Time Share Fraud in Mexico

[carpediem Junior Member Find all posts View Profile Close carpediem]

Two weeks ago I purchased timeshare points through RCI at a Mexican Resort. We were approached at the airport by the offer of a cab ride. Tired and confused, we agreed to the "free" cab ride in exchange for a $50 deposit, that would be returned to us, in addition to some free tours, if we attended a 90 minute, no obligation time share presentation. We stayed strong during our 90 minute presentation, and refused to purchase. We asked for our $50 deposit and gifts, and kept getting the runaround. The 90 minute presentation turned into a 3 hour ordeal. We told them that we liked the idea of a timeshare, but that we couldn't afford it. We said that in 5-10 years we would be interested in purchasing. We were told that we could rent out our time share, and that it would cover all of the costs. At the end of 5 years, we would have a timeshare that was mostly paid off, with no out of pocket costs. That was when they asked for a credit card, just to check if we were qualified for the wonderful deal that they were offering us. They returned with a credit line that they opened in our name, that would cover the $5,000 dollar deposit.
Then we met with another person who had the papers to sign. We were skeptical because there were no promises in writing regarding the renting of points. On five separate occassions, our time share presenter was brought back into the room to reassure us. Against my better judgement, we eventually signed all of the paper work.
Within an hour of signing, we regretted the agreement. We wanted to cancel. However, we were told that while we were free to cancel at anytime, we would lose our $5,000 deposit. "You can cancel in one hour, or you can cancel in one year, but we will keep the deposit", is what we were told. I know that there is a cooling off period in the US, but I was not familiar with Mexican law, which states that you have 5 days to get out of the aggreement, with no financial obligation.
When I returned home I discovered this timeshare forum, and then I discovered these other helpful sites:
Elcidvacationsbeware Home
Fighting Back
Mexican Timeshare Fraud

Now I intend to fight this with every possible avenue. I might not win, but I hope that I can prevent this from happening to other people. I am also determined that the resort will not profit off of their law-violating fraud. It helps to know that I am not alone. Anyone who has been similarly defrauded or are just interested in joining the fight against timeshare fraud, please contact me at kookycole@yahoo.com. Together, I hope that we can force the American and Mexican governments and consumer protection agencies to better protect against time share fraud.

[Spence Super Moderator Find all posts View Profile Close Spence]

While we all feel for you, you should have purchased knowing that all you have is what the contract says. If they could easily rent it all for what they told you, why would they even involve you, they'd make all the money renting without your 'help.' Mexico has similar laws concerning rescission to protect the consumer and they don't include losing your deposit (was the deposit on your credit card which you foolishly let them have, or are you out any money here in the USA?)

[carpediem Junior Member Find all posts View Profile Close carpediem]

They gave an explanation for why they needed our "help". Something about their inability to rent the rooms as if they were hotel rooms, that they had to have enough owners who were willing to give up their vacations in order to rent them out this way, and that they could receive more money renting them to non-owners the same way as a hotel. There was more to the explanation, but I cannot remember it at this time. It sounded plausible then since we were very ignorant of the way time shares work.
The deposit was on the new credit line, which I foolishly allowed them to open. Our behavior may have been naive, but that does not give them the right to violate Mexican law. The tone of your response suggests that I got exactly what I deserved. However, there are a lot of normally intelligent people who fall victim to timeshare fraud, and people should not try to shame them into thinking it was all a result of their own stupidity, completely dismissing the culpability of the companies that commit such fraud, and those agencies that are aware of the fraud, yet do not do enough to prevent it.

[Spence Super Moderator Find all posts View Profile Close Spence]

I agree, the hard sell and lies should not be allowed.

[buff Senior Member Find all posts View Profile Close buff]

The hard sell and lying is what selling timeshares is all about. Unfortunately thats the way it is. Spence and most of us who have been around all know this dispite what anyone says here publicly.

I feel bad that you got ripped off. Some of the timeshare salesman are just hired guns who have full time jobs and make a few dollars selling timeshares.

Don't think you will have much success with your cause. You are just one of thousands who have been victims of the corrupt world of timesharing in mexico and the US.

You found this site and there are are many good people who will help you

[Spence Super Moderator Find all posts View Profile Close Spence]

Au contraire, carpediem's case is a prime example of cases that PROFECO has taken care of in the past. That's the avenue to pursue, you never know.

