With consumers spending less on travel and with the freezing of credit markets, lodging and timeshare companies, including Westgate, Starwood, and Wyndham, are turning to the one place where they can recoup some of their losses – timeshare owners.
It is understood that at any time and for any given reason timeshare resort companies can require timeshare owners to pay special assessments. It is also understood that maintenance fees are not capped and are subject to increase at the timeshare resorts’ discretion. Over the past few months there have been reports of timeshare owners receiving special assessment fees of $1,000 to $3,000.
Chad Newbold, President of VI Network, Inc., one of the nation’s largest facilitators of vacation properties, reports that the current economic conditions, the increase of fees for the 2009 use year, along with unprecedented special assessment billings and a diluted resale market, has created the perfect storm for the timeshare industry. This storm has caused a record number of owners simply wanting out which he predicts will undoubtedly result in yet another sharp increase in maintenance fees for the 2010 use year. (more…)