Membership Scam
Complaint
jctauro
Country: United States
Here is my letter to CEO.
September 2, 2011
Mr. Roberto Chapur, President
Palace Resorts, Inc.
8725 NW 18th Terrace. Suite 301
Miami, Florida 33172
Dear Mr. Chapur, Mr. Maduro and Palace Resorts Member Services
I am writing this letter to relay to you my experiences at the Palace Resorts in Cancun, where we were guests from August 1 to August 7 and to request cancellation of my contract and refund of monies deposited.
We arrived Cancun on July 30, it was already 6PM, we had been up since 3AM (bad flight connections), tired and hungry. We were pulled aside at the airport by Hugo, who we believed to be with the Cancun Visitors Bureau, who proceeded to guide us to a standup table, under the pretense that he was to confirm our printed transportation reservation, which we had booked from home. He advised us to sign the billet and then launched off into asking us about our vacation plans. We listened to him but initially were not interested in making any plans until our traveling companions arrived the next day, however, persistent Hugo said that we would not be able to take advantage of his deals once we left the airport building as he said they were not allowed outside, a federal building. Long story short, we yielded and purchased $150.00 worth of reduced price tickets in exchange for a presentation at the Cancun Palace.
The next day, we met for breakfast with Rodolfo Navarette at the Cancun Palace, took a quick tour of two rooms and then proceeded to the sales den. It seemed rather innocuous at first but then a speaker would speak. We were “shushed” and not permitted to continue our discussion until the new member introductions were made.
We were shown the glossy brochures of the various Palace resort and then given the introduction of the two levels of membership, imperial weeks, and an incentive round-trip. The entire concept of membership just did not align with our idea of what we were interested in. As we were about to leave, Rodolfo then introduced the idea that, while the “equity trade” or timeshare transfer program was no longer an option, he could ask his superior to do that for us—but he would only would ask his superior if we were in fact going to go ahead with it. We considered it and after some further calculations, we said we were not interested and were getting ready to leave. By now we were approximately two hours into the sales presentation.
We simply weren’t interested because it just didn’t make sense to outlay a significant amount of money ($19,000) and still have to pay for the use weeks. Rodolfo explained that the preferential rates for members, of course, were significantly lower than what nonmembers would pay. This point was driven several times as I questioned the value of membership. At some point, then, Ulises Gonzalez took over the presentation and indicated that he could make our investment even more valuable by increasing the amount of our timeshare trade-in. Now we have been contacted by Palace Resorts and being offered the opportunity to “buy back” our timeshares for close to $2,000 USD, which transaction, as stated earlier is absent from the body of the main contract.
For reasons, I now seriously regret, we agreed to the purchase of Palace Resort Membership—depositing $9500 of the purchase amount plus $690 in administrative fees on my credit card and paying the balance of $9500 over 48 months. Overall, we were at this presentation from 8:30 through 2:00 PM. We didn’t even have lunch.
Since we left Cancun, we have been researching the value of the membership investment and it is simply not as promised. The savings we were told we would have because of membership was just not so. Opportunities abound for nonmembers to purchase all inclusive vacations at Palace Resort properties at or below the printed preferential rate sheet provided to us. Additionally, we have grave concerns about the timeshare trade-in that formed the basis for our reduced price. First, the trade-in is not even detailed in the body of the membership contract. This omission was not apparent as it was mentioned in an exhibit sheet that was initialed by my wife and I but had no acknowledgement from Palace Resorts. Further research with others transacting with Palace Resorts who have been promised transfer of their timeshares-- never took place, leaving them with collection agencies after them for maintenance fees on what they thought was transferred property.
Additionally, while we were reviewing the contract documentation provided to us, there was nothing advising us of right to cancel our contract within five days—nor were we advised orally of this right. Had we been so advised, we would most likely be in this predicament. I perused the Federal Consumer Office (PROFECO) website, which advises that we should have been advised of our right to cancel and further, that said contract document should display the PROFECO registration number, which is notably absent from the documents given to us.
While our incentive stay at the Palace Resort (Moon Palace) was superb—the staff at every turn was courteous and friendly, our experience from the aggressive sales process starting from the misrepresentation at the airport to the Cancun Palace has left us with distinctively adverse feelings. If the membership program were truly an investment to behold, then such aggressive stout sales tactics would be unnecessary. Unfortunately our realization after research these past several weeks that the representations of this being a sound investment are just not supported have racked us with stress and disbelief that we were treated in such a manner. We have lost sleep and our peace of mind.
