Timeshare Scams

Top 5 Travel Scams

Scams are all around us and unfortunately, travel scams tend to be near the top of the heap. It seems that for every legitimate travel offer there is one that isn’t.

According to the National Fraud Information Center, the average loss to fraud in 2004 was $803 per incident — up from $468 two years before. While travel is not at the top of the fraud list (that is reserved for online auctions), it is number two in frequency of complaints. Be sure to steer clear of the folks who are only out to separate you from your travel money.

Don’t be a victim of these 5 top travel scams.

1. Discount travel clubs. Usually a bad idea. If your travel club is asking for more than a few dollars for membership, they are probably scamming you. They will offer a discounted menu of trips (of course it is discounted — they said so didn’t they?), only available to members. For this membership, you get the privilege of booking the trip, probably a substandard product and a newsletter. They get your money plus the commission paid by the travel supplier. It’s a great asset to anyone’s cash flow. Travel clubs should be geared towards social engagement and any dues or membership paid should be reasonable and cover only the true costs.

2. Become a travel agent. This is a scam that is running rampant now. Once you pay a fee to a company, it will issue “credentials” allowing you access to travel agent freebies and discounts and commissions on selling travel. First off, the days of freebies and discounts are done — trust me, they are few and far between. Secondly, in order to sell travel and be recognized by a supplier, you need to be affiliated with either a travel agency or be registered as an independent seller of travel with either the Cruise Lines International Association or the Airlines Reporting Corporation. Believe me, this is a perfect example of the old axiom, “if it seems too good to be true, it probably is.”

3. Deceptive pricing. Know the real price. Know the final price. Look at any major airline ad and you will see their too good to be true fares. The problem is the fine print. The ads are for a one way fare based on round trip purchases. Presto, your cost has doubled. It seems the airlines are more adept at creative pricing than flying their own planes. From frequent flier redemption to unavailable seats, to bogus two-for-one offers, they know all the tricks. But be careful, while the airlines are masters of this scam, they do not have a patent on the practice. Be sure you read all of the fine print before you hand over the credit card or click on the “buy” button.

4. Timeshares. People marketing timeshares are slick. They are not afraid to lie, cheat, or steal to make a sale. Most timeshare offers are made while you are already on vacation and your guard is down, but many are from contest entry forms where you fill out a form while waiting for your Chinese take-out. Very simply, never agree to a meeting or a presentation. Ask that any information be sent to you. Once in a presentation, you have put yourself in physical and fiscal danger. A client of ours just returned from Mexico where he thought he agreed to extend his stay to try out a timeshare. When he returned, he found that his credit card had been charged $37,000 and he was a proud new owner of a timeshare — Spanish contracts tend to be confusing if you are not fluent in the language.

5. Out of business. If you want to make a donation, do it to a charity for Tsunami Aid and not some corrupt or failing business. Cruise lines, tour operators, airlines, and yes, even travel agencies, have all gone under and left the consumer holding the bag.

While life offers no guarantees, you can hedge your bets a little.

Check out the company. Are they members of a professional organization such as the American Society of Travel Agents, Association of Retail Travel Agents, or the Cruise Lines International Association? Do they belong to a local Chamber of Commerce? These are all indicative of someone who is serious about doing business with you.

How long have they been around? Question the experience and tenure of the employees. Are there any complaints with the Better Business Bureau? Don’t pay with cash or checks. Remember, just because someone says they have the best deal, does not mean it is so. Anyone can open an online store in less than ten minutes for less than $200? It will take less time than that to recoup the investment tenfold.

Do your due diligence. ASTA’s consumer site, TravelSense offers more tips for keeping your travel purchases safe from the con artists. If you suspect you have been a victim of travel fraud, notify ASTA’s consumer affairs office, or call the National Fraud Information Center’s hotline at (800) 876-7060, and check with your local law enforcement agencies to see if they can help you.

Deceptive Timeshare, Campground And Travel Club Sales

You receive mailings and calls encouraging you to attend a sales presentation for a travel club membership. You are promised "guaranteed lowest price" travel along with large savings and rebates on travel arrangements if you purchase a timeshare. Membership in the club is said to also include access to vacation condos at a reduced rate and special packaged trips and/or cruises.

