My question involves collection proceedings in the State of: All
Timeshare Contract- Consumer vs Seller/Resort
Country of Origin- Mexico
Jurisdiction referenced in contract- Mexico
Jurisdiction authority referenced in contract- Federal Consumer Protection Agency Conciliation proceeding and if the controversy persist the Federal District Court of Mexico
Default clauses written in contract- In the event of default Seller may retain the amount the buyer may have paid on the date of default or demand 35% of the counter benefit provided hereunder whichever may be greater as a conventional penalty.
Secondary clause- Maintenance Dues, In the event of default on punctual payment a 5% charge will be made as well as a moratorium interest at the rate of 2% per month plus collection expenses. Non payment of maintenance dues for 2 consecutive years shall imply cancellation of the membership.
My questions:
Can this resort hire an American Debt collector to pursue this account and ruin an Americans credit for a contract executed while in Mexico, that falls under the jurisdiction of Mexican laws and is clearly stated in the contract the jurisdiction as to where any controversy regarding contract is to be heard and resolved?
If the contract already has default clauses clearly outlined, such as the default maintenance clause, that only implies cancellation and the default clause that provides for a conventional penalty, where does the resort get the authorization to abandon those written default remedies in favor of a third option, that is to pursue the collection in the USA using an American Debt Collector and threatening the detriment of the consumer's credit rating as leverage. This is a practice that is becoming all too common and leaves the consumer without the possibility or right to default in order to cancel his membership without suffering irreparable harm to his US credit rating.
I understand that if the American Debt Collector purchases the debt they can try and collect, but what if they are only servicing the debt? In the case of servicing the debt, wont they too have to abide by the default clauses already embedded in the written contract?
Last question- The contract has procedural processes outlined that say in the event of a controversy/dispute the parties agree to submit themselves to the authority of a conciliation proceeding at the Federal Consumer Protection Agency in Mexico and if the dispute continues to subsist after conciliation has be en exhausted then the parties agree to submit to the Federal District Court in Mexico. If the consumer has filed a controversy/dispute action/complaint with the Federal Consumer Protection Agency in Mexico seeking a conciliation proceeding with the Seller and the Seller has been notified, is the American Debt Collection Company required to respect that process and cease and desist collection efforts or can they continue to pursue the consumer and damage their credit rating? (this is if they are just servicing the debt and do not own it).
The consumer does not want to pay any more annual dues, he would like the membership terminated. Unfortunately there is no outlined termination clause although there should be, just through default as it reads. But if the Resort is going to ruin his credit and not simply act of the matter using the default clauses already referenced then the client may pay to save his credit rating and start this vicious cycle all over. Since payment will revert the contract from default to current thus extinguishing any chance of termination.
Timeshare Contract- Consumer vs Seller/Resort
Country of Origin- Mexico
Jurisdiction referenced in contract- Mexico
Jurisdiction authority referenced in contract- Federal Consumer Protection Agency Conciliation proceeding and if the controversy persist the Federal District Court of Mexico
Default clauses written in contract- In the event of default Seller may retain the amount the buyer may have paid on the date of default or demand 35% of the counter benefit provided hereunder whichever may be greater as a conventional penalty.
Secondary clause- Maintenance Dues, In the event of default on punctual payment a 5% charge will be made as well as a moratorium interest at the rate of 2% per month plus collection expenses. Non payment of maintenance dues for 2 consecutive years shall imply cancellation of the membership.
My questions:
Can this resort hire an American Debt collector to pursue this account and ruin an Americans credit for a contract executed while in Mexico, that falls under the jurisdiction of Mexican laws and is clearly stated in the contract the jurisdiction as to where any controversy regarding contract is to be heard and resolved?
If the contract already has default clauses clearly outlined, such as the default maintenance clause, that only implies cancellation and the default clause that provides for a conventional penalty, where does the resort get the authorization to abandon those written default remedies in favor of a third option, that is to pursue the collection in the USA using an American Debt Collector and threatening the detriment of the consumer's credit rating as leverage. This is a practice that is becoming all too common and leaves the consumer without the possibility or right to default in order to cancel his membership without suffering irreparable harm to his US credit rating.
I understand that if the American Debt Collector purchases the debt they can try and collect, but what if they are only servicing the debt? In the case of servicing the debt, wont they too have to abide by the default clauses already embedded in the written contract?
Last question- The contract has procedural processes outlined that say in the event of a controversy/dispute the parties agree to submit themselves to the authority of a conciliation proceeding at the Federal Consumer Protection Agency in Mexico and if the dispute continues to subsist after conciliation has be en exhausted then the parties agree to submit to the Federal District Court in Mexico. If the consumer has filed a controversy/dispute action/complaint with the Federal Consumer Protection Agency in Mexico seeking a conciliation proceeding with the Seller and the Seller has been notified, is the American Debt Collection Company required to respect that process and cease and desist collection efforts or can they continue to pursue the consumer and damage their credit rating? (this is if they are just servicing the debt and do not own it).
The consumer does not want to pay any more annual dues, he would like the membership terminated. Unfortunately there is no outlined termination clause although there should be, just through default as it reads. But if the Resort is going to ruin his credit and not simply act of the matter using the default clauses already referenced then the client may pay to save his credit rating and start this vicious cycle all over. Since payment will revert the contract from default to current thus extinguishing any chance of termination.
Can an American Debt Collector Collect a Debt for a Foreign Company
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