Bought into a vacation club and missed the 5 day window

[victoriakathleen]

My husband and I have just returned from Playa del Carmen where we ended up stupidly buying into Leading Vacation Club membership with the Reef 28. We were supplied with drinks and were highly pressured into buying. Major buyers remorse. Completely ruined our trip for my 40th. They wanted 30% down of 17000 which we could not afford so they “loaned us” a portion. I paid 2300 USD but my card was charged at an exuberant exchange rate- came to 3600 Canadian. We will have a monthly payment of 361 USD for 9 months and then 211 payment for the next 54 months. They told us we could cancel anytime, and it was a vacation club, not a timeshare. They said if we cancel we just loose our credits and benefits. Looking over the contract now and I see in order to get out we need to pay 30% + any perks used. Is there anyway out of this without tanking my credit? We can’t afford it. The club comes with 5 weeks a year at their 3 resorts and RCi and they gave us travel credits for airfare. These credits seem to be a scam. They sold us a dream of travelling the word, saying we could sell our weeks and that they could even sell our weeks for a small fee. We have received nothing for what we paid- is there anyone that has advice. Thanks in advance

 

[jp10558]

I think you're stuck if you missed the window to rescind. The loans will tank your credit if you don't pay, well at least your credit card would. International loans are less obvious to me. Maintenance Fees / ongoing fees you can often ignore but loans are credit affecting.

 

[WorldT]

If you think the membership club can provide you the vacation stay at a reasonable price then you may just want to learn how to maximize what you have. If that does not apply, then read on.

You are past the recision period so your down payment is gone. Put that down as lesson learned. You have to pay your credit card bill if you don't want the problems that comes with that.

As for the rest of the "loan", you bought a membership to a club. Stop paying and it will go away. Make sure to cancel your card and specifically block the merchant to prevent future charges. The rest of the "loan" should not affect your credit. Mexican membership clubs are not able to submit information to Canadian credit bureaus. If it somehow manages to slip through, contest it.

Under NO circumstances should you pay any money to anyone who promises to "help" you. If you do, you just wasted more money.

 

[victoriakathleen]

Thanks for your advice. I will pay my credit card off but I just don’t want to pay the rest of the loan. I will cancel my credit card so when they try to take the payments they will not go through. I am worried as the loan company Schmoa is an American company and that they may try to come after me. I’m so broken by this.

 

[T-Dot-Traveller]

Thanks for your advice. I will pay my credit card off but I just don’t want to pay the rest of the loan. I will cancel my credit card so when they try to take the payments they will not go through. I am worried as the loan company Schmoa is an American company and that they may try to come after me. I’m so broken by this.

You are past the recision period so your down payment is gone. Put that down as lesson learned. You have to pay your credit card bill if you don't want the problems that comes with that.

As for the rest of the "loan", you bought a membership to a club. Stop paying and it will go away. Make sure to cancel your card and specifically block the merchant to prevent future charges. The rest of the "loan" should not affect your credit. Mexican membership clubs are not able to submit information to Canadian credit bureaus. If it somehow manages to slip through, contest it.........

Hi @victoriakathleen and welcome to TUG.
Mexico - USA & Canada all have different credit bureau's - so since you are Canadian and Schmoa is American ; this should add a barrier .

Please be aware that a collection agency can try to collect ( ie bully you using fear & threats ) . This does not mean they can report
anything to Canadian Credit Bureaus .

Please be aware that it is not uncommon for " debts " to be sold and resold for pennies on the dollar. If this occurs you might again receive
harassing contact months later from a new slimy source. I would suggest blocking contact.

As @WorldT stated - you will need to address your Canadian Credit Card situation.

 

[WorldT]

I tried looking up Schmoa and I couldn't find them. In any case, if they are American, the same thing I and @T-Dot-Traveller said holds. Someone will call or email you at some point to threaten you. I wouldn't worry about it. I wouldn't even respond at all.

 

[victoriakathleen]

I realize I typo-ed the financing company. It is SCHONAUSA. Seem to only finance resorts. I don’t know if that changes anyone’s thoughts. I have requested a new credit card and blocked the merchant, I do hope they will just take my $3700 (for nothing) and leave me alone.

 

[Passepartout]

I think you are out what you have already paid them. Just pay off the existing card debt as soon as possible. It has been an expensive lesson, but I think your credit is safe. Block any calls, cancel the credit card, and destroy any mail you get from them or a collector.

As bad as this is, you are financially better off than you would have been paying the whole thing off and found that it was a rip-off.

I wish you'd have found us before your Mexican holiday. We'd have happily enlightened you before you made an expensive mistake.

Jim

 

[davidvel]

You can always dispute the charge on your CC, it can't hurt. Say that they got you intoxicated/drugged, and did not have capacity to agree to transaction. I would at least go this route before you pay it off.

 

[TUGBrian]

do you still have access to your contract? is it digital?

 

[victoriakathleen]

Yes I have a copy but not digital

 

[TUGBrian]

thats ok, is it ridiculously long? i was hoping if it was digital it could easily be searched...but with it being written it makes that much harder given how most of them are similar to stereo instructions!

