TRYING TO GET OUT OF MEXICO TIMESHARE

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Original Message:

Re: Re: TRYING TO GET OUT OF MEXICO TIMESHARE (by KC):

jonathans213 wrote:
We purchased a timeshare at Grand Solmar, Lands End in Cabo San Lucas. We paid and used it for a few years then stopped paying over COVID. They turned it over to a collections agency based out of San Diego, Resort Recovery. They have since reported the debt to Transunion (no other agency so far). I disputed it on Transunion's website but haven't heard back. I don't know if this is legal and can only really find out if I hire a lawyer I guess. So keep this in mind...

If a Mexican operation also has a business presence here in the U.S. (few do) they can (and they might, as you have now learned), enlist the "services" of a collection agency and / or report the loan default to the credit reporting agencies here in the U.S.. Both actions are certainly "legal", since you defaulted, so there would be no point in paying money to an attorney just to tell you so.

The bad news is that the negative TransUnion report will likely also appear with both Experian and Equifax (the other two U.S. credit reporting bureaus) in the near future. The good news is that the Mexican operation can do nothing more beyond initiating that (entirely valid, by your own admission) negative credit report for your having defaulted on a loan. All they can do is terminate your RTU (right to use) in Mexico, which is really nothing more than a "membership", with no ownership of anything anyhow.

Collection agencies have no legal authority; they rely upon trying to scare / shame / harass people into paying (for a percentage of any money collected). Ignore them. You can also instruct them not to ever call you and they must (by U.S. law) comply. They may still send you toothless letters trying to appear menacing, but have no fear of toothless paper tigers. Eventually, they will give up and go away once it becomes clear to them that you have no intentions of paying anything more toward an abandoned RTU contract that was executed in Mexico. However, the negative credit report can (and likely will) still remain in place for up to 7 years.