Meridian Financial Services: Tailored, Ethical Collections Support for Timeshare Resorts Facing Challenges

 In a recent interview with Shep Altshuler, publisher of TimeSharing Today, Brian Casey, Collections Manager at Meridian Financial Services, shared insights into the essential role his company plays in helping timeshare resorts address escalating unpaid dues and defaults in today’s challenging marketplace.

As the head of the collections department, Casey and his team work directly with timeshare owners facing financial difficulties and resort boards needing effective strategies to manage rising unpaid dues and recover ownership from defaults. Here, he provides a comprehensive look into the processes, obstacles, and solutions his team employs to support timeshare properties.

Persistent Industry Challenges

With nearly 19 years in the field, including over eight with Meridian, he has witnessed significant shifts in timeshare collections. “Unpaid accounts are on the rise,” he explains, citing economic factors like inflation and high debt levels, as well as a broader societal shift away from personal responsibility. This trend, he notes, creates ongoing obstacles for timeshare collections, requiring a robust, structured approach to prevent further financial strain on resorts.

Strategic Collection Solutions

The collection strategy includes two stages. Their early-stage intervention program begins at 30 days past due, with contact made on behalf of the resort to encourage owners to address their debt. The late-stage program kicks in at 90 days overdue, with Meridian stepping in as an official third-party collection agency.

Casey explains that these programs aim to prevent overdue accounts from escalating, giving owners opportunities to make arrangements before their debts impact their credit—a serious consequence that affects future finances and rental options.

Advanced Technology Protocols

To maximize efficiency, Meridian leverages advanced technology in collections. Automated dialers and specialized collection software optimize call schedules, track account details, and organize campaigns based on priority. A unique disaster protocol, known  as “status 57,” pauses calls to owners affected by recent natural disasters, allowing time for recovery. This protocol aligns with a considerate approach, emphasizing respect, efficiency, and sensitivity. 

Respectful, Effective Communication

In the timeshare industry, where defaults often stem from financial hardship or dissatisfaction, empathy and clear communication are essential to maintaining positive relationships and achieving successful outcomes. The company’s “soft touch approach “ is rooted in understanding and active listening. Team members are trained to respond thoughtfully to each owner’s unique situation, fostering an atmosphere of respect and support.

This method not only builds trust but also ensures strict adherence to federal and state lawsregulations, including the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Telephone Consumer Protection Act (TCPA), and Consumer Financial Protection Bureau (CFPB) regulationsguidelines, keeping interactions compliant and ethical.

For timeshare boards and property managers, Casey underscores the importance of clear, consistent communication with owners, particularly when handling unpaid accounts or introducing special fees. “When assessing a special fee, be very clear about its purpose,” he advises, emphasizing that transparency can alleviate confusion and prevent conflict.

A structured deed-back program further enables resorts to address owner concerns constructively, while a strategic sales program can fill vacant spots and reduce unpaid accounts, helping resorts manage turnover and foster positive relationships with owners, contributing to a healthier financial outlook.

Ethical, Compliant Practices

Rigorous employee training reinforces the company’s commitment to ethical, compliant collections. New hires undergo extensive training on all federal and state laws and regulationsFDCPA, Fair Credit Reporting Act (FCRA), the Telephone Consumer Protection Act (TCPA), and CFPB regulations, and their  initial calls are closely monitored  continuously. A 100% pass rate on all compliance exams is required, ensuring high standards across the team. This thorough training and continuous monitoring safeguard the company’s reputation and maintain the integrity of its practices.

Transparent Client Reporting

Transparency is a priority. Resorts can access real-time account updates through a client portal, ensuring constant visibility into the collections process. Additionally, detailed reports keep resort boards informed of items like address changes and other account updates. This transparency helps resorts make informed decisions and comply with their own regulatory obligations.

Preparedness for Natural Disasters

As natural disasters become more frequent, Casey underscores the importance of preparedness. Meridian’s experience, coupled with a structured disaster response, allows the company to adapt quickly, offering flexibility and understanding to affected owners. This means pausing contact immediately after a disaster and resuming outreach with a sensitive approach, extending payment plans, or offering settlements when possible.

Expanding International Reach

Meridian extends its services to international timeshare owners, applying the same structured and ethical approach for overseas accounts. Although credit bureau reporting is limited to domestic accounts, thorough communication and bilingual support accommodate non-English-speaking owners, effectively managing the complexities of international collections.

Suggested Planning Takeaways

The interview concluded with these key takeaways for timeshare boards and property managers:

• Adaptability: Employ flexible approaches that respond to evolving obstacles, ensuring the collections process remains effective in a changing landscape.
• Use of Advanced Technology: Leverage technology to streamline operations, optimize communication, and improve efficiency, particularly in tracking and managing accounts.
• Empathy-Driven Communication: Prioritize understanding in interactions with owners, balancing financial goals with respect for individual situations to maintain positive relationships.
• Regulatory Compliance: Uphold strict compliance with FDCPA and CFPBall state and federal regulations guidelines to protect the company’s integrity and ensure ethical practices.

By integrating these strategies, timeshare resorts can better navigate the complexities of today’s collection landscape.

About Meridian Financial Services

Meridian Financial Services is a trusted leader in the debt collection industry, specializing in tailored collection solutions for timeshare resorts, homeowner associations (HOAs), and condominium communities. With nearly four decades of experience, Meridian offers a balanced approach to collections that meets the needs of clients while respecting timeshare owners.

Headquartered in Asheville, North Carolina, the company manages both domestic and international collections, providing multilingual support and customized services that accommodate diverse ownership models, from deeded weeks to points-based programs.

For more information, contact:
Gregory Sheperd, President, Meridian Financial Services, Inc.1636 Hendersonville Rd, Suite 135 • Asheville, NC 28803828.575.5179 • Fax 828.575.9570Cell 828.280.0474
gsheperd@Merid.com, Website: www.merid.com