Rescinding With Credit Card and No Down Payment
One of our users left the following comment on our 10 Steps to Successfully Rescind Timeshare article:
I signed with RCI and Legacy, its past the cooling off period, but I haven’t paid the down payment yet. Does that mean the contract is still valid? should I just cancel the card and not pay? would that cancel my contract?
It would make things a whole lot easier if you could simply cancel your credit card to get out of your contract, but unfortunately that is not the case. According to credit.com, once the seller has your credit card information, they will also be in possession of your social security number. So once you cancel the card, the account will then be referred to a collection agency, at which point they can report it to a credit reporting agency. You will still be responsible for payments and if you do not make them on time, it could hurt your credit score.
It is also likely that your down payment by credit card was processed very quickly by the seller when you signed the contract and that what you now have yet to pay is the bill from your credit card issuer. The good news about making such a purchase on a credit card, however, is that you have the right to dispute the charge if you feel the seller misrepresented the product (in this case, the timeshare) or did not deliver what was stated in the contract. There is a time limit for disputes, however, usually around 60 days. Read your credit card agreement so you know how much time you have.