To get you to buy a timeshare, costing $1995 to $4995, plus annual dues of up to $200, they promise exaggerated savings, and state that the Attorney General controls their sales methods by (1) requiring them to sell only a limited number of memberships, (2) offering for sale only certain packages for certain prices, and (3) requiring "one day only" prices.

Even though they say the sales presentation will last only about sixty minutes yours exceeds three hours in length during which time they state;

*the travel club membership can be canceled at any time even though the contract states it is non-cancelable and non-refundable;
*that it's in your best interest to sign an excessively one-sided contract giving them the option to cancel, create or change conditions without your approval or a corresponding right to cancel;
*you are to get a five percent rebate on all travel booked through Vacations Outlet, when in fact, the rebates only apply to certain types of travel;
*you are to get free airline tickets for attending the presentation but fail to say they require a seven to ten night hotel stay at your expense; and
*that they are a member of various tour operator and travel agency associations, when, in fact, they are not.

They fail to: make requested travel arrangements; obtain the lowest price; honor their cancellation policy; deliver on promises that you would save thousands of dollars in airfare and other travel expenses; or disclose that flights will be canceled unless 50% of each charter flight is booked in advance.

In addition to making false promises, they use "free prize" offers to lure people to attend the sales presentations and fail to give refunds within the required cancellation period. To take advantage of these so-called savings, you would have to constantly be on the go as your membership fees are more than what you would spend in a year for travel.

Time-share firms Settle With Vermont Attorney General

Two developers of time-share lodging have agreed to pay $25,000 toward affordable housing and change their marketing practices to settle claims by the Attorney General's Office that they were violating the state's consumer fraud act.

Attorney General William Sorrell said the two timeshare companies and two marketing companies failed to tell consumers that they were being solicited to take tours of timeshare developments. The companies also allegedly misrepresented the purpose of the tours, misrepresented vacation package incentives as complimentary and placed a maximum age on the promotions.

A settlement between the state and the companies was filed Wednesday in Washington Superior Court. It involved North Star Lodge Limited Partnership of West Bridgewater, The Summit at Bolton Valley LLC of Waitsfield, Sage Marketing Group Inc. of South Burlington, and C&S Marketing Inc. of West Bridgewater.

The attorney general claimed that Sage contacted consumers inside and outside Vermont in 2003 and 2004 through telemarketing and at least 90,000 postcards, inviting them to attend timeshare sales presentations at North Star and Summit at Bolton. Vacation packages were used as incentives.

Summit at Bolton contracted directly with Sage. C&S contracted to do North Star's marketing and then subcontracted with Sage.

Vermont law requires explicit disclosures in written and verbal offers of vacation packages when a timeshare tour is involved.

Sage's telephone scripts misstated the purpose of the contracts as promoting tourism, when the real purpose was to sell timeshares, Sorrell said. The company also violated state law in claiming the packages were free or complimentary because guests were required to pay such things as a $50 deposit, hotel taxes and "seasonal surcharges."

Sorrell's claim also said that most of the timeshare promotions by Sage included a maximum permitted age of 65 or 68. Vermont's fair housing act prohibits any age qualifications to negotiate real estate sales.

Because it was difficult to identify individual consumers who might have been involved, the companies were required to pay $20,000 to the Vermont Housing and Conservation Board to support affordable housing and $5,000 to the state to reimburse the costs of the investigation.

TIMESHARE SCAMS AND SHONKY DEALS

The following information has been compiled from reputable sources in New Zealand, Australia, Europe and the USA and is freely available on the Internet.



Timeshare seems to attract more than its fair share of scam merchants. They come up with some plausible ideas for transferring money from your pocket to theirs. During our years in timeshare we've seen a few come and go, some more than once.

CURRENT SCAMS:

"We have a buyer in England waiting now to pay $16,000 for your timeshare".
"NZ and Australian timeshare sells in the UK for as much as 20,000 English Pounds"
No such luck I'm afraid. This is the "catch cry" from companies whose only goal is to extract from you a listing fee. There is an international standard on resale timeshare pricing. Ask for a copy of our Timeshare Resales Valuation guide available from the address above.

Unfortunately, there is almost NO CHANCE of New Zealand or Australian timeshare selling in England so:

ANYONE SAYING THOSE WORDS MAY BE SETTING YOU UP FOR A SCAM

We have reports and complaints about companies operating out of Australia, one even with an Auckland telephone number, that are "promising" to sell NZ and Australian timeshare in England for unusually high prices. The listing fee is approximately $NZ500.00.

