What happens if you stop paying Diamond Resorts on a timeshare?
Many people who end up in timeshare contracts decide at some point that they want out. There can be many reasons for this, ranging from fraud by the salespeople who sold it to you down to simple changes in life circumstances where you don’t have enough money to pay for it anymore.
One thing many “timeshare exit” companies tell people is to just stop paying their fees, or even to take that money and give it to the timeshare exit company instead. That’s not our approach. We’re a consumer protection law firm, and our lawyers represent consumers in lawsuits and arbitrations. Long term, these are the only real way to resolve a dispute with a timeshare company legally other than negotiating with them if they’re willing to. If you think you have a legal claim against Diamond Resorts, we may be able to help. Click Here to Submit Your Claim.
So why not just quit paying your fees? You should be aware of the potential consequences from that in general.
First of all, your credit score could get destroyed. This is often part of what a “timeshare exit” company is planning on. They sell you the “exit” – and then sell you credit repair services when your credit score gets damaged. You need to at least be aware of this because it can cost you a lot more in the long run if you currently have good credit.
Second, you could get sued. Often companies don’t do this, and just foreclose on the timeshare instead – but if you stop paying, you could be in breach of your contract. But a foreclosure on your credit report can be extremely damaging in and of itself. The other potential issue related to this is that if you breach first, you could interfere with any legal claims you may have against Diamond Resorts.
Third, you could have collections agencies trying to collect the debt.
Fourth, there are at least some Diamond Resorts contracts which have provisions that allow them to accelerate what you owe if you miss payments – for example, one version says that if you default under the contract and do not cure it within 30 days after written notice, Diamond Resorts may “declare all amounts due under the Note and this Agreement immediately due and payable.” If you financed a large amount, that could be devastating if you have other assets.
We think a better approach if possible is to evaluate whether you have legal claims that you can pursue in arbitration or in a lawsuit. Depending on your situation, you may have a valid basis to sue for damages or to ask an arbitrator or judge to hold that your contract is unconscionable, for example, and cannot be enforced. Our blog explains a number of legal options you may have to sue Diamond Resorts here.
As explained there, it is worth at least contacting Diamond Resorts first, especially if you are having financial issues that mean you can’t pay at all. But if negotiation doesn’t work, you will want to investigate your legal options.
Our attorneys have represented clients in hundreds of arbitrations. If you think you have a legal claim against Diamond Resorts, Click Here to Submit Your Claim.