Global Exchange Vacation Club -- Termination advice.

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By M D.

Global Exchange Vacation Club -- Termination advice.

i had a complete lapse of judgement when i signed a contract with global exchange vacation club in napa, ca. i signed in october 2007, and i want out! there is no customer service!

since it is passed my 7 days grace period to cancel.. i wanted to know if there was any way that i can get out of this contract? what can i do? whom can i contact? has anyone tried to cancel their contract AFTER their grace period was up? please, please help!

i have my maintenance dues coming up, and i'm wondering what will happen if i don't pay them?

i would greatly appreciate any advice! if you've been successful at cancelling with global exchange vacation club, please let me know what you did.

Avatar for M D. M D.

11 years ago
Sep 12, 2008

By KC

A contract is a contract...

md111 states /asks in relevant part: >> since it is passed my 7 days grace period to cancel.. i wanted to know if there was any way that i can get out of this contract?<<

In short, no. Your contract is now nearly a year old, according to the dates provided. If the contract terms were lawful and you voluntarily entered into that agreement, then it is now your legal obligation. Unless the other party is willing to voluntarily release you from the contract (you can certainly ask them, but it's highly unlikely that they would agree to do so), it's now your personal legal responsibility.

Re: >> what can i do? whom can i contact? has anyone tried to cancel their contract AFTER their grace period was up? please, please help! <<

There is no way out of a voluntarily executed, legally valid contract. That's why they call it a "contract". There is really no one to contact who will tell you otherwise, if they are being truthful with you. The cooling off (rescission) period provided by law is finite in time and, once passed, you become party to a valid contractual agreement and its associated legal obligations. If you want "out" of your situation, then just sell off the membership (most likely at a significant financial loss) and move on, with a hard lesson learned.

However, you didn't actually mention whether your purchase was initially financed or not. If it was financed, you'll need to satisfy that loan before anyone will ever want to purchase from you at ANY price. No one on the planet wants to buy into someone elses' existing debt.

Re: >> I have my maintenance dues coming up, and i'm wondering what will happen if i don't pay them? <<

Your valid debt will accrue interest (and late charges) and what you owe now will just become a larger figure over time, in much the same way as an unpaid credit card balance just grows bigger over time. The account may ultimately get turned over to a collection agency. Foreclosure is always a last choice option for a facility, as it's both expensive and time consuming to initiate. Then again, since what you have is evidently a vacation club "RTU membership" of some sort (i.e., not an actual deeded ownership) "foreclosure" may not really be the appropriate legal term, since you don't actually own anything to begin with in such a vacation club --- you merely have access (i.e., a "right to use") by virtue of your "membership".

Be proactive, even if you have to sell at a loss to get out. Don't take the "ostrich" approach of just ignoring the matter in hopes that it will simply go away or somehow disappear on its own --- it won't. Good luck.

Last edit by ken1193 on Sep 13, 2008 02:01 PM.

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11 years ago
Sep 12, 2008

By M D.

Global Exchange Vacation Club -- Termination advice.

thank you, ken1193, for your advice. i read your replies on another forum, and i appreciate your honest and thorough response.

unfortunately, it's not the response i would have liked to read. i was hoping for some miraculous loop hole.

the purchase is financed, so i have a quite some debt to pay off before i can sell off the membership -- although, i do not know who would want to buy it or where and how to sell it.

the biggest concern i have is what happens if i cannot pay off the debt. it has been hard times. when i signed the contract, the monthly payments were no problem. the current situation isn't so bright.

i assume that "foreclosure" will be a big hit to my credit score.

anyhow, thank you for your legal advice. i truly appreciate you even taking time to respond. and thanks for the good luck wishes... i'll need it.

Avatar for M D. M D.

11 years ago
Sep 15, 2008

By R P.

md111 wrote:
.....the biggest concern i have is what happens if i cannot pay off the debt. it has been hard times. when i signed the contract, the monthly payments were no problem. the current situation isn't so bright.

i assume that "foreclosure" will be a big hit to my credit score.

I'm sorry to say that if you don't obey the terms of your signed contract then yes it will affect your credit score.

Many people think that buying into a vacation club or a timeshare is merely a frivilous purchase that doesn't have the same loan restrictions as buying a car, boat, house etc., but when you sign a contract to buy anything your credit score can be affected for non-payment if you choose to quit making payments.