OUR ADVICE IS TO BE SUSPICIOUS OF ANYONE WHO PROMISES TO GET YOU A HIGH FIGURE FOR YOUR TIMESHARE WEEK!

Ernie Uncovers Timeshare Scam

Media personality Ernie Dingo is to become the new face of a growing Gold Coast-based timeshare company.

The well-known identity has signed a two-year deal with Accor Premiere Vacation Club to encourage Australians to consider timeshare as a holiday option and warn of timeshare scams.

The deal with Dingo comes as APVC readies to expand its sales offices and develop resorts in Asia and New Zealand.

APVC has increased its investment in the tourism and leisure industry in 2005 to $71 million.

APVC chief operating officer Jim Sabot said the company's management and staff were excited to have secured Dingo as its ambassador.

"Publicly, Ernie is an Australian icon who reminds us all of the importance of holidays," said Mr Sabot. "He is a passionate, deeply principled family man and a joy to work with.

"Ernie's involvement with APVC marks another milestone in the acceptance of our product as a highly desirable holiday alternative for Australia, and soon, the Asia Pacific region."

The multi-award-winning Dingo appears on the weekly television series The Great Outdoors, has starred in movies and TV shows, has presented special features and has appeared in live theatre productions.

He has been awarded the Order of Australia and in 1997, was voted a National Living Treasure in a poll conducted by the National Trust. In 1994, Ernie was voted 'Aboriginal of the Year' by the National Aborigines and Islanders Day Observance

Committee).

"In choosing a corporate ambassador for APVC we had what we thought was an impossible wishlist: a high-profile Australian icon, strong principles and family values, close association with holidays and travel, and a sense of humour and fun that would complement the company's culture," said Mr Sabot.

"When Ernie agreed to join our team and bust timeshare scams we got it all. Ernie epitomises the APVC experience and his participation is a milestone for us as we become the preferred way to holiday for so many Australians."

APVC is a joint venture between international hotel operator Accor Asia Pacific and property developer Becton Corporation. It has been operating in Australia since 2000 and has more than 11,000 members.

Timeshare Telemarketers Settle Do Not Call Charges

Two timeshare sellers and their telemarketer will pay more than $500,000 to settle Federal Trade Commission charges that they violated the Do Not Call Rule by calling thousands of consumers who placed their phone numbers on the FTC's Do Not Call Registry. The Registry currently contains more than 85 million numbers.

Under the settlement, the timeshare sellers are barred from violating the Do Not Call Registry in the future. Two individuals who own the telemarketing company that made calls for the timeshare sellers are banned from owning or controlling any telemarketing operation in the future.

"You cannot hire subcontractors to break the law for you and then walk away free of consequences," said FTC Chairman Deborah Platt Majoras. "Millions of Americans have indicated that they do not want telemarketers calling them, and we intend to enforce the law that gives them the right to make that choice."

In August 2004, the FTC charged that Braglia Marketing Group (BMG) and its owners, Frank and Kate Braglia, unlawfully called hundreds of thousands of consumers who had placed their numbers on the Registry, and that they had not paid the Registry access fee for some of the area codes they called.

They also allegedly abandoned calls to consumers. Under the FTC's Telemarketing Sales Rule (TSR), a call is "abandoned" if the seller or telemarketer fails to connect the consumer with a live sales agent within two seconds after the consumer answers the phone, resulting in "dead air."

According to the FTC's complaint, BMG made calls on behalf of the two timeshare and vacation properties in Atlantic City, New Jersey - Flagship Resort and Atlantic Palace. The FTC sought civil penalties and a permanent order prohibiting BMG and the Braglias from violating the law.

After further investigation, the FTC filed a second lawsuit charging Flagship Resort and Atlantic Palace with hiring BMG to telemarket their timeshares, and that while calling on their behalf, BMG violated federal law by calling registered numbers.

The complaint further charges that Flagship Resort itself called consumers who were protected by the Registry. The FTC's complaint also charges that the defendants abandoned calls to consumers and failed to pay required fees to access the Registry.

Timeshare Fraud Leads To Prison

A Gilbert man convicted of defrauding time-share owners was sentenced Wednesday to more than eight years in prison for bilking about 2,000 victims.

