Playa Grande & Solmar owners- please read

[oldbuyer]

As many of you may know, the Solmar group has just raised the transfer fee again. For owners who can no longer use their contracts, this has become a huge expense. The fee to transfer your existing contract is now $1,200 to more than $5,000 dollars, depending on if you sell it yourself or use a broker!!!!
An apparent alternative is to surrender your paid-in-full contract for a fee that is currently $500, according to Resort.com, in which case you pay them $500 and they resell it to some other poor soul.

I have contacted Profeco and have received the following answer to several questions that I emailed them about last week.

Question one: If the resort transfer fee is not indicated on the developer's contract can the developer raise the transfer fee to any amount at any time or are there restrictions? “No, if that is not established in your contract, they cannot arise any fee.”

Question two: If a contract is paid in full and if the maintenance fees are current, is it possible to surrender the contract back to the developer without cost (terminate the right to use)? “If your contract states so you can do it.”

I requested on several websites that owners who have any Solmar/Playa Grande contract language regarding transfers to contact me. None of the contracts examined so far have any assignment clauses or transfer procedure or fees. What does that mean? According to Profeco, if the fee is not part of your original contract, it can not be collected (see answer to question #1 above). It also might mean that if there is no provision for assignment it might not be re-assignable. It is also possible the official contract (Spanish language version on file at Profeco) does have this clause, but was omitted in the English version contract you signed.

What do you do? Fill out a Profeco complaint. It’s simple, free--it is also not binding--but the more complaints Profeco receives the better the chances this questionable policy will be rescinded. Please file a complaint even if you are unsure if you are ever going to sell your contract.

What if you purchased your contract in the resale market? You might be hosed because you probably do not have a copy of the original contract to submit with your complaint. Profeco looks at the contract date for the applicable law that is determined by the original contract date, not the reassignment date.

Lastly, join the boycott. Do not spend a dime at these resorts and do not accept resort credit or affiliated restaurant script. If you must attend a Grand Solmar presentation, insist on cash or attend a presentation at another resort that has better business ethics.

Profeco does not require the presence of the consumer during the mediation procedure. To be able to analyze your paperwork, it is required to submit the following information:

1. Fill out and print this form: http://www.profeco.gob.mx/formas/f_esp_quejas.asp. (Consider using Google Chrome with its translation feature or similar as this form is in Spanish.)

2. Copy of the ID of the person(s) who signed the contract (passport or driver’s license).

3. Copy of the entire contract (ALL clauses and/or recitals)

4. Copy of the evidence of payment of the total amounts paid, such as credit card statements, issued by the bank.

Email these documents to: extranjeros@profeco.gob.mx.

Or snail mail the complaint and supporting documents 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. (Mexico City)


Please file a Profeco complaint and post your responses on TUG, Trip Advisor and Playagrandeclub.net

 

[california-bighorn]

Sticky ?

I think this should be placed with the other Stickys in the Mexican Foram. This tactic of raising the transfer fees will probably be employed by other Mexican resorts.

 

[oldbuyer]

I agree as this might be just the beginning and the complaint process will be the same with Profeco for all resorts (They can only charge the amount in the original contract).

Moderator please move to whichever area best serves the readers.
THX

 

[beach_bumz]

I just returned from Cabo and am just catching up on all this. I do have my original contract, but unfortunately it's locked up in my office and I'm on vacation til late August. I believe when they first raised the fees a year or two ago I looked in my contract and didn't see anything related to transfer fees mentioned, but I could be mistaken. I will fill out a Profeco complaint as soon as I can get my hands on my contract.

Thanks for all the info. Sure wish I hadn't dumped so much money at the Ridges a few weeks ago

 

[Karen G]

Pueblo Bonito has also raised their transfer fees

I just looked at my PB Rose contract for our timeshare that we purchased in 1998. In very small print at the bottom of the contract is item #9 which states:

Buyer shall not assign his rights under this contract or assign this note without prior written consent of the Seller. A One Hundred Dollar (U.S. $100) transfer fee shall also be required to consumate any such assignment.

