Did you know that around 9.6 million people own timeshare in the United States? Timeshares allow people to plan their vacations ahead of time, but they come with maintenance fees attached. If you are asking yourself, “what happens when you don’t pay timeshare maintenance fees?” we are here to clear up this concern.
Read our timeshare guide to learn the ins and outs of not paying your timeshare maintenance fees.
What Happens When You Don’t Pay Timeshare Maintenance Fees?
The truth is that it depends on your specific timeshare contract. Every timeshare has different stipulations written in their contract about what happens if you suddenly stop paying your maintenance fees. Some companies might charge you interest on top of your late fees.
Usually, the timeshare company will begin to call you when you first default demanding payment, and eventually they will also communicate through the mail. If they fail to get you to pay, then more than likely they will turn your account over to a collection agency that will try to recoup the money. If your account goes to a collection agency, then this will negatively impact your credit report.
Some timeshare management companies will go as far as taking you to court to pay your past due maintenance bills. They will file a lawsuit in your jurisdiction, where you have to attend the hearing to defend your reason for not paying.
Not paying maintenance fees will also default on your timeshare ownership. You will no longer have the luxury of vacationing on your specific weeks or whatever your agreement was for your vacation.
If you are really tight on money and can’t afford your maintenance fees, first call your timeshare company and speak to them. They might have options available for you. Some companies have in-house rental programs or even an exit solution available.
Another option is to look into reselling your timeshare. Resale listings Hilton is a perfect example of selling your timeshare to someone else that will enjoy it, and this will keep you from negatively impacting your credit score and defaulting on your commitment.
What Do the Maintenance Fees Cover?
Some people don’t really know why they have to continue paying maintenance fees even in the years they do not vacation. These fees are to help cover any upgrades the resort does and upgrades done to its rental units.
Fees also cover new amenities that the resort adds. Sometimes there are new pools, parks, gyms, spas, etc. added which are mainly covered by the maintenance fees that the members pay.
Feeling Like a Timeshare Fees Pro?
Now that we answered the question, “what happens when you don’t pay timeshare maintenance fees?” you can make an informed decision before you decide to just stop paying those fees.
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