Royal Resorts India Timeshare

[Homer Share]

I have a timeshare in India which is managed through Royal Resorts in Indonesia. I am not able to continue paying the management charge and have told them as much. They are telling me that they will use repossession or legal action or both. I have no problem with repossession but am concerned about legal action. Has anyone got any experience with timeshare in India and this problem?

[holiday]

How much have you been paying yearly?

[sunshinegirl]

I too have received the same emails threatening court action for non payment of fees for this year.  I too would be interested if anybody has dealings with Royal Resorts for non payment of maintenance fees and if they actually were taken to court.  I own in Bali but it really is not cost effective anymore and i do not have the money to pay this year.  I have read my contract and notice it refers to rules of occupation but i have never received this document has anybody else got a copy of this document

[Homer Share]

When I originally bought the timeshare I was told that if I wished to give up my membership I would just have to stop paying the maintenance fee.

The rules do not refer to ownership, but to membership of the club. Membership only requires the payment of the maintenance charge. Ceasing to pay the charge results in the loss of membership.

Legal action is only applicable in the country of your timeshare or the offices of Royal Resorts. It could mean if legal action were brought that it would be unwise for you to visit Bali again.

These people are using the same pressure tactics they used when selling the timeshare with persistent threats and general unpleasantness.

In my case I have sold the timeshare on ebay. The reverse of the certificate makes it clear that it is the responsibility of the purchaser to pay all of the costs outstanding. This doesn't stop the threats though.

I have recently watched a Dispatches programme on Channel 4 about debt collection and it is clear that illegal tactics are frequently used to frighten people.

Looking at posters on this forum with similar problems it would appear that you would be worse off if your timeshare was in europe and more so if it were in the UK. Even in these cases there have been no successful cases brought by timeshare companies. Maybe the courts, if there have been court cases, have just not been able to find in favour of timeshare companies after their unfair pressure selling tactics.

[sunshinegirl]

Hi I would be grateful if you could advise me how you went about selling on ebay and did you pay the maintenance fee that was owed.  

From what I gather a new certificate of ownership would not be issued if outstanding fees are owed? Has your purchaser been issued with a new certificate?

I would be grateful if you could clarify as I am getting fed up of the emails I am receiving from them.  I don't even know if I can sell as according the emails I have received my membership has been suspended.  I have owned at Bali since 2005 and previously beforehand in Goa as you have rightly stated it was due to their pressure tactics why I ended up buying in Bali I don't have any intention to go back to Bali so if they cannot take legal action here in the UK I would be relieved.  

Either way I don't have the money to pay them but equally do not want to risk adverse credit rating in the UK because of this.  So if there is a chance of this I would rather try and offload this now.

In a previous conversation I had with them I was informed if I didn't pay before the next invoice is due then my membership cannot be cancelled and I would be liable for that fee too.  I don't know how they can do that when I have clearly emailed and stated that I do not wish to particiapte anymore.  I don't know whether just to send the certificate back to them?

Any advice would be gladly received.

[Homer Share]

I have never sold on ebay before so I just followed the instructions they give you. The weeks only sold for 99p but I just wanted to get rid of them. I don't know if a new certificate has been issued but I sent the certificates by recorded delivery, checked that they were received and received positive feedback from the purchaser. I have kept a record of these. I have therefore used 'my best endeavours' as required on the reverse of the certificate. The notes at the bottom of the certificate require that the purchaser 'satisfy themslves that the management charge has been paid up to date'. The certificate also states that the purchaser is responsible for the cost of issuing the new certificate. If the issue of a new certificate requires the management charge to be paid up to date then that is part of the cost of issuing the certificate.

Be aware that these people use pressure tactics to get at you. Many people will be frightened by this. I too am frightened by it but I cannot see how they can legally get at you under the legal system of a country outside the EU. As far as I am concerned if this company suffers financially because many are unable to pay these extortionate charges then that is no more than they deserve. Of course by giving up your 'membership' you have already lost the initial amount you paid for the timeshare so this demand for more money when you are not using the timeshare is just plain greed. If others say that the existing members will then have to pay more - that is a choice they make to stay with the timeshare system that basically extorts money from people using threats.

[Homer Share]

By the way I cannot see that 'if you didn't pay before the next invoice is due then your membership cannot be cancelled and you would be liable for that fee too' would be legal in the UK. You have given them ample fair notice of cancellation and a never ending open ended contract like that cannot be legal in the UK. In effect your liability goes on forever. In the UK if you default on your house mortgage payments the worse the bank can do is repossess your house (bad enough I know!), but they cannot then continue to charge you rates, etc. after they have repossessed your house!

These people often overstep the mark with their threats, but many people will be frightened that they may be able to carry them out!

[sunshinegirl]

Hi thanks for replying.

Well I had a call from Royal this morning as I had emailed them syaing I was trying to contact them.  I spoke to someone in management fee dept and explained that I would not be paying the fee etc.  He wasn't listening and kept saying can I pay in installments etc.  I said no and told him that I wasn't going to be payiong anything and for them to take whatever action they sort fit.  

I did think it was strange he never mentioned legal action also when I asked him for copy of the rules of occupation he asked me why I wanted it.  So I do think your right that we pay maintenance to have membership so not paying results in loss of membership.  When I stated this to him that I was told if I did not want to belong anymore then all I had to do was stop paying he never told me this is not the case.

So I do believe that they are trying to frighten people into paying.  He said that customer service will send me an email so  will wait or that.   I will try putting it up on ebay as I do not want anything for it really as I have had good use out of it I just do not want to be liable for the fees anymore

[Homer Share]

Wow! Their attitude is so like the Channel 4 Dispatches programme! 'Under Cover Debt Collector'. You can view it here:

http://www.channel4.com/programmes/dispatches/4od#2929731 [nofollow]

[sunshinegirl]

Are your Royal still writing to you for the maintenance charge even though you have sold it.  If so have you informed them that you have sold and what was there response.

The reason I ask is if the buyer does not complete by requesting a new certificate are you still liable as you will still be seen as the owner?

I just want to return the certificate back to royal saying I relinquish all rights but am not sure if this will be ok as I do not know if there is anything in their "rules" about this

[Ned60]

Homer Share.

I don't think your information on mortgage defaulting is correct.

In the case of a house, you can, as you say, get it repossessed but you're still technically liable for the difference between what you owe and what the lender gets for it when they sell it at auction.

Some people think they can just hand back the keys and walk away clear of any debt - not so.

[Homer Share]

Ned,

Of course you are correct. However you buy a house and you get a mortgage from a bank. With timeshare you buy a 'membership' and you don't get a mortgage. Membership can be curtailed if the appropriate fees for membership are not paid. Membership, in the case of timeshare, was gained under false pretences by the seller. They promised things at the sale which were not fullfilled. The buyer therefore has every moral right to cease membership. Using the legal system of the country of jurisdiction for the timeshare is morally wrong and the member is unlikely to be found against in court and, in any case, the courts juisdiction does not cover UK citizens in the UK. Even if a UK court were to look at a case it is extremely unlikely a UK court would find in favour of a timeshare company who sold under false promises in a foreign country. UK courts have only looked at cases for UK timeshares or, possibly, european timeshares.

[kdutta1]

Hi there
I also own a timeshare with Royal Resorts in India and am trying my best to get rid of it, only because I hardly ever use it.  Did you have any success in terminating membership? does that absolve you of future liabilites re management fees?