Ingo Melvin Rewald, 51, was ordered to serve the prison time by U.S. District Judge Frederick Martone after pleading guilty in April to mail fraud, according to federal prosecutors.

Rewald admitted that from 1998 to 2003 he operated three companies - Aventure-Time-Marketing, TimeShares-R-US and Condos-R-US - in connection with the scam.

Using an assumed name, Rewald contacted victims and told them he would connect them with a buyer for their time shares in return for a $395 finder's fee. There were no buyers, and he collected the funds via postal boxes.

For sentencing purposes, the judge ruled that Rewald had taken in up to $1 million. The defendant was ordered to pay $264,412 and serve three years of probation.

Timeshare Spammer Pleads Guilty

A Florida man known as the "Timeshare Spammer" has pled guilty to violating the US CAN-SPAM Act. Peter Moshou, who was alleged to have sent millions of unsolicited e-mails offering to help people sell their timeshare properties, entered the plea Thursday in U.S. District Court for the District of Northern Georgia, according to Earthlink, which has launched a civil lawsuit against the spammer.

Moshou is among the first to be convicted under the federal law, known as the Controlling the Assault of Non-Solictied Pornography and Marketing Act, said Alexandra Trask, an Earthlink spokeswoman. He now faces sentencing by the Court, she said.

Under the law, Moshou could face jail time or possibly millions of dollars in fines, which can be assessed at up to US$250 per unsolicited email.

Earthlink is also seeking unspecified financial damages from Moshou, who was sued by the Atlanta Internet service provider in January. In addition to the CAN-SPAM violations, Earthlink's lawsuit also charges him racketeering and Computer Fraud and Abuse Act violations, the company said in a statement.

Timeshares: Take Your Time Before Signing On Dotted Line

QUESTION: While vacationing last December in Cancún, my partner and I were bombarded by time-share sellers. They promised free meals and tours for attending a "short presentation." We finally agreed to hear what Krystal Cancún had to offer.

The sales rep put on an impressive show. When I balked at the $29,900 asking price for a 26-week timeshare, the rep came back with a deal at less than half the cost, $12,500, which included a way for us to resell unused weeks. He also offered us membership in an exclusive discount travel club — a big selling point because we travel frequently. I signed on the dotted line.

Later, I reviewed the contract against my written notes and noticed that it did not include all the benefits that were verbally promised. And some of the discounts that were offered came with different restrictions than what was explained. I went back to Krystal the next day and got a bunch of excuses. When I asked for a refund, they offered to reduce the price even more.

The red flags were now up. I returned to my hotel and faxed a letter to Krystal canceling the agreement. At the same time, I filed a dispute of the charges with Citibank Mastercard.

It has been several months. Krystal denied my request for a refund, saying that I waived my right to a five-day cooling-off period in exchange for a "special deal." Citibank continues to send me a variety of computer-generated letters, one of which dismissed my request because the purchase was made outside the country.

I thought I was doing everything right, but things seem to be going very wrong. What happened?

Answer: Like many travelers south of the border, our reader was seduced by a salesman offering a slice of paradise. He should have walked away. Instead, Rohde signed on the dotted line — and took home an expensive souvenir.

It's easy to understand why people get snagged. Mexican resorts are crawling with time-share wranglers hawking deals at gleaming pleasure palaces.

"Their properties are beautiful. Your mouth just drops," said Vernon Penner, a Phoenix-based attorney who represents U.S. consumers in Mexican timeshare disputes "Most people think, 'Hey, I can get in on the ground floor.' It's a common mistake."

Increasingly, U.S. consumers are falling into the hands of operators who use high-pressure practices to close the sale. These tactics can include promises of free or deeply discounted vacations and failure to disclose all the costs of the deal.

As a result, complaints about Mexican timeshares from foreign visitors were up 23% (to 428) in 2004 from the previous year, according to Profeco, the Mexican consumer-protection agency, based in Mexico City. At the same time, websites such as the Timeshare Users Group, http://www.tug2.net , are buzzing with discussion from travelers.

One of the problems they report is the "cooling-off waiver."

Under Mexican law, buyers have five working days to cancel a timeshare contract without penalty. It's similar to California law, which allows three calendar days to back out of a timeshare purchase.

But some timeshare operators reportedly ask would-be owners to sign a release waiving that right, which is "illegal, an outright lie and a misrepresentation," said Eileen Harrington, director of the marketing practices division, U.S. Federal Trade Commission.

