Timeshare ownership is often viewed as an appealing investment. Part-ownership of a luxury resort property brings a sense of accomplishment. Unfortunately, timeshare companies often take advantage of unsuspecting customers. In many cases, they even break the law by violating consumer protection laws.
Lemon Lion Consulting helps timeshare customers fight back when unfair timeshare financial practices harm their finances.
Often, timeshare proposals appear sound on the surface, but then, they seriously harm your finances. We encourage individuals to become informed about these laws and seek support with the timeshare cancellation process.
Predatory Lending in Timeshare Transactions
Predatory lending is a pervasive issue in the timeshare industry. It occurs when a timeshare company intentionally takes advantage of its customers’ lack of knowledge of financial matters like loan terms and interest rates.
These companies knowingly offer abusive loan terms, assuming that their customer won’t be able to spot the negative long-term financial implications until they are locked into a legally binding contract.
Predatory lending can have a devastating effect on the finances of its victims. Unclear loan terms, excessive interest rates, and unexpected fees often mean timeshare customers are left struggling to keep up with timeshare payments.
Law That Protects Timeshare Owners
One of the most relevant consumer protection laws that applies to illegal or unfair timeshare practices is the Truth in Lending Act (TILA) of 1968. This act requires that lenders inform potential customers of key loan terms, including elements like a loan’s annual percentage rate (APR) and additional costs or fees the customer will be responsible for.
Long-Term Implications of Timeshare Contracts
In addition to costs that rise to unmanageable amounts, timeshare contracts can have other issues that lead to long-term financial problems.
It’s common for timeshare agreements to contain perpetuity clauses. This means that financial obligations for loan payments and maintenance fees pass to the owner’s heirs. Timeshare owners often think they’re passing on an asset to an heir in the form of partial property ownership when, in reality, what is inherited is a financial burden.
Timeshare Owners Should Know Their Rights
Timeshare owners who want to protect their finances need to know their rights. If a timeshare company is engaging in suspicious practices like demanding excessive and increasing maintenance fees, it’s time to seek the support of a consumer protection consulting agency.
About Client
Lemon Lion Consulting is a leading timeshare exit firm with a team rich in consulting and consumer advocacy experience. We’re recognized for our exceptional service with an A+ Better Business Bureau rating and consistent 5-star reviews. To date, we’ve freed clients from over $40 million in timeshare mortgages. As advocates in the timeshare exit industry, we continue to guide clients toward financial freedom and peace of mind.
Published by: Holy Minoza