[brucecz Moderator Find all posts View Profile Close brucecz]

I also suggest you contact Profeco after reading this link The Timeshare Beat: Timeshare Fraud in Mexico

It has been reported by a few that even after the right to recind has passed they are able to after working with Profeco and their credit card companies they got their Mexican contract cancelled.

Most of those Mexican cancelled contracts reported were sold by the huge Mayan Group.

To others anytime you are thinking about buying a timeshare weather as a resale or from the developer and especially outside the US you need to do your due diligence before making any type of committment.



We wish you good luck but try to cancell. You may have some sucess but if you do not have sucess then at least you know you made the effort.

Bruce

[buff Senior Member Find all posts View Profile Close buff]

Bruce, Thanx for reminding me. I remember now they have been succesful with the Mayan Palace properties. I stand corrected.

Has anyone seen the TS timeshare people get together in the morning before they do their 3 hour deal. Great PEP Rally.

[brucecz Moderator Find all posts View Profile Close brucecz]

Bruce, Thanx for reminding me. I remember now they have been succesful with the Mayan Palace properties. I stand corrected.

Has anyone seen the TS timeshare people get together in the morning before they do their 3 hour deal. Great PEP Rally.

Buff, thank you for your nice kind comment.

I hope the OP is able the reslove his problem to his satisafaction. Many and especially newbies have had similar experiances and we are so gald for sites like this one that are here to help all timesharers.

Bruce

[taffy19 Gold Contributor Find all posts View Profile Close taffy19]

Two weeks ago I purchased timeshare points through RCI at a Mexican Resort. We were approached at the airport by the offer of a cab ride. Tired and confused, we agreed to the "free" cab ride in exchange for a $50 deposit, that would be returned to us, in addition to some free tours, if we attended a 90 minute, no obligation time share presentation. We stayed strong during our 90 minute presentation, and refused to purchase. We asked for our $50 deposit and gifts, and kept getting the runaround. The 90 minute presentation turned into a 3 hour ordeal. We told them that we liked the idea of a timeshare, but that we couldn't afford it. We said that in 5-10 years we would be interested in purchasing. We were told that we could rent out our time share, and that it would cover all of the costs. At the end of 5 years, we would have a timeshare that was mostly paid off, with no out of pocket costs. That was when they asked for a credit card, just to check if we were qualified for the wonderful deal that they were offering us. They returned with a credit line that they opened in our name, that would cover the $5,000 dollar deposit.
Then we met with another person who had the papers to sign. We were skeptical because there were no promises in writing regarding the renting of points. On five separate occassions, our time share presenter was brought back into the room to reassure us. Against my better judgement, we eventually signed all of the paper work.
Within an hour of signing, we regretted the agreement. We wanted to cancel. However, we were told that while we were free to cancel at anytime, we would lose our $5,000 deposit. "You can cancel in one hour, or you can cancel in one year, but we will keep the deposit", is what we were told. I know that there is a cooling off period in the US, but I was not familiar with Mexican law, which states that you have 5 days to get out of the aggreement, with no financial obligation.
When I returned home I discovered this timeshare forum, and then I discovered these other helpful sites:
Elcidvacationsbeware Home
Fighting Back
Mexican Timeshare Fraud

Now I intend to fight this with every possible avenue. I might not win, but I hope that I can prevent this from happening to other people. I am also determined that the resort will not profit off of their law-violating fraud. It helps to know that I am not alone. Anyone who has been similarly defrauded or are just interested in joining the fight against timeshare fraud, please contact me at kookycole@yahoo.com. Together, I hope that we can force the American and Mexican governments and consumer protection agencies to better protect against time share fraud.

It's law in Mexico that you will have a cooling off period of five days and that all your money should be returned to you if you decide to rescind the contract. If they made you sign a waiver that you cannot rescind, you have a reason to make a formal complaint to Profeco. You can do this even after the five days have passed but you'll have to follow certain procedures which are posted here:

http://www.profeco.gob.mx/consumidor...sp#extranjeros

If you go down the page, you will find the following text in English and instructions what you need to do if you want want to go through with this.

Attention to foreign residents

Profeco is part of the administrative branch of the federal government of Mexico. Seeks to strengthen the citizen's power and enforces the law to achieve equity on consumption relations.

The Department of Conciliation Services to Foreign Residents (Departamento de Conciliacion a Residentes en el Extranjero C.A.R.E.) provides assistance towards solving controversies arisen between foreign or Mexican citizens living abroad that acquire any product or service from a legally established Mexican supplier and are not satisfied with it.

C.A.R.E. assists the parties within free of charge mediation/conciliation procedures, based upon the terms of the contract that consumer supplies.