Avatar for R P. R P.

11 years ago
Sep 16, 2008

By Carvan A.

md111,

You say you financed the purchase of a membership in Global Exchange Vacation Club and now due to financial difficulties you are unable to pay either the purchase price or the annual dues and are concerned about the impact upon your credit.

You do not own a deeded interest in a timeshare and you do not face a foreclosure on your credit report. That is a good thing. What you own is a membership in a vacation club that is analogous (comparable) to owning a membership in a country club. The owner of a membership in a country club does not own a deeded interest in the golf course but only the right to use the golf course subject to the terms of the membership contract. A timeshare developer can sell only a finite number of weeks (like 52 at most per unit) whereas a vacation club can sell an infinite number of memberships which often is in excess of their capacity. You own a membership in a vacation club with very poor customer service and a long string of unhappy owners. See the following link for a list of complaints:

http://www.tugbbs.com/forums/showthread.php?t=53760

You have discovered that you cannot sell or give away your membership and others on this thread tell you that your failure to pay will ruin your credit. That is not necessarily true. You should first read the Fair Credit Reporting Act (FCRA), 15 U.S.C. sec. 1681. Google it. This is a federal consumer protection statute that regulates credit reporting agencies. The act is voluminous but I will highlight some portions that may provide helpful information to you.

1. The creditor must furnish complete and accurate information to the credit reporting agencies. That is, they must report both the good and the bad. They must report the complete payment history and not just the delinquencies. This means GEVC must have reported all your past payments from the day of your purchase in order to now report your delinquency. Remember that any company placing a mark on your credit report must comply with a phalanx of consumer protection regulations all of which are designed to protect you. There are penalties imposed upon the creditor for failure to comply with these regulations and the Federal Trade Commission is responsible for enforcement. It is possible that GEVC did not bother to report your payment history and now cannot report the delinquency. I own and have owned numerous timeshares - never a vacation club membership - and I have never had a resort report my payment history . I have always paid my maintenance fees but my favorable payment record has never been reported to a credit reporting agency. I doubt that GEVC has been reporting your payment history. They can't start now without being in violation of the FCRA.

I suggest you pull credit reports from Equifax, Experian, and TransUnion and determine whether or not the national credit reporting agencies have a record of your history with GEVC.

2. The FCRA requires a creditor to inform the consumer, you, at least 30 days prior to posting any negative information on your credit report. It is a good thing for you if GEVC has not informed you of a pending negative report. That means they probably have not been reporting your payment history.

3. If they have been reporting and there is a negative mark on your credit report you should be aware that it can remain there for only seven years from the date of the first delinquency per the FCRA. Once you stop paying, you should not enter into any payment arrangements or even make intermittent payments because that could start the seven year clock to running again.

4. If you have a strong credit with a score of at least 700 or more the one negative mark should not adversely impact your ability to obtain future credit. I have seen folks with a recent bankrupcty on their credit get credit cards so it is not the end of the world to have one bad mark on your credit.

5. Once you default on your purchase money loan with GEVC and the annual dues (aka maintenance fees) your account will probably be placed with a collection agecy. You have the right under the FDCPA (google it), another federal consumer protection statute to order the dunning letters and the harassing calls to cease. The statute allows you to send a letter to the creditor demanding they cease all future contacts. There are penalties imposed on collection agencies that persist in their collection efforts after receiving a cease and desist letter. The statute allows the credtor one last contact after the c and d letter in which they can inform you as what future action they plan to take. If they threaten a suit, the FDCPA requires they follow through and to fail to do so is a violation of the statute. Most creditors will not sue to reduce the debt to a judgment but alas some do. If you get a letter threatening a suit, I suggest you contact a lawyer well versed in consumer law. Most suits of this type are usually settled for a fraction of the total debt and never go to trial.

Good luck whatever you do

Last edit by carvana on Sep 17, 2008 06:29 AM.

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11 years ago
Sep 17, 2008

By Luann M.

