s] actual knowledge that it could not do anything to prevent [the resort] from making truthful and accurate credit reports relating to those customers’ failure to make payments on binding and legitimate loans; nor could it do anything to remove truthful and accurate reports once they were made.”
This finding highlights that many timeshare exit companies lack the authority or ability to influence credit reporting processes, rendering their promises of timeshare exit credit repair misleading and unattainable.
3. Violation of Consumer Protection Laws
By including credit repair as part of its service package, the company violated state consumer protection laws.
The Court Concluded: “…[The exit company’s] false offering of credit repair services as part of the package of services it provided to its customers, along with its purported cancellation of the customers’ timeshares, violated [that state’s Consumer Protection Act].”
This ruling highlights the legal consequences of such deceptive practices and the importance of transparency in the timeshare exit industry.
The Serious Implications of Stopping Timeshare Payments
Stopping payments on a legally binding agreement like your timeshare contract is a serious decision with potentially far-reaching consequences. Making the promises of timeshare exit credit repair more vague:
- Negative Credit Reports:
Timeshare companies can legally report missed payments to credit bureaus. These reports, if accurate, cannot be removed or contested successfully by any credit repair service. - Potential Lawsuits:
Failure to pay may expose you to legal action by the timeshare company, leading to additional financial strain.
Key Advice: Stopping timeshare payments should only be done after consulting with an experienced timeshare exit attorney who represents you personally and can provide legal guidance tailored to your specific situation.
What Happens If You Stop Paying On Your Timeshare?
Watch This Video
What This Means for Timeshare Owners
The findings reveal a troubling reality: many timeshare exit companies make promises they cannot legally or feasibly keep, such as timeshare exit credit repair. Here’s what you need to know:
- Credit Reporting: Timeshare resorts have the legal right to report non-payment to credit bureaus. Accurate and truthful reports cannot be removed by any credit repair service.
- Consumer Protection: Misleading claims about credit repair not only fail to deliver but may also violate consumer protection laws.
- Personal Legal Representation: Working with an experienced team of experts and having an attorney that represents you personally throughout the exit process, helps to ensure your best interests are protected.
Protection From False Timeshare Exit Credit Repair Promises
If you’re considering exiting your timeshare, take these steps to safeguard your financial and legal interests:
- Work with a Trusted Company That Provides Personal Legal Representation:
Prioritize transparency and legal expertise. Seek the support of a timeshare exit company that includes individual legal representation for each of its clients. This ensures you have a personal attorney who will work in your best interests because they have a legal duty to do so. - Avoid Misleading Claims:
Be cautious of companies that guarantee they can prevent or provide timeshare exit credit repair. These claims are often deceptive and unsupported. - Verify the Company’s Track Record:
Research the company thoroughly and look for verified reviews or legal cases that demonstrate their credibility—or lack thereof.
The Bottom Line About Timeshare Exit Credit Repair
The promise of timeshare exit credit repair in the timeshare exit industry is, more often than not, a misleading tactic. A federal judge’s finding has exposed the deceptive nature of these claims, highlighting the importance of working with experienced professionals who also provide personal individual legal representation for their clients throughout the exit process.
An attorney that is retained to legally represent you has a legal duty to explain the laws (Fair Credit Reporting Act) surrounding credit reporting and how they can help you. With the right guidance, you can navigate the exit process confidently—without falling victim to empty promises of timeshare exit credit repair.
You can start by downloading your FREE copy of The Consumer’s Guide to Timeshare Exit.