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Trouble getting full refund after cancelling timeshare

L

Linle

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May 29, 2013
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Hello, new to Tug here. Just wanted to get some advice on getting a full refund from cancelling a Mexican timeshare with Royal Resorts in Cancun. We luckily were able to rescind within the 5 day period and got our 10% down payment back, however we were told that the $300 USD closing cost was non-refundable. We did initial where it was indicated the closing cost was non-refundable, however, doesn't Mexican law say that we should be able to cancel the timeshare without ANY penalty? Royal Resorts said that Mexican law entitles us to a full refund of the cost of the timeshare only. They claim that the closing cost is the paperwork and administrative cost of drawing up the contract we signed and is NOT a part of the timeshare price. I tried to get more detailed information from Profeco but their email response was very generic and could not answer our specific question about refund of closing costs. Profeco says we are entitled to a full refund but that if we use any of the company's service they can charge us the regular charge for that service. It seems Royal Resorts managed to get some of our money by this loophole in law. Other than getting a lawyer involved (which $300 is not worth it), doesn't seem like there's anything we can do. Should I just be glad we were able to cancel and get our down payment back? Thanks! :wall:
 
As you know, Mexican law is different than US law, and you may just have to kiss off that $300. Many would settle for that instead of a contract you can't sell or get out of.

If you want to pursue getting it back, you may want to enlist ProFeco the Mexican office of consumer affairs. Here's a thread with a contact name and email: http://www.tugbbs.com/forums/showthread.php?t=192804&highlight=profeco See post #3.

Good luck, and welcome to TUG. Glad you were able to rescind.

Jim
 
From what you said in your post I think the explanation you got is clear.

"we are entitled to a full refund but that if we use any of the company's service they can charge us the regular charge for that service".

They say you used a service and you are being charged for it.

Im not saying I agree, only that I think they have a case, and I think you ought to be happy you were able to change your mind about the timeshare and get the downpayment back.
 
I agree with Ron. Also, If $300 is going to cause you some financial strain then you should not be looking at buying a timeshare at this time.
 
And $300 is a fair and reasonable closing / transfer / legal fee. In many respects this could be considered $150 to transfer to you and $150 to transfer back from you.

I'd suck this up and move on.
 
Thanks for the quick responses! and direct! I will not waste anymore time on this then. From here on out, I'll only be renting timeshares.
 
Linle said:
Thanks for the quick responses! and direct! I will not waste anymore time on this then. From here on out, I'll only be renting timeshares.
Click to expand...

This is the place to find them.
 
SMHarman said:
And $300 is a fair and reasonable closing / transfer / legal fee. In many respects this could be considered $150 to transfer to you and $150 to transfer back from you.

I'd suck this up and move on.
Click to expand...
I disagree that it's fair to charge a closing/transfer fee before the five-day rescission period is up. Once the buyer legally rescinds the contract there is no longer any agreement to purchase. Therefore, what is being "closed" or "transferred" that would entitle the seller to a fee?

I think the buyer is within her rights to demand a full refund. Keep after Profeco to get it. The buyer didn't obtain any of the resorts "services" for closing a transaction that no longer exists. Once that contract was rescinded, there was no transaction to close or transfer.
 
When Profecto says charge full price for the services I thought they meant for any of the "freebies" they offered to get you to tour. If you tour but don't buy, you can get them for free. If you tour and buy you get them for "free". If you buy and rescind you must pay. So they can charge you for the breakfast they served, they can charge for the pina coladas they served, they can charge for the water park tickets, tote bag, water bottle, snorkeling tour, etc that they "gifted" you. Also if you were staying there on a rental and they "upgraded" your room for buying they can charge you the full rack rate difference if you rescind.

I agree that they should refund the closing costs.
 
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tschwa2 said:
When Profectp says charge full price for the services I thought they meant for any of the "freebies" they offered to get you to tour.
Click to expand...
I disagree with the resort charging for any of the freebies, too. They invite you to come and entice you with the freebies to sit through their presentation. I think that's a contract of sorts. You promise to come to the presentation and they promise to give you some free stuff.

Just by showing up you've fulfilled your part of the agreement. You didn't agree to buy the timeshare or to pay for the freebies if you didn't buy. They should give you the freebies you were promised with no strings attached because that was their part of the agreement.
 
What I think Profeco means by the resort being able to charge for their "services" would be in the case where a resort offers you a reduced rate or a free stay in exchange for coming to their presentation. Maybe if you didn't attend the presentation, they could charge you the going rate for the room.

But, to offer anything in exchange for attending a presentation and then charging you for it if you don't buy what they are selling just isn't right. I also always thought it was rather tacky when you finish the "free" breakfast the salesman asks you to leave a tip for the waiter.
 
Is the sale consumated at signing or at the end cancellation grace period. It sounds unreasonable to begin closing until the grace period expires.
 
Karen G said:
I disagree with the resort charging for any of the freebies, too. They invite you to come and entice you with the freebies to sit through their presentation. I think that's a contract of sorts. You promise to come to the presentation and they promise to give you some free stuff.

Just by showing up you've fulfilled your part of the agreement. You didn't agree to buy the timeshare or to pay for the freebies if you didn't buy. They should give you the freebies you were promised with no strings attached because that was their part of the agreement.
Click to expand...

As a Royal Resorts owner since 1991, we have gone through many of their sales presentations. There are no freebies, except maybe breakfast or lunch during the presentation. Their presentation is fairly low key especially after sitting through a Grand Luxxe one.
 
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