To start the conciliation/mediation procedure C.A.R.E. must analyze the documentation submitted by the consumer related to the following information:

1. Complaint letter stating the following:

Consumer: name, mailing address, telephone number and e-mail.
Supplier: name and address as stated on the receipt or contract.
Brief description of the complaint, including the date of purchase, cost of the goods or service, and claimed amounts.
2. Completed complaint form
3. Copy of ID (Passport or Driver's License)
4. Copy of contract, invoice payment, bills, credit slips or receipts, as evidence of payment.
5. Copy of additional documents available to support the complaint.

The above information must be e-mailed to: extranjeros@profeco.gob.mx
Or sent by regular mail to:

Procuraduría Federal del Consumidor,
Dirección General de Quejas y Conciliación,
Av. Jose Vasconcélos no. 208, 6º. Piso,
Col. Condesa. Del. Cuauhtémoc,
C.P. 06140, México, D.F.

It is important to stress that all personal and confidential information colleted by Profeco, C.A.R.E., will be considered as non disclosed and protected by our federal laws.
For further information, do not hesitate to contact us at: (+52) 55 5211-1723 or (+52) 55 5625-6633, or write to: extranjeros@profeco.gob.mx

The following brochures are meant to be informative:

About Profeco
Take your time when buying a timeshare
Procedure (english version)

Did you read these links?

The Timeshare Beat: Timeshare Fraud in Mexico (about timeshare fraud)

The Timeshare Beat: Timeshare Fraud in Mexico (about the illegal waiver)

Did they not use your current credit card for the down payment but opened up a new credit line? I don't know what that means but that seems to be a new approach these resorts are taking today. Who did you buy from?

If it has to do with your credit card, you are still in time to dispute this charge. Some people have done this and have attached some of the threads in the timeshare forum web sites and have been successful getting the charge reversed. All you need to do is Google "timeshare fraud or scam". However, in your case, it may be different since you opened up a new credit line.

If you start a formal complaint with Profeco, make sure you send it by registered mail or FedEx (you better ask them as I would call them before you proceed). Make copies of everything so you have proof. Once you have started your formal complaint, the resort will contact you most likely and offer you a different deal. Don't accept it if you want your money back and do everything in writing and send a copy to Profeco. Let them handle it from here on. It will take time but many people were successful getting their money back even after the five days had passed.

They are not supposed to pitch rental income unless it is covered in the contract. If it's not, they may have defrauded you. Profeco would be the agency to help you with this free of charge or you can hire an attorney. Some people have done that too and you can find attorneys in this country who have a license in Mexico too but speak English.

[carpediem Junior Member Find all posts View Profile Close carpediem]

Thank you iconnections, and all other's who have posted. I did not sign any illegal waivers. They just informed me that I had the right to cancel at anytime, but that I would lose my deposit. We now know that this was a violation of Mexican law. We have considered contacting Profeco, but we do not think our complaint will do any good, because we have no evidence that we attempted to cancel, that we were lied to about our rights, or that false promises were made. We may attempt to contact them anyway.
I have filed a credit card dispute, based on fraud. If I lose the dispute and still refuse to pay, what can I expect? I know that our credit will be ruined, but beyond that? Are things like wage garnishment likely to occur?
Also, what is the worst we can expect from the timeshare company when we refuse to honor the contract?

[carpediem Junior Member Find all posts View Profile Close carpediem]

Full refund and contract cancellation

I posted about timeshare fraud in Mexico. I appreciate all the comments and advice, and just wanted to let you know that we received a full refund and the contract was cancelled. In the end, all it took was the review that I left on trip advisor.

Thanks again!

[khdem Member Find all posts View Profile Close khdem]

Full refund

So glad to hear that you have received your refund...I too have made decisions this year that I have later had to rescind...I am so glad to found this board and resale opportunities. I am waiting for my first resale purchase to finalize...

Kay

[brucecz Moderator Find all posts View Profile Close brucecz]

I posted about timeshare fraud in Mexico. I appreciate all the comments and advice, and just wanted to let you know that we received a full refund and the contract was cancelled. In the end, all it took was the review that I left on trip advisor.

Thanks again!

Which resort?

Bruce

[carpediem Junior Member Find all posts View Profile Close carpediem]

It was the El Cid Marina. Trip advisor has them rated as the number 1 hotel in Mazatlan, which is apparently very important to them. They returned the deposit and cancelled the contract, in exchange for my agreement to remove the review.