 

[victoriakathleen]

thats ok, is it ridiculously long? i was hoping if it was digital it could easily be searched...but with it being written it makes that much harder given how most of them are similar to stereo instructions!

19 pages! What were we thinking?! Lesson learned

 

[TUGBrian]

well if you get bored and want to read it line for line id be curious if you find the word alcohol in it somewhere....likely somewhere near the disclaimer part of the signature page.

 

[James_Bond007]

My husband and I have just returned from Playa del Carmen where we ended up stupidly buying into Leading Vacation Club membership with the Reef 28. We were supplied with drinks and were highly pressured into buying. Major buyers remorse. Completely ruined our trip for my 40th. They wanted 30% down of 17000 which we could not afford so they “loaned us” a portion. I paid 2300 USD but my card was charged at an exuberant exchange rate- came to 3600 Canadian. We will have a monthly payment of 361 USD for 9 months and then 211 payment for the next 54 months. They told us we could cancel anytime, and it was a vacation club, not a timeshare. They said if we cancel we just loose our credits and benefits. Looking over the contract now and I see in order to get out we need to pay 30% + any perks used. Is there anyway out of this without tanking my credit? We can’t afford it. The club comes with 5 weeks a year at their 3 resorts and RCi and they gave us travel credits for airfare. These credits seem to be a scam. They sold us a dream of travelling the word, saying we could sell our weeks and that they could even sell our weeks for a small fee. We have received nothing for what we paid- is there anyone that has advice. Thanks in advance

Hi, my Wife and I were in Cancun last March, we bought into a trial membership at the resort we were at, $4500 US, we paid $800 down and were supposed to pay $200/Us a mth after 3 mths back from trip, we regretted signing, so when back (way past the 5 day period), I said to myself what the heck, and disputed the charge to my CC company, low and behold I got my downpayment back and since then we haven't been paying the mthly fee, they send us letters and call us once a week (but not lately for some reason) but we ignore them, nothing has shown up on my credit report... If You gave them Your SIN #, that may cause an issue, I did, and I recently had my identity stolen and some stuff happening in that regard, I think it was them from Mexico that may have had something to do with it but who knows... Anyways, try contacting Your CC company to dispute the charge and ignore the emails, letters and phone calls, You should be fine... We are from Canada too!

 

[victoriakathleen]

Just wanted to thank you all for your support and advice! Our credit card determined the charge was not valid and returned our down payment. The company continues to harass and threaten legal action against us. We just hope it doesn’t make it to the Canadian credit bureau but having visa agree it was invalid charge will help us if it comes to that. Thanks again!!! Very grateful I found this site!

 

[TUGBrian]

very happy your card sided with you! I hope that is a new trend for folks in situations like these!

 

[Marianorgl]

Hello everyone, unfortunately my wife and I also fell into this trap and the 5 day cancellation period passed. I have written letters to them requesting the cancellation of the contract due to defects and nullities citing Mexican law. I will send a copy to Profeco and to the Consumer Protection Agency of my country (Argentina). I paid 15% of the contract by card and the financing of the other 15% with interest in order to comply with the 30% down payment... the rest at $0 interest. I received access to the site 7 days after signing the contract (the 5 business days had passed). I looked at the site without clearly understanding it but I continued enjoying my vacation without thinking much about it. A few days ago when I got home we began to review everything and began to understand the magnitude of the signed documents and promissory notes that we cannot afford and furthermore we did not find any benefit in their program. We were lied to throughout the presentation, they omitted information about deadlines. They gave us alcohol. All of this will be recorded in the notes we will present to the various government agencies. We've also canceled the credit card they used to charge the fee. They should collect the first installment of the financing tomorrow.

They have our full names, postal addresses, email addresses, phone numbers, Argentine ID numbers, and this card that we canceled. Based on their experience, what should I expect? I imagine harassment and threats, but will they pursue this legally? I understand that if a payment demand were to arrive in my country, I have documentation to prove that the contract is void due to the seller's reluctance and bad faith. We feel so foolish. I still don't understand how we fell for this without thinking it through. The psychology they used was very effective. Please, I need your opinions. Regards.

 

[Passepartout]

Hello everyone, unfortunately my wife and I also fell into this trap and the 5 day cancellation period passed. I have written letters to them requesting the cancellation of the contract due to defects and nullities citing Mexican law. I will send a copy to Profeco and to the Consumer Protection Agency of my country (Argentina). I paid 15% of the contract by card and the financing of the other 15% with interest in order to comply with the 30% down payment... the rest at $0 interest. I received access to the site 7 days after signing the contract (the 5 business days had passed). I looked at the site without clearly understanding it but I continued enjoying my vacation without thinking much about it. A few days ago when I got home we began to review everything and began to understand the magnitude of the signed documents and promissory notes that we cannot afford and furthermore we did not find any benefit in their program. We were lied to throughout the presentation, they omitted information about deadlines. They gave us alcohol. All of this will be recorded in the notes we will present to the various government agencies. We've also canceled the credit card they used to charge the fee. They should collect the first installment of the financing tomorrow.

