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  1. #1
    Join Date
    Nov 2010
    Posts
    12

    Default Collection of Debt from Time Share

    My question involves a consumer law issue in the State of: Pennsylvania

    In 2001, we purchased a timeshare. It was for 40 weeks, not an actual deeded contract. We paid it off very quickly and then shortly after were notified that they were nearly doubling our maintenance fees. Immediately, I contacted the company and they refused to change it so we told them that we no longer wanted this timeshare because we were scammed. We then sent it in writing. We received a phone call from Meridian Collections last June about this matter and we explained to them that it was cancelled so many years before that and why are they contacting us now?
    I went bankrupt in 2001 and my husband unfortunately went bankrupt last year. On both instances the trustees were notified of this contact, just in case and then also because of the phone call.
    I was denied credit recently and ran my credit report and found that Meridian has split up all of these fees and placed 3 separate collections charges on my report. All stating that they are new accounts as of June 2010. I called to dispute the charges and was told by the Experian Credit Bureau representative that yes, they can continue to charge me and every other year when they charge a maintenance fee, the debt is considered new.
    Here's where I'm confused:
    The debt is older than 7 years, although it was cancelled by us in writing over 9 years ago. The statute in PA is 4 years and it's only supposed to show up on your credit for
    7. Right?
    We both have been through bankruptcy since.
    How can they legally still come after us?
    Can they really keep charging us maintenance fees for the rest of our lives on something that isn't even deeded?

    The worst part is that we moved last year and I threw everything away because it's been so many years, I didn't think I still needed it.
    Please help!

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Collection of Debt from Time Share

    If the debt was discharged in bankruptcy, document the discharge to the creditor and collection agencies and instruct them not to contact you over a discharged debt. If they continue, you can consider bringing a contempt action in the bankruptcy court.

    I have no access to your contract, so I have no way of telling you whether you followed proper cancellation proceedings or if they have a plausible argument that you have an ongoing obligation under the contract. It sounds like it would be a good idea to have a real estate lawyer review your contract. You threw away the contract? Try to get a copy from the creditor or the collection agency.

  3. #3
    Join Date
    Nov 2010
    Posts
    12

    Default Re: Collection of Debt from Time Share

    I disputed this with the credit bureau who called to "verify" the debt. The collection agency verified it by phone. I found an email from the original creditor from last December which showed the debt as being delinquent as of 1/6/04 (although it was cancelled in 2002). It had all of the charges that they tacked on thereafter. I sent that to the credit bureau to prove that even if this was a valid debt (which it's not) that it was past the legal time to post it on my credit report. So, the bureau explains to me that they do would not make any changes in my report unless the collection agency says there was a mistake and that the only documentation they would accept would be a letter from the collection agency themselves or something that the collection agency has sent me. The collection agency hasn't sent me anything. The only way I was able to get their information was off of my credit report.
    I had wondered about it being a real estate issue or just a civil issue since what we were sold was vacations, not anything that was deeded. And, I do believe I through it all out. I was packing up the office and I had the giant folder in my hands and I remember shaking my head at my stupidity for wasting so much money and thinking about how long it had been since it was cancelled and I just tossed it. I don't think it made it into an office box.
    I feel like I'm in a no win situation here.
    Thanks again.

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