Post reply

Mexican timeshares (by KC):

tracey75 wrote:

Ken, I am not so sure that all Mexican timeshares have no leverage if you stop paying. I don't have any Mexican timeshares so this isn't from my personal experience but I believe many of the larger resort chains have registered US offices and make sure when they are selling to US citizens that they have some kind of leverage. Otherwise they wouldn't spend so much money on the sales budget for commission and gifts to get Americans in. if all they have to do is stop paying at anytime. Like any other contract, like one for a health club or a phone/cable provider with a contract for x years, they can report the non payment to a credit bureau and they can sell the dept to collectors. Some may even have Canadian offices but I don't think most bother.

It doesn't mean that you can't just stop paying but it doesn't mean that if you stop paying -poof- it all automatically just goes away. It certainly doesn't mean you should go through some sort of Mexican relief or advocate company.

You are absolutely correct that If a Mexican entity actually has a business presence of any kind here IN the U.S., they can (and very well might) utilize any and all collections processes and avenues available within the U.S. If they don't, they can't --- it's that simple. Anecdotally, (I have no hard, reliable numbers to cite) it seems that most Mexican timeshare operations do NOT have any such legal presence here, but there are surely noteworthy exceptions.

Bear in mind that Mexican RTU contracts are essentially nothing but "club memberships", in which the "member" owns absolutely NOTHING ---- just a right to periodically access and utilize the property. Any and every such Mexican operation initially collected some serious money from the "member" when the member initially "bought in", making the cash register ring, so to speak. It's no skin off their nose at all if people later smarten up and decide to just walk away from the "membership". After all, the initial money is long since "pocketed" and the procession of vulnerable Gringos into Cancun and Puerto Vallarta is virtually endless and non-stop. For every "member" that walks away, dozens more gringos will walk in --- and some WILL buy in to the "pitch". It's just business. Mexico has a 5 day rescission (cancellation) period, but there are no easy exits after that 5 day period expires.