Therefore, we are writing to request the cancellation of our membership and the return of our deposit of $9,500.00 USD and administrative fees of $690.00 USD, as well as the cancellation of all further charges for our membership. We have dealt with your company in good faith, with open minds and trust in your representations. Please do right by us and it is our sincere hope that as a leading resort and hospitality company in Mexico, that you will do the right thing and cancel this membership now.
Kindly acknowledge receipt of this letter and outline for us the next step to be taken to complete cancellation of our membership, and the refund of our deposit and fees.
Sincerely,
Jose and Dynnah Tauro
CC:
Mr. Frank Maduro
VP Marketing
Palace Resorts, Inc.
8725 NW 18th Terrace. Suite 301
Miami, Florida 33172
Profeco
Sede nacional de la Procuraduría Federal del Consumidor.
Ave. José Vasconcelos 208 Col. Condesa,
Del. Cuauhtémoc, México, D.F. 06140
September 2, 2011
Mr. Roberto Chapur, President
Palace Resorts, Inc.
8725 NW 18th Terrace. Suite 301
Miami, Florida 33172
Dear Mr. Chapur, Mr. Maduro and Palace Resorts Member Services
I am writing this letter to relay to you my experiences at the Palace Resorts in Cancun, where we were guests from August 1 to August 7 and to request cancellation of my contract and refund of monies deposited.
We arrived Cancun on July 30, it was already 6PM, we had been up since 3AM (bad flight connections), tired and hungry. We were pulled aside at the airport by Hugo, who we believed to be with the Cancun Visitors Bureau, who proceeded to guide us to a standup table, under the pretense that he was to confirm our printed transportation reservation, which we had booked from home. He advised us to sign the billet and then launched off into asking us about our vacation plans. We listened to him but initially were not interested in making any plans until our traveling companions arrived the next day, however, persistent Hugo said that we would not be able to take advantage of his deals once we left the airport building as he said they were not allowed outside, a federal building. Long story short, we yielded and purchased $150.00 worth of reduced price tickets in exchange for a presentation at the Cancun Palace.
The next day, we met for breakfast with Rodolfo Navarette at the Cancun Palace, took a quick tour of two rooms and then proceeded to the sales den. It seemed rather innocuous at first but then a speaker would speak. We were “shushed” and not permitted to continue our discussion until the new member introductions were made.
We were shown the glossy brochures of the various Palace resort and then given the introduction of the two levels of membership, imperial weeks, and an incentive round-trip. The entire concept of membership just did not align with our idea of what we were interested in. As we were about to leave, Rodolfo then introduced the idea that, while the “equity trade” or timeshare transfer program was no longer an option, he could ask his superior to do that for us—but he would only would ask his superior if we were in fact going to go ahead with it. We considered it and after some further calculations, we said we were not interested and were getting ready to leave. By now we were approximately two hours into the sales presentation.
We simply weren’t interested because it just didn’t make sense to outlay a significant amount of money ($19,000) and still have to pay for the use weeks. Rodolfo explained that the preferential rates for members, of course, were significantly lower than what nonmembers would pay. This point was driven several times as I questioned the value of membership. At some point, then, Ulises Gonzalez took over the presentation and indicated that he could make our investment even more valuable by increasing the amount of our timeshare trade-in. Now we have been contacted by Palace Resorts and being offered the opportunity to “buy back” our timeshares for close to $2,000 USD, which transaction, as stated earlier is absent from the body of the main contract.
For reasons, I now seriously regret, we agreed to the purchase of Palace Resort Membership—depositing $9500 of the purchase amount plus $690 in administrative fees on my credit card and paying the balance of $9500 over 48 months. Overall, we were at this presentation from 8:30 through 2:00 PM. We didn’t even have lunch.
Since we left Cancun, we have been researching the value of the membership investment and it is simply not as promised. The savings we were told we would have because of membership was just not so. Opportunities abound for nonmembers to purchase all inclusive vacations at Palace Resort properties at or below the printed preferential rate sheet provided to us. Additionally, we have grave concerns about the timeshare trade-in that formed the basis for our reduced price. First, the trade-in is not even detailed in the body of the membership contract. This omission was not apparent as it was mentioned in an exhibit sheet that was initialed by my wife and I but had no acknowledgement from Palace Resorts. Further research with others transacting with Palace Resorts who have been promised transfer of their timeshares-- never took place, leaving them with collection agencies after them for maintenance fees on what they thought was transferred property.