"It's a fraud that started with one timeshare company and is now rampant throughout Mexico," said Andrea Hackman, editor of the Timeshare Beat, an industry website and newsletter, http://www.timesharebeat.com .

Rohde apparently was one who got tangled in the waiver dispute. To qualify for a special deal at Krystal, he was asked to sign the waiver.

The catch is, most buyers don't review timeshare contracts until they return home and then it's too late; the cooling-off period has expired.

"Timeshare operators bank on that," said Gail Kaufman, a timeshare owner who had a waiver problem and runs the website http://www.mexicantimesharefraud.com .

Because a copy of the signed waiver is rarely included in the documents new buyers take home, it's tough to make a case for a refund with the timeshare or credit card company.

"No one ever gets a copy," said Kaufman, who added that she receives about 10 complaints a month about waivers. "It comes down to 'he said, she said.' "

Rohde thought he was safe; he filed a dispute with Krystal and Citibank within five days. But after months of calls and letters, he still came up empty-handed.

At Citibank, Rohde's dispute apparently had fallen into a bureaucratic black hole.

The claim should never have been denied for making an out-of-country purchase, said Janis Tarter, a bank representative. "We sent him the wrong letter," she said. "That's what held up his investigation."

After our call, Citibank issued Rohde a provisional credit for the price of his timeshare. When asked about the chances that credit would actually go through, Tarter responded, "We have no reason to believe that the merchant bank won't refund the money, based on the documentation Rohde provided."

Because his refund was not assured, we filed a complaint on Rohde's behalf with Profeco. The agency claims a high success rate at negotiating refunds for timeshare complainants.

Last year, Profeco recovered $2.1 million in timeshare funds, more than twice the amount it collected the previous year. The service is free, but it can take up to four months to get a refund. And it's not always guaranteed.

Profeco "can call a timeshare company to the table but can't force them to accept a deal," said attorney Penner, explaining that the agency offers conciliation services, not arbitration or litigation.

The outcome is based strictly on the timeshare contract.

"If a consumer cancels within five days, we usually can get all their money back," said Martha Carrillo, who heads the division handling foreigners' complaints. "But we can't guarantee anything."

To avoid getting caught in timeshare trouble:

Just say no. Don't let timeshare sharks get a nibble. A free breakfast is not worth the cost and aggravation of making a bad financial decision. "Most of the timeshare disputes we handle are a case of buyer's remorse," said Citibank's Tarter. If you're truly set on buying a timeshare, do it at home, on your own timetable.

Slow the pace. Too many buyers sign without understanding the terms of the agreement — or making sure all verbal promises are in writing. Take the contract back to your hotel to review.

File disputes and get proof. You can change your mind, no matter what you've signed. But do it quickly. Send certified letters to the timeshare operator, your credit card company and Profeco while you're still on vacation.

"For Profeco to help the buyer, the buyer must help Profeco," advised attorney Penner, "and the more means of showing intent to cancel the better." He also urged consumers to get the letters notarized in Mexico: "It's the best way to prove that you canceled within five days."

Ask others for help. At the website http://www.mexicantimesharefraud.com , as well as Mescam (www.sws-llc.com/mescam) and Timeshare Users Group, you'll find people who fought the refund battle and won, even outside the five-day grace period. The sites are rich with facts, information, timeshare company complaints, sample cancellation letters and more. They'll even help get your money back.

Alert authorities. Although the tactics of timeshare sellers are similar to those in this country, "there's no protection from the U.S. government," said the FTC's Harrington. "You'll have to deal with Mexican consumer-protection and law-enforcement authorities." Profeco has been working closely with the FTC and the U.S. Embassy to resolve consumer complaints and has set up permanent help desks at airports, beaches and bus stations throughout Mexico.

Aggrieved consumers can file gripes on the spot or contact Profeco through its website, http://www.profeco.gob.mx . (Click the link called "Attention to Foreigners.") Also, register your complaint with http://www.econsumer.gov , a joint effort of 13 countries to address cross-border fraud.

Missed the deadline? Don't give up. Some timeshare contracts allow buyers to cancel outside the five-day period and still get a refund, minus a penalty. Worst case, Profeco says it can get some type of compensation for owners, even if it's a certificate for a free vacation, airline discounts or extra timeshare weeks. "We won't close a case until the consumer has the certificates in hand," Carrillo said.