We aren't trying to sell our unit, but I've heard from others that the PB's now charge $300 to transfer ownership. If there are any PB owners who are thinking of selling or transferring their ownership, check your written contracts. Our is a very long sheet of pink paper.

It would be interesting to know how more recent sales contracts are written and if they show a dollar amount for transfers of ownership.

 

[PamMo]

Pueblo Bonito charges $500 per week transfer fee. I just transferred two weeks, and PB got $1,000.

 

[Karen G]

Pam, which PB was this? Did you have a copy of your purchase agreement and did it specifiy an amount for an assignment of ownership at the time you purchased it?

 

[nazclk]

Mexico timeshares

I think we need to find a Mexican attorney, or an american international attorney, and file a class action law suit against the Resorts

 

[PamMo]

Karen, they were PBSB weeks. I bought them resale, so I never got a copy of the original sales contract. When I bought them a few years ago, I don't remember if I paid $100 or $300 each week - which I thought was atrocious at the time, because it was 2 weeks on one contract! The current $500/wk transfer fee is ridiculous - but not as bad as Solmar Group!

 

[oldbuyer]

Update

A large Ebay reseller AND Resortcom confirmed yesterday that they just changed the 40% resellers fee to 10% for all. This makes the fee the same for resellers and owner transfers. Resortcom also reconfirmed that they are still accepting surrender contracts for the $500 fee.

No contract has been found that allows for ANY transfer fee making the collection of any fee illegal according to Profeco.

Profeco can only sanction and can not enforce Mexican consumer laws. I have no idea how many complaints have been filed but if you do pay a fee do it by bankcard as you might be able to recoup your fee through your credit card issuer in the future.
In the interim, I'm not spending a dime at this resort.

 

[Carguy65]

I tried calling resortcom to give my playa grande timeshare back and they would not accept it. Who do I call to pay the $500 to get rid of it?

its paid off and maintenance up to date.

 

[oldbuyer]

contract surender

hold off a few days longer as I have just visited the resort and the local Profeco office and will have more information to provide. If you must do it now contact Jennifer at Resort com but it's my understanding they now have no policy and every case must be negotiated individually.

 

[Cm1401]

I have reviewed both of my contracts, no reference to the fees. I only have a English copy. Was never offered a Spanish copy.

If you are all paid up, couldn't you just return to sender the bill when get our renewal? Mark Not at this address. or better yet, log in and change your address to their los Cabos Address. They do not have any financial info on me, I paid in full with a credit card.

 

[tomcoo]

I have a suggestion.

Get a copy of the registered contract and compare it to your English contract using the Mexican Consumer Protection laws. I did and the English contract was a violation of several articles of the law. That is how I got my money back.

 

[Barbeque]

We bought a unit from Solmar first use of 1998 the maintenance fee was $ 275.00 per year. The bill we received for 2013 was nearly $ 600.00. We had found a buyer, but the 10% off the original purchase price transfer fee and unknown future increases made it not so desirable to the buyer. I also had a problem with not disclosing these facts like the Mexican timeshare salesmen. Do to having a child in college etc. I did not want to continue paying for a timeshare in Mexico. We traded it anyway, and with the trade fees I can rent as cheap or cheaper.
I contacted Resortcom and was able to surrender my week back to the resort for free. My week was paid for and there were no fees owed. I asked if they were buying them back and they said no. My decision was simple is would I take on the obligation of having this timeshare if it was free and my answer was no so farewell Solmar, so I surrendered the week. It was straightforward and not a problem. This may be an option for those of you that feel trapped by their rising fees and the transfer fee. If you have a Solmar week you do not want contacting Resortcom may be your answer.

 

[oldbuyer]

Update of original thread with Profeco complaint results

I was in Cabo in October and found the Profeco office (third floor of Golden Plaza office building). The office has a two-person staff, but would not provide their names or the local phone number to reach them.