They have our full names, postal addresses, email addresses, phone numbers, Argentine ID numbers, and this card that we canceled. Based on their experience, what should I expect? I imagine harassment and threats, but will they pursue this legally? I understand that if a payment demand were to arrive in my country, I have documentation to prove that the contract is void due to the seller's reluctance and bad faith. We feel so foolish. I still don't understand how we fell for this without thinking it through. The psychology they used was very effective. Please, I need your opinions. Regards.

Unfortunately, you've probably lost whatever funds you have paid them. While we have limited experience dealing with other countries' international financial rules, but our experience is that once they've gotten what you have paid them, they will generate some letters and try some phone calls, but in the end, they give up and you will hear no more. I will not affect your travel to Mexico in the future, but stay out of timeshare or vacation club sales rooms.

We are sorry for your loss, but there is little to nothing that you haven't done. Sadly, after the rescission period has passed, there is little that PROFECO can do.

One tactic we have found to have some success is to write all kinds of negative comments about them on social media. They watch the reviews wherever potential buyers might see them, and we have seen some people get refunded if they promise to pull down negative comments. It can't hurt and might help.

Jim

 

[Marianorgl]

Hi Jim, thanks for your reply. What really torments us is the thought that this could have some kind of legal implication and a seizure of my accounts. I understand that starting tomorrow they'll start charging unreasonable interest rates that they'll also want to collect. The exit clause is 30%, but I was scammed in good faith. I refuse to give them another cent. I consider the payment made as a tax on stup***y and learning, but I don't want to waste any more energy on this. I'll heed your suggestion and start giving them a negative rating on all platforms if they keep insisting on collecting. $2,500 is a lot of money for nothing. Let them break up and accept payments. Could anyone have ended the relationship like this, or do they just ignore them until they disappear? They're obviously a group of people organized to scam people behind the facade of the resort. It's a shame, really. I chose them because of the good online reviews, so I see your suggestion as positive. greetings.

 

[Passepartout]

Hi Jim, thanks for your reply. What really torments us is the thought that this could have some kind of legal implication and a seizure of my accounts. I understand that starting tomorrow they'll start charging unreasonable interest rates that they'll also want to collect. The exit clause is 30%, but I was scammed in good faith. I refuse to give them another cent. I consider the payment made as a tax on stup***y and learning, but I don't want to waste any more energy on this. I'll heed your suggestion and start giving them a negative rating on all platforms if they keep insisting on collecting. $2,500 is a lot of money for nothing. Let them break up and accept payments. Could anyone have ended the relationship like this, or do they just ignore them until they disappear? They're obviously a group of people organized to scam people behind the facade of the resort. It's a shame, really. I chose them because of the good online reviews, so I see your suggestion as positive. greetings.

I really think it's highly doubtful that they will 'do any 'seizure of accounts'. There is just not enough money in it for mounting an international legal fight. Most likely they will bluster and threaten by mail and phone. No worries that an 'enforcer' will show up at your door to collect. No, they will simply go after what you will give them. I'd cancel ant credit cards they might have access to, and demand (in writing) that ALL correspondence in this matter be by mail. Then simply dispose of those. Over time they will stop when they come to the realization that they are not getting any more.

Good Luck!

Jim

 

[Marianorgl]

I really think it's highly doubtful that they will 'do any 'seizure of accounts'. There is just not enough money in it for mounting an international legal fight. Most likely they will bluster and threaten by mail and phone. No worries that an 'enforcer' will show up at your door to collect. No, they will simply go after what you will give them. I'd cancel ant credit cards they might have access to, and demand (in writing) that ALL correspondence in this matter be by mail. Then simply dispose of those. Over time they will stop when they come to the realization that they are not getting any more.

Good Luck!

Jim

Good morning Jim, first of all, I hope you can understand me clearly. I'm using a translator to write this. Thank you for sharing your experience on this topic. It's what I think will happen, but my wife is still worried. However, we absolutely refuse to give them one more cent for the deception they used to get us into this. I accept that, as a responsible adult, I should never have signed such a long-term contract with promissory notes and abroad... I really don't know what we were thinking. The psychological game applied is very strong and very effective. Besides, I doubt they gave us any kind of substance because during our entire stay at the resort, we were sick with a fever. Magically, when we left, it went away... I don't know what to think, whether it was a coincidence or something else happened. The idea of returning to Mexico after this experience terrifies me. In all my years, nothing like this has ever happened to me, and the strangest thing is that I'm just realizing it several days into my trip. Today they sent two emails, the first from the "financial institution" stating that they were revoking the debit request based on my request, so it seems they complied with that. I also canceled the cc and explained the situation.

On another note, I received an email from someone in charge of the resort's membership apologizing, understanding that the situation is worrying to us, proposing a video call to discuss the membership and renegotiate the rate. They obviously realize I won't be paying any more. Later, with time and legal advice, I'll tell them to settle the payments with what they've charged. I'll drop the claim I'm making to Visa to recover the amount charged, given that my lawyer believes the contract is void due to bad faith and the CC must return the funds. Even so, I want to put all this behind me, learn this expensive lesson, and never hear from them again. Once again, I thank you for your support and the experience you have, since reading your comments is reassuring. Best regards.