Wednesday, July 18, 2012

Credit Card Disputes For Timeshare Fraud

Many timeshare scam companies work with large credit card providers, such as Bank of America, to set up new credit cards for clients to finance the timeshare purchase. Often the clients sign some vague paperwork for financing, and don't realize that it is actually an application for a credit card. When they return home, the credit card arrives with the full charge for the timeshare already posted to the new credit card at a high interest rate. When the client calls the bank to inquire or dispute these charges stating that they were not aware that they were setting up a credit card, the company will show the paperwork that the client signed authorizing this type of financing. Ultimately, the credit card companies make millions of dollars in interest on these timeshare charges each year. As such, they have no interest in allowing the disputes to be successful, even if the timeshare was sold under fraudulent premises, because they have a valid written contract signed by the timeshare scam victim.

Even if the credit card was previously owned by the client, the likelihood of being able to cancel a timeshare scam contract via the credit card company is very low. The typical process is that the client will file a dispute with the credit card company, claiming that the timeshare company misrepresented the details of the timeshare contract. The credit card company will post a temporary credit back to the clients account while the dispute is being processed. The resort will be informed by the credit card company that the charge is being disputed on the basis of timeshare fraud. The resort is required to show written proof of the clients acceptance of the terms of the contract. In most timeshare scam cases, this works in the resort's favor as all the misrepresentations made are usually verbal promises. The written contracts are carefully reviewed on a regular basis by the resort's legal team to ensure that it covers their interests, and not the clients. Once the resort sends a copy of the written contract to the credit card company, in most cases, the credit card company is required to repost the charge back onto the client's credit card.

Other clients who have rescinded their timeshare contracts within the 5 day cancellation period allowed by Mexican law, and filed a credit card dispute at the same time, have found that the dispute process can delay the refund process. Normally, if a refund is approved by the resort, they will process it back to the credit card where the charge was initiated originally. If the charge is already in the dispute, the resort will require the dispute to be finalized before any refund is made, in case the temporary credit back to the card by the credit card company becomes permanent. This can delay the refund of the money and cause confusion for the timeshare scam victim.

In some cases it can be advantageous to file a credit card dispute. For example, if your payment is due, and you have hired our services to cancel your contract, this can be a way to delay the credit card payments that you were already required to make, without incurring interest charges or negative reports to your credit score.

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