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P. Simmons
P. Simmons, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 34506
Experience:  16+ yrs. of legal experience.
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My wife and I purchased a shared interest in a vacation resort

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My wife and I purchased a shared interest in a vacation resort last April. The down payment, as indicated in the sales contract, was provided by a credit card lender with no payment or interest due for six months. Shortly after acquiring the property we discovered that we were grossly misled and deceptive sales tactics were employed by the sales staff. With the help of a third party and utilizing the provisions of the Dodd-Frank Act, the vacation resort company cancelled the contract and we returned the Deed in Lew of Foreclosure. The credit card company is insisting we still owe them the approximately $4,000 down payment even though the obligation was part of the original contract which is now cancelled and we have no separate agreement with them. Are we obligated to pay the credit card company even though we received no benefit from the down payment advancemant and the original sales contract was cancelled
Thanks for the chance to help. I am an attorney with over 12 years experience. Hopefully I can help you with your legal question.

Not sure I mention cancellation of contract but you also mention a deed in lieu...these are two separate things.

Cancellation of the contract would typically put you back to "square one" (put you in the same position as prior to negotiating the contract. A "deed in lieu" is an agreement to allow you to turn over the deed in return for no further obligation to the other party.

Did the agreement you had with the timeshare company include an agreement that they return your deposit?
Customer: replied 4 years ago.

The letter from the timeshare company was to confirm that my contract with them "has been cancelled", their words, due to the receipt of the Deed in Lieu of Foreclosure document we signed and returned to them. The letter also indicated that the obligation to the credit card company was still valid and that obligation remained. No other reference to return of the down payment was made.


That is the key....that is, if the agreement you reached held that

" the obligation to the credit card company was still valid and that obligation remained."

Then there would not be any requirement for them to return that money.

If you negotiated a termination of the contract, and that agreement used the language quoted above? That seems clear that they can keep that money.

The credit card company is the middle man in this...there is not any way to make them pay you back. They simply provide a service (allowing you to make a charge with a vendor and the vender receives the money for the charge at a later point)

So if the goal is to recover the deposit, you would have needed to negotiate that at the time you negotiated the deed in lieu agreement

What you describe? The agreement allows the time share company to keep that money

I am sorry to have to bear bad news

Customer: replied 4 years ago.

Do we need to pay the credit card company the remaining money owed to them as part of the down payment for the original sales contract?

Yes...based on the language you describe, you owe that money to the timeshare company. Because of that you owe the money to the credit card company.

Again, the credit card company is simply the middleman. If you have a dispute, it must be with the timeshare company. Once you made that charge, the credit card company was authorized to pay the charge to the timeshare company. They are not required, by law, to refund your money. The only way to get that money back would be to sue the timeshare company. But what you describe, the contract you negotiated allows the credit card company to keep that I think you may have a tough time forcing them to pay it back

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