2 Arrested In Timeshare Sales Scam

Martin Kane got the first call in 2000.

Recently diagnosed with cancer, he wanted to unload his timeshare property in Myrtle Beach to pay mounting medical bills.

Then, out of the blue a man from a company called Timeshares xxxxxxxx phoned offering to link him with a buyer. All Kane had to do was pay a $300 processing fee. When the sale was completed, he would get the money back along with the proceeds.

"We were in pretty bad shape at that time," said Kane, 69, of Shelby, N.C. "I sent him the money he requested, like a dummy."

He still is trying to find a buyer.

There are legitimate companies that help people sell their time shares. But Timeshares xxxxxxxxx wasn't one of them. Kane never got his money back.

Apparently he wasn't alone. Authorities say two local men, Jeremiah C. Peyton and Andre D. Bustamante, scammed at least 1,150 people around the country out of an estimated $350,000.

Following an investigation by the Hillsborough County Consumer Protection Agency, the state Attorney General's Office has arrested Peyton, 26, of Tampa, and Bustamante, 24, of Temple Terrace. They face first-degree grand theft and money laundering charges. Peyton already was in the Citrus County jail on federal drug charges.

Temple Terrace police arrested Bustamante at his father's home. He is being held in the Hillsborough County Jail on $100,000 bail.

The two men face up to 60 years in prison if convicted, Assistant Attorney General Mark Campbell said.

The ruse continued for years, but in 2003 complaints started trickling in, said Rob Robillard, an investigator with the Hillsborough County Consumer Protection Agency. The pair worked from at least two locations in Hillsborough County, targeting out-of-state victims they found through listings for time share owners, he said.

The scam involved an ever-changing array of companies - none of them legally registered in Florida, Robillard said.

Many people are eager to unload their time shares because they are too old to travel or, like Kane, have bills to pay. After people sent their service fees - anywhere from $299 to about $350 - they called to find out about the sale only to get excuses or find the phone disconnected. Their money had been transferred to bank accounts set up in other people's names around the country, Robillard said.

Authorities think they know at least two of the locations where the scam operated.

Peyton's home on Vista Point Drive in Tampa may have been the most recent one. They may also have worked out of The Marquis apartment complex off Bruce B. Downs in New Tampa where Peyton once lived, Robillard said.

The investigation is ongoing, and more arrests are "very possible," he said.

Kane is glad for the arrests, but it doesn't ease the sting of his loss. He said he got another unsolicited call, and this time he asked for a written contract before sending in a $325 fee. After that, nothing happened. He has told investigators about this episode as well. His cancer is now in remission, and Kane finally believes he's found a legitimate company to sell the time share. He's asking $11,500. It can't happen too soon.

"I'd take $8,000 if I can get it," he said. "I need to pay some bills."

Woman Says Internet Company Failed To Sell Timeshare

Christina Richardson decided to sell her family's timeshare condo in Myrtle Beach using an Internet company. When the condo didn't sell, Richardson claims, the company failed to keep promises and she says she wants her money back.

Richardson paid Resorts International Unlimited $685 upfront to promote the sale of her timeshare for 180 days. But she says they never received any offers from buyers through the company.

Richardson said they were also promised airline vouchers from Resorts International Unlimited if their timeshare didn't sell within 180 days. She said she talked to several people at the company to try to get the vouchers.

"I asked them about the airline vouchers and he said he would send them out. (I) never received them. Two months went by, I called again and spoke with a different person and she said she would get the airline vouchers out," said Richardson.

But still the vouchers never came. Action 9 got in touch with the Florida-based company. A representative denied they ever promised to sell Richardson's timeshare.

"We make it very clear that when we start to do the advertisement that we're not a real estate agent and not a broker. We are strictly an advertising company and it clearly states on her contract that the marketing fee that she paid is for marketing expenses," said a company representative.

Resorts International Unlimited made the decision to refund Richardson's $685 advertising fee.

If a company approaches you about reselling your timeshare, don't agree to anything over the phone. Ask for written materials. Is the company promising to sell your timeshare or just advertise it? Find out before you pay any money upfront.

