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I have a settlement hearing on Monday with PROFECO and Palace Resorts. Can anyone who has gone through this before provide insight?

R

RopedIn

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Backstory:

When at Palace Resorts earlier this year, I bought a vacation package, and as part of the sign-up bonus, they upgraded my room and gave me resort credits—which was reflected in the vacation contract package specifically. For a variety of reasons, I soon decided this contract was not right for me. Luckily, I found this website and was able to cancel from home (via email with PROFECO copied, as well as UPS and USPS registered mail) within 5 days. Palace responded claiming I can’t cancel due to accepting the room upgrade and credits.

A couple of weeks later, I disputed the charges with my credit card, which were the first down payment (the second and final of which is/was scheduled to go through in November) of ~$2,500, as well as a recurring charge of ~$220.

The list of what we sent to our credit card in our dispute is as follows:

● Copy of cancellation letter
● Receipt for UPS label (for cancellation letter)
● Receipt for UPS package receipt (for cancellation letter)
● Proof of delivery for UPS package (for cancellation letter)
● Receipt for USPS registered mail (for cancellation letter)
● Federal Consumer Protection Law
● Official Mexican Standard NOM-029-SE-2021 (Commercial practices - Information requirements for the provision of the timeshare service)

This week, our CC company ruled in our favor for the first down payment because Palace didn’t submit documentation to fight it. However, Palace is fighting the dispute of the recurring charge (~$220), and also submitted a new recurring charge for ~$220, which we disputed today. They have been using different names to get around our credit cards “stop” on them—the original payment was from PALACE ELITE TG USD, the next came from PALACE ELITE WEB, and the latest is from PALACE ELITE WEB USD.

On Monday, I have a settlement hearing with PROFECO and Palace Resorts. Can anyone who has gone through this before provide insight? In PROFECO’s email, they provided the blurb below which doesn’t seem promising:

“In our settlement procedure Profeco and the lawyer in charge of your case will act as a mediator to open communication between parties to resolve or to find a possible solution to settle the dispute.” “Profeco does not decide who is right or wrong and does not take sides with either party; instead, we help people reach the better solution for both parties”

Any and all advice about the CC dispute and the PROFECO settlement meeting is greatly appreciated!
 
I can't remember any reports of having gone through this. Keep us posted. Seems to me that what you want is a rescission. What Palace wants is paid for the upgrade you received. Common ground shouldn't be hard to find.

Good Luck!

Jim
 
Wish you luck.

Looks like the Mexican timeshare resorts are getting smarter about getting around rescission laws - give a “free” upgrade during the sale and if they attempt to rescind charge them an arm and leg for that upgrade. Either way the resort developers are coming away with thousands of dollars from the victim, I mean customer.
 
I would guess, accepting the upgrade, then backing out of contract is causing an issue. Maybe just offer to pay for the upgrade you accepted and used....and tell them to call it "OVER".
 
I think you would have been better going into this if you had a Mexican attorney on your side. I think you need to get some information and back up as to how much the upgrade was worth. Look at a few different dates in the future booking what you originally booked and booking the unit you were upgraded in to and get the difference in cost. Have a few different amounts from different dates in the future. You can ry averaging those out. Perhaps even pull some from a few different booking sites. When you have a decent number, try negotiating to pay 25-50% of it. Don't agree up front to pay 100% of the retail upgrade cost as their true cost of the upgrade is far less given the room was already empty.
 
Hi @RopedIn
Profeco is the Mexican agency overseeing all consumer transactions in Mexico / not just Timeshares

You properly followed the procedures to rescind a purchase.

Palace resorts keeps trying to get the monthly charge of $220.
I would ask your credit card company that you want a new card number that keeps all the benefits of your existing card number.
 
Passepartout said:
I can't remember any reports of having gone through this. Keep us posted. Seems to me that what you want is a rescission. What Palace wants is paid for the upgrade you received. Common ground shouldn't be hard to find.

Good Luck!

Jim
Click to expand...
Thank you!

Hopefully that’s what they fight for—in all my communication with Palace they’ve used the upgrade to say that I can’t rescind the contract (not true), and told us there’s nothing I can do to “get out of it”.
 
RopedIn said:
They have been using different names to get around our credit cards “stop” on them—the original payment was from PALACE ELITE TG USD, the next came from PALACE ELITE WEB, and the latest is from PALACE ELITE WEB USD.
Click to expand...
Two can play at that game. If the PROFECO meeting does not go as hoped, cancel the card they have and get a different one.
 
dioxide45 said:
I think you would have been better going into this if you had a Mexican attorney on your side. I think you need to get some information and back up as to how much the upgrade was worth. Look at a few different dates in the future booking what you originally booked and booking the unit you were upgraded in to and get the difference in cost. Have a few different amounts from different dates in the future. You can ry averaging those out. Perhaps even pull some from a few different booking sites. When you have a decent number, try negotiating to pay 25-50% of it. Don't agree up front to pay 100% of the retail upgrade cost as their true cost of the upgrade is far less given the room was already empty.
Click to expand...
Great advice—I’ll bring this information to the hearing. I appreciate it!
 
pierrepierre said:
I would guess, accepting the upgrade, then backing out of contract is causing an issue. Maybe just offer to pay for the upgrade you accepted and used....and tell them to call it "OVER".
Click to expand...

The free benefits we used do not affect our legal right to cancel the contract, as per Article 4.5.14b of the Official Mexican Standard NOM-029-SE-2021:

“In the event that the consumer has used services that the provider has provided him as "free", they will not lose that quality due to the cancellation of the service referred to in subparagraph (a) of this category.”