I realize this post is 1 yr old but would like more discussion if possible. We purchased at Monte Cristo Estates in Cabo on Aug 30, '09 with down payment - balance is due Nov 29. Bad decision and want to stop the process. What happens if we simply cut our losses (ie down payment) and notify MC that we don't plan to follow through. First, the 5 day recession period wasn't mentioned (five people in attendance didn't hear that mentioned) or we would have tried to do something about it before leaving Cabo. Since returning home, we have become more certain we shouldn't have done this. We are recently retired, have excellent credit, have no future purchases that would require credit checks so aren't concerned with a ding on our credit. We've never done anything like this, bailing out on an obligation. That being said, we are still willing to bail in the middle of this transaction. Is this unheard of? What consequences can be anticipated? Also - does anyone know of The Owners' Advocate? They charge a fee but guarantee release from time share contracts or 100% of your fee is returned.

Avatar for Luann M. Luann M.

10 years ago
Oct 31, 2009

By R P.

If the 5 day rescission period wasn't written into your contract then that's against the law in Mexico. I don't know anything about The Owners' Advocate but if they ask for an upfront fee then they're likely scammers also. My recommendation is that you get in touch with Profeco, the consumer advocate agency in Mexico ... they have helped many people that did not have the rescission clause in their contracts ... you can do a forum search to find how to get in touch with Profeco .... the only binding contract is the written contract .... what was said or not said in the presentation is not legally binding .... good luck.

Avatar for R P. R P.

10 years ago
Nov 01, 2009

By Luann M.

5 day recision period is buried in the fine print so our problem that we didn't read before signing...I just meant that there was no mention of that in the sales pitch and I suppose they are not obligated to do so. So, we are still considering bailing and wonder if anyone has ever heard of simply giving up their downpayment and refusing to complete the process. Is a credit ding (and nasty letters) the worst that can happen?

Avatar for Luann M. Luann M.

10 years ago
Nov 01, 2009

By R P.

luannm12 wrote:
5 day recision period is buried in the fine print so our problem that we didn't read before signing...I just meant that there was no mention of that in the sales pitch and I suppose they are not obligated to do so. So, we are still considering bailing and wonder if anyone has ever heard of simply giving up their downpayment and refusing to complete the process. Is a credit ding (and nasty letters) the worst that can happen?

I'm afraid it's a little too late to bail, however you could try talking to the resort and telling them that you don't want your deposit back, all you want is to stop the buying process .... I doubt it will work, but it's worth a try, and yes, if you bail it can, and probably will, affect your credit.

Avatar for R P. R P.

10 years ago
Nov 02, 2009

By Luann M.

Recently retired so, at this point not really worried about our credit rating as we don't anticipate any credit purchases in the future - no needs and won't purchase if can't pay cash.

I would like to hear from anyone who has knowledge of what happens - other than credit ding and nasty calls/letters. We can deal with the calls/letters. I don't want to end up in a Mexican jail.

ALSO - want to know of anyone who has worked with The Owners' Advocate. They seem legit from my research - even found a travel magazine article that refers to them as an option. Wish I had spent this much time researching TS before being lured into signing...hindsight. thanks for any responses

Avatar for Luann M. Luann M.

10 years ago
Nov 02, 2009

By Jenny Y.

Global Exchange Vacation Club -- Termination advice.

I see that this message is couple years old but I need similar advice so I thought I would reply to the same string.

I purchased my timeshare with GEVC a little over a year ago and I'm coming to find out more what a mistake it was making a purchase with GEVC. I feel that the salesperson completely fooled my husband and I by leaving lots of information out. I've been getting bills from both GEVC AND RCI for annual maintenance fees which I don't understand why I have to pay both of them. And paying RCI makes more sense to me since they are the timeshare company but I just don't understand what I'm paying GEVC for maintenance.

Over all, I'm just unhappy with GEVC and I feel their coniving ways of getting people to purchase their timeshares are so wrong. I've come to find out there are so many different fees on top of the thousands of dollars we paid for our timeshare and during the whole 3 hours we spent going over the timeshare before we purchased, the salesman didn't mention once of any of these other fees and reassured me there is no other fees other than an annual maintenance fee (which I also thought would be from one company not two!).

I desperately want to get rid of my timeshare with them. Can anyone give me some advice on how and where I can sell my timeshare? I'm also worried with GEVC being that they have fees for almost everything, that they will have penalty fines or anything else I'll be charged with if i sell it. Or is there a way to get rid of GEVC out of the picture and only deal with RCI? Please help!