Krystal Cancun Timeshare Fraud

We arrived in Cancun, Mexico August 8, 2005 on vacation and attended a timeshare sales presentation on Saturday, the 9th at the Krystal Cancun Hotel in Cancun Mexico. After listening to the presentation, we were offered a timeshare package with a price of $14,900, which we informed the sales man was not in our budget. He then walked away and returned with a sheet of paper in which he claimed were timeshare foreclosures. He then offered us a timeshare package with a Price of $11,090 and then explained to us how good of an investment this would be. My wife and I were told that we could rent five of our 13 “Power Weeks” (Holiday weeks) for $3,150 per week per year minus maintenance fees and five regular weeks per year for $5,600. That was a total of $18,675, in which we were told we would receive on November 9th (90 days later). Then on January 1st, we were to receive another check for $18,675 and so on for the next five years until our weeks were all sold. We were told that a broker named Vacation Network Advertising Corporation would rent our vacations and that companies such as American Airlines would be eager to purchase our vacations due the amount of money American Airlines could profit. He also explained that Krystal could not rent the vacations directly to American Airlines because of legalities. The sales representative then encouraged us not to use any of our weeks but to rent them all and use either I.C.E or RCI for our vacationing arrangements. When we finally agreed to the offer, we were told that this deal was only good for today and that we had to sign a form witch waived our right to a five-day cooling off period in order to receive this “special deal”. At the time we did not think much about it, we signed it and proceeded to pay for the timeshare. Mysteriously the 5 day cancellation form giving up our right to rescind the agreement was NOT included in our packet.
After returning to our Hotel, my wife felt doubt about the timeshare purchase and felt that we should cancel it while still in Cancun. I then reminded her that we signed a waiver in which we gave up our right to cancel. Even though I was feeling my own doubts, I believed that we could not cancel because of the waiver. We decided that our only option was to look forward to the rental of our weeks. Almost 2 years have now past and not one of our vacations have rented, even after we lowered the price of our “Power weeks” by more than a $1000.

After finally conducting research on the Krystal Cancun timeshare we found that not only has the Krystal run the same scam on others but they are using same sales pitch that was given to us even though they know that none of the vacation weeks are renting at the price that they claim they will rent for. I have spoken to people that have fallen for the same fraudulent practices as recently as October 2005. Also, there are Mexican laws in place to protect any timeshare purchase by granting a 5-day cancellation period. What Krystal Cancun stated was ILLEGAL and blatantly against the law!

I have tried to contact the Krystal Cancun by email and by phone concerning a maintenance fee payment and the issue of my timeshare weeks not renting. I was given multiple excuses as to why the vacations were not renting and other times I did not receive a reply at all. Only when I threaten to report them to the Mexican Federal Government Agency "PROFECO” did they reply to one of my emails. I then received a call from one of their employees who informed me that I did have to pay a maintenance fee for a week that I did not use. I informed her that I did not use the week because I was told during the sell that I would have no problem renting the week. She then offered me a RCI voucher for the week and offered to get me information on another Vacation Broker that would buy my weeks. I received the voucher but never received the information on the Vacation Broker. I've also requested a full refund and all they have done is try to convince me that none of this happened even though they know that I have spoken to other people who went through the same ordeal with them.

Millionaire Timeshare Fraudster Made Bankrupt

There is good news for the victims of notorious timeshare fraudster, John 'Goldfinger' Palmer. The convicted fraudster has been made bankrupt at a hearing in the Bankruptcy Division of the High Court. Palmer is still in prison but hoping for parole in late 2005.

The bankruptcy proceedings are the result of civil claims made by over 350 people for compensation from Palmer for the sums they have lost. Mr Palmer owes his victims in excess of £5.5 million. Trustees appointed by the victims will now raise this money from Palmer's assets to pay the compensation claims.

The victims obtained judgement against Palmer in February 2004 and started bankruptcy proceedings against him in August 2004. He was forced to disclose to the Claimants details of his worldwide assets. Palmer repeatedly convinced the court to postpone his bankruptcy petition, claiming he was trying to sell his timeshare assets in Tenerife. His delaying tactics are finally over.

Jonathan Wheeler, partner at the London office of law firm Irwin Mitchell represents the victims. He says: "This is a major achievement. Our clients took the brave step of pursuing Mr Palmer through civil proceedings when they realised that the criminal justice system was not going to help them. Their determination has been rewarded by the bankruptcy order and we can get on with selling the timeshare resorts and other assets to pay the compensation due to our clients."