Additionally, while we were reviewing the contract documentation provided to us, there was nothing advising us of right to cancel our contract within five days—nor were we advised orally of this right. Had we been so advised, we would most likely be in this predicament. I perused the Federal Consumer Office (PROFECO) website, which advises that we should have been advised of our right to cancel and further, that said contract document should display the PROFECO registration number, which is notably absent from the documents given to us.
While our incentive stay at the Palace Resort (Moon Palace) was superb—the staff at every turn was courteous and friendly, our experience from the aggressive sales process starting from the misrepresentation at the airport to the Cancun Palace has left us with distinctively adverse feelings. If the membership program were truly an investment to behold, then such aggressive stout sales tactics would be unnecessary. Unfortunately our realization after research these past several weeks that the representations of this being a sound investment are just not supported have racked us with stress and disbelief that we were treated in such a manner. We have lost sleep and our peace of mind.
Therefore, we are writing to request the cancellation of our membership and the return of our deposit of $9,500.00 USD and administrative fees of $690.00 USD, as well as the cancellation of all further charges for our membership. We have dealt with your company in good faith, with open minds and trust in your representations. Please do right by us and it is our sincere hope that as a leading resort and hospitality company in Mexico, that you will do the right thing and cancel this membership now.
Kindly acknowledge receipt of this letter and outline for us the next step to be taken to complete cancellation of our membership, and the refund of our deposit and fees.
Sincerely,
Jose and Dynnah Tauro
CC:
Mr. Frank Maduro
VP Marketing
Palace Resorts, Inc.
8725 NW 18th Terrace. Suite 301
Miami, Florida 33172
Profeco
Sede nacional de la Procuraduría Federal del Consumidor.
Ave. José Vasconcelos 208 Col. Condesa,
Del. Cuauhtémoc, México, D.F. 06140
Comments
Good luck with your casew
dont stop fighitng there is always a way out..
here is another blacklist of complaints for Palace Resorts..
http://www.timesharescam.com/timeshare-scam-mexico/palace-resorts-timeshare-13
We have been members for over a decade. Palace lowered their fees so drastically that our reduced fees are more than for the general public. Shame on them.
I learned this: Shared-times and vacation clubs in Mexico are regulated by the federal law of consumer protection and a Mexican law that regulates the services they provide. These are:
Ley Federal de Protección al Consumidor and NORMA Oficial Mexicana NOM-029-SCFI-2010, Prácticas comerciales-Requisitos informativos para la prestación del servicio de tiempo compartido.
Two important points in which I am basing my request of cancellation:
1) The law requires that the resort registers the contract in PROFECO (the equivalent of the BBB). Palace did not register its contracts.
2) The contract has to include a clause stating the number of days you have to cancel without penalty fees. It must be at least 5 working days. At least!!. It could be 10, 20, 100 days. My contract did not specify this.
3) There has to be a clause that specifies the condition for canceling the contract and the penalties for both sides at any time. Say, Palace decides to stop its time sharing business, what do you get back? Or if you cancel after 5 years, what fees are you suppose to pay? As you must have noticed, the contract does not include this clause either.
4) You can send your request for canceling the contract via certified mail or express mail (DHL, FEDEX) etc. The law allows for this. The cancelation date will be the date the letter was sent not when it was received.
5) You are entitled to 100% of the downpayment and must be received within 15 working days of the date of cancellation. Here it gets tricky, since the contract did not include item 2) mentioned above.
Hope this helps
It was our first experience of timeshare presentation at Las Vegas. We attended the presentation and the the presenter reduced the price from 50000USD to 14000USD for one fixed week free to stay at Las Vegas. We bought the offer and signed the contract. But that night we lost sleep and peace of mind as I charged I guess some 9000USD on my credit card. We lost all our vacation mood. But nex day we approached one of the agents again and asked her about cancellation policy. But did not tell her that we had bought already. She told us about the policy and we approached back to the sales representative. We told him some reason and asked them to cancel the contract and they did. At the same time they offered me for 5500USD timeshare right outside Disney Parks in Orlando. But we had made a decision not to buy. So as mentioned here in the posts you can cancel the contract within 2,3 or 5 days. Just use your own judgement in terms of approaching the agent to cancel the contract. But the best way not to fall for such temptations and simply ignore them and enjoy your vacation.:-)
Good luck to you all in getting all your issues resolved. But this is a good lesson for future vacations.