Last edit by jennyy2 on Nov 30, 2009 10:11 PM.

Avatar for Jenny Y. Jenny Y.

10 years ago
Nov 30, 2009

By R P.

RCI is an exchange company .... they don't bill for maintenance fees .... as far as selling your GEVC membership, this market is the worst in timeshare history .... there are 1 cent to $1 timeshares on Ebay with no bids ... it doesn't look good for you to sell at this time and if you quit making payments it will negatively affect your credit rating.

Avatar for R P. R P.

10 years ago
Dec 01, 2009

By Jenny Y.

Thanks for your advice jajay. I guess I don't have much options at this point so I'll definitely look into renting it.

Avatar for Jenny Y. Jenny Y.

10 years ago
Dec 01, 2009

By Katherine S.

Global Exchange Vacation Club -- Termination advice.

Hi Jenny,

Can you contact me about your issues with Global Exchange? I too am more than upset about the entire process and would like to talk to you an others about what to do about trying to get out.

Thanks.

Katherine

Avatar for Katherine S. Katherine S.

9 years ago
Jan 26, 2011

By KC

Contact Me --- but HOW ?

katherines94 wrote:
Can you contact me about your issues with Global Exchange? I too am more than upset about the entire process and would like to talk to you an others about what to do about trying to get out.
Unless you actually provide an email address or a phone number, merely posting a "contact me" request message in the RedWeek forums affords NO actual avenue by which to even TRY to do so.

Just saying....

Last edit by ken1193 on Jan 31, 2011 06:28 PM.

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9 years ago
Jan 28, 2011

By Sue F.

Global Exchange Vacation Club -- Termination advice.

Hi! I am with you! This GEVC company is absolutely horrible and need to learn a few things about customer service!! I definitely want out! I have tried to call and email and they never respond! We signed up in the Napa location knowing that we could go to a training session which when I called to sign up I found out that the Napa location was CLOSED!!!!!! I finally got through to someone in SOuthern Cal to find out that they would send a training DVD. That was over a year ago. I am still waiting! I am also being billed for Maintenance fees by both GEVC and RCI! What a horrible mistake I made!!!!!!! I got it primarily to use as a business enhancement as I am in the wedding industry and thought I could help my brides and grooms with inexpensive honeymoons by purchasing "extra weeks" for them. The sales man told me I could. I am still trying to figure out how to buy them and how to navigate their system!!!!!

I am fuming!!!!! My last email to them was three weeks ago when I heard the entire company is now out of business. They haven't responded........

My email is suefaina@gmail.com if you would like to comiserate!!!! I even heard there is a class action law suit against them. I want to stop paying but I don't need a negative ding on my credit right now!

Avatar for Sue F. Sue F.

9 years ago
Feb 24, 2011

By R P.

Global Exchange Vacation Club -- Termination advice.

suef122 wrote:
I am still waiting! I am also being billed for Maintenance fees by both GEVC and RCI!

RCI is a timeshare exchange/rental company .... they do not bill for maintenance fees.

One more thing, IF GEVC has gone out of business, I definitely wouldn't be sending maintenance fees to them .... that's like throwing money down the toilet.

Avatar for R P. R P.

9 years ago
Feb 24, 2011

By L. D.

Global Exchange Vacation Club -- Termination advice.

I have major regrets purchasing GEVC/RCI!!! Has anyone been able to sell or rent? Did GEVC go out of business? Thanks!

Avatar for L. D. L. D.

8 years ago
Sep 27, 2011

By Katherine S.

Global Exchange Vacation Club -- Termination advice.

They did not go out of business; they're thriving. Good luck on getting any response. I've been trying for six months. Write to the corporate office attn. Rick Sargent.

Avatar for Katherine S. Katherine S.

8 years ago
Sep 27, 2011

By Cheryl K.

Global Exchange Vacation Club -- Termination advice.

Would anybody out there be willing to talk to me by telephone regarding the termination of my contract with GEVC. These people are so rude and threatening. I need all the help and advice. Perhaps we could campare notes. Cheryl @ 925-798-6343 Pacific Standard Time. Thanks

Avatar for Cheryl K. Cheryl K.

8 years ago
Sep 28, 2011

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