Having said that, if I was being charged the actual difference between the two rooms ($800, rather than the $2,500 they said is the market rate) I’d gladly pay it and be done with this.
 
Last edited:
Has the hearing happened? I am awaiting the results!

Drumming fingers on desk. . . . :)
 
RopedIn said:
Sorry for taking so long to update!

Unfortunately Palace ghosted PROFECO and me. Still waiting to hear back from PROFECO on the next steps.
Click to expand...
Too bad it's not like a small claims case in the USA, where you get a default judgement when the other party doesn't show.
 
RopedIn said:
Sorry for taking so long to update!

Unfortunately Palace ghosted PROFECO and me. Still waiting to hear back from PROFECO on the next steps.
Click to expand...

I doubt Palace Resorts will show up because if they loose it will set a precedent that could affect their ability to harass people into contract compliance.

Bill
 
Update:

I haven’t heard from Palace or PROFECO since Palace ghosted our hearing.

Chase has now ruled the $220 recurring charge in my favor as well. Unfortunately, there’s still the new $220 recurring charge that I disputed. I’m worried that Palace will continue charging me each time I win a dispute. Is the next step asking Chase for a new card number so Palace can’t continue charging me, or would that not work? I’m also worried that Palace will report me to credit agencies or collections.

In the third to last email Palace sent me, they stated:

“If you open a bank dispute, we will proceed to defend the charges with the documents signed by you and the benefits used during the stay. When we win the bank dispute, we will proceed to reactivate the membership with no changes.”

And after filing (but before winning) the dispute, they sent a second (new) recurring $220 charge, and emailed me stating:

“Please be aware that in case that Palace Elite win the bank dispute we will proceed to reactivate the membership.”

And then their final email was one week later, still before Chase had ruled in my favor. It only stated:

“Please be aware that the recurrent billing efforts will not stop.”
 
VacationForever said:
I would cancel the credit card, and close out the account altogether. If you get a new cc with Chase, the charges will go to the new card.
Click to expand...
Even if I’ve won the disputes and the current recurring charges are no longer ongoing? Wouldn’t they have to submit a new charge, which they wouldn’t have my new number to do? I’m not saying you’re wrong, I’m just trying to understand.
 
RopedIn said:
Even if I’ve won the disputes and the current recurring charges are no longer ongoing? Wouldn’t they have to submit a new charge, which they wouldn’t have my new number to do? I’m not saying you’re wrong, I’m just trying to understand.
Click to expand...
Exactly the problem, that they will keep charging your credit card. Even if you ask Chase to close that and issue a new credit card, recurring charges will hit the new credit card. That is the way credit card works, charges that go to the old number will automatically be routed to the new numbers. If Chase AGREES that you are not liable for all recurring charges, that is fine. However, if you have to dispute each time, it is going to be exhausting.
 
I would ask Chase for a new card (with a new number), and to block any transactions from flowing to the new card from the old one (ask that the new card not be linked in any way to the old one). If they say they can't, then I'd cancel the account and try to open a new one in 6 or 12 months.
 
Generally a merchant doesn’t need the new number to continue charging the credit card. In some instances, Visa and Mastercard have methods to notify merchants with recurring charges of the new card information. Even if the card number was changed due to fraud. Best to close that creidit card account and leave it closed long enough to open a new account that will have no ties to the old account.
 
Alternatively: you now have all the information you need to dispute the charge. Keep it handy and send it in each month; the only thing that changes in your dispute claim is the date of the charge. It will probably take 5-10 minutes per month. That might be worth it if you want to keep this card.

Eventually, they will give up. Chargeback rates are one of the things that credit card issuers track closely, and merchants are penalized---up to and including being excluded from that card network---if they get too high.
 
Update:

Last week, Palace didn’t show up for our second hearing with PROFECO, claiming to PROFECO they never received the request.

As a reminder, the last email that Palace sent me was the first week of August, solely stating:

“please be aware the recurrent billing efforts will not stop”

Earlier this week, Chase ruled the latest dispute in my favor, and just now, Palace sent me the following:

“Just to inform you the refund has been already apply to your bank account please confirm with your bank. We await your reply.”

So, great news! They didn’t mention charging me for the room transfer, resort credits, or the rest of the contract (with ~$2,000 originally planned to be charged the first week of November). They also didn’t mention or confirm any termination of the contract. Should I reply to their email requesting confirmation of termination, or should I just leave it and consider this a big win?
 
RopedIn said:
Update:

Last week, Palace didn’t show up for our second hearing with PROFECO, claiming to PROFECO they never received the request.

As a reminder, the last email that Palace sent me was the first week of August, solely stating:

“please be aware the recurrent billing efforts will not stop”

Earlier this week, Chase ruled the latest dispute in my favor, and just now, Palace sent me the following:

“Just to inform you the refund has been already apply to your bank account please confirm with your bank. We await your reply.”

So, great news! They didn’t mention charging me for the room transfer, resort credits, or the rest of the contract (with ~$2,000 originally planned to be charged the first week of November). They also didn’t mention or confirm any termination of the contract. Should I reply to their email requesting confirmation of termination, or should I just leave it and consider this a big win?
Click to expand...
Watch the bank and/or CC accounts. When the money is safely back in your account, you can consider it a done deal and reply cordially that the matter has been settled and don't bother looking for you around their resorts. You sure don't have to reply all that promptly, as it's been the better part of a year, let 'em sweat.
 
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