When I walked in the door, they said, "Timeshare rescission?" I said I wanted to get some timeshare contract legal advice. One of the women immediately called Profeco in Mexico City and I spoke to attorney Tanya C. I asked if it was legal for a resort to charge (and then greatly increase) a transfer fee if such a fee was not part of the original purchase contract. She said I must submit a Profeco complaint to her attention for a ruling.

I submitted the completed complaint online around November 1. I asked that Profeco rule on the legality of charging for a transfer when a transfer fee is not specified in the contract. Since I was not in the market to sell my contract but wanted to find out the legality of the fee, I supplied one of the contracts for which I had paid a $500 transfer fee a year ago and asked that the fee be refunded. On November 5, I received a message from Laura M. L. who asked if the complaint was against Playa Grande or Resortcom, the merchant that charged the transfer fee to my Visa card. I responded that Resortcom is a financial processor for PG/Solmar and that I was directed by Playa Grande to submit the transfer paperwork and make the fee payment to Resortcom in San Diego. Laura indicated the complaint was now in process and I asked her to forward it to Tanya C. who was expecting it.

Ten weeks later on January 16, 2013, while staying at the resort, I received this response from Laura:

"The transference service was acquired with Resortcom (which is a completely different company from Playa Grande), therefore, Playa Grande does not have any responsibility or relation with the transfer, the only obligation of Playa Grande is provide the timeshare service.

"Therefore the supplier called Resortcom should have provided you the terms and conditions of the offered services and then you will be abide by those terms."

I immediately responded, again, that Resortcom is the administrative processor and the fee and required paperwork came from the Playa Grande member services department. Laura replied that unless I could provide further documentation that Playa Grande is the defendant, the case would be closed in 10 days.

I contacted a friend who is a timeshare VLO in Mexico. My contact said a Profeco complaint is a waste of time as the applicable law is the Spanish language contract, which is usually not an exactly translated into the English contract, and occasionally "by accident" certain fees, blank spaces and rights are not reflected in the English version we all sign. It doesn't matter that none of us have seen or signed the Spanish language contract; it is the only contract that is binding.

So basically Profeco is a toothless Ministry. Unless it's a simple problem of your five-day rescission rights, they will run you around in circles and if anyone really knows or cares about consumer protection laws, they have almost zero enforcement capability. I also found out that Mexican law does not recognize class action lawsuits, so individual cases must be litigated in Mexican courts. Some of you know there are no Mexican courts, just continuances, arbitration and some occasional mordita to get a settlement.

 

[Mimi121]

We bought a unit from Solmar first use of 1998 the maintenance fee was $ 275.00 per year. The bill we received for 2013 was nearly $ 600.00. We had found a buyer, but the 10% off the original purchase price transfer fee and unknown future increases made it not so desirable to the buyer. I also had a problem with not disclosing these facts like the Mexican timeshare salesmen. Do to having a child in college etc. I did not want to continue paying for a timeshare in Mexico. We traded it anyway, and with the trade fees I can rent as cheap or cheaper.
I contacted Resortcom and was able to surrender my week back to the resort for free. My week was paid for and there were no fees owed. I asked if they were buying them back and they said no. My decision was simple is would I take on the obligation of having this timeshare if it was free and my answer was no so farewell Solmar, so I surrendered the week. It was straightforward and not a problem. This may be an option for those of you that feel trapped by their rising fees and the transfer fee. If you have a Solmar week you do not want contacting Resortcom may be your answer.

B.
Do you have the contact information for resortcom? I have a Grand Solmar week I need to relieve myself of. Thanks

 

[oldbuyer]

As of 9 months ago the surrender fee was $500 for a Playa Grande contract
and this cost was subject to change.

The previous poster was supposedly able to surrender her (old Solmar) contract for no cost.

That's a shame that their newest property (Grand Solmar) is also worthless and they will probably resell your contract to a new sucker.

Contact: Jennifer Duncan, Esq at memberservicesadmin@resortcom.com

Please update this thread with the cost and experience of your contract surrender in case they changed the rules or prices again.