It is well-known that timeshare companies target members of the United States armed forces. Service members have good-paying jobs and wages that can be garnished in the event of a default. Also, under the Uniform Code of Military Justice, service members are required to pay their financial obligations.
What’s wrong with timeshares?
Many timeshare agreements have features that are considered forms of predatory lending. These features include high-interest rates and never-ending maintenance fees that trap service members in loans that can never be repaid. Not to mention that timeshares are not good investments; they are not easy to sell; and do not appreciate in value over time.
Does the Military Lending Act prohibit predatory loans?
Yes, the Military Lending Act or MLA prohibits many of the unfair lending practices used by timeshare companies. If you signed a timeshare agreement while on active duty, you may be able to have the agreement declared void from its inception and receive a refund of your payments.
What predatory tactics does the MLA prohibit?
The MLA bans loans that have any of the following features:
- An interest rate greater than 36%
- Mandatory arbitration of disputes
- Mandatory pay-by-allotment
- Mandatory bank account access
- Prohibitions on prepayments and prepayment penalties
- Rolling over or refinancing of loans
- Waivers of federal and state rights under laws like the Servicemembers Civil Relief Act (SCRA)
What types of loans are covered by the MLA?
- Timeshare agreements and other installment loans
- Payday loans
- Vehicle title loans
- Student loans
- Credit cards
- Unsecured loans
Can I sue my timeshare company under the MLA?
Yes. Depending on the terms of your timeshare agreement and the applicable statute of limitations, you may be able to sue under the MLA. Let us know if you were on active duty when you entered into a timeshare agreement with any of the companies below:
- Wyndham Vacation Resorts
- Travel + Leisure Co.
- Bluegreen Corporation
- Holiday Inn Club Vacations (Orange Lake Resort, Silverleaf)
- Westgate Resorts
- Vida Vacations
- Shell Vacation Club
- Diamond Resorts
- Disney Vacation Club
- Hilton Grand Vacations
- Marriott Vacations Worldwide
- Capital Vacations
- Berkley Group (Vacation Village, Lando, Massanutten)