On August 22, as we stepped off the plane and walked through the Puerto Vallarta airport, we were met by representatives of what we thought were the airport rental car companies, but actually they were sales reps for Velas Vallarta and other timeshare companies. So even from the minute you step off the plane, you are not even sure who you are talking to. After deciding on the rental car, he began talking about the fun adventures that we could sign up for during our stay there. However, that was not all. He began telling us how much cheaper we could rent the car and that we could get up to 50% off any of the Vallarta Adventures if we would attend a 90-minute presentation and all-you-can-eat breakfast the next morning (that turned into 6 hours), so, wanting to save money, but having no intention of buying, we said yes.
At the Velas Vallarta Resort presentation, our sales rep., Rick San Filipo told us about a timeshare/fractional ownership opportunity. From the very beginning, we told him we could not afford it, and that we already had two other timeshares. However, the BAIT in this scam was: 1) We could trade in both our timeshares to lower the purchase price, thus eliminating two yearly maintenance fees. 2) We could use the 25 weeks purchased at Velas to rent out 6 weeks/year at $2,388 per week, and receive a check in the mail by March for $14,328, thereby enabling us to recoup the downpayment that we would have to finance (by opening up an RCI MasterCard with a line of credit for $15,000).in the meantime the interest rate would only be 2.9% for 7 months, and by March, when the rate would rise to regular credit card interest rates, we would be able to pay it off with the income from the rentals.in fact, Rick promised us that within 2 years we would be able to pay off the total amount of the purchase price, $27,000, so we financed the rest at 9% interest through Velas. Realizing we would not even be able to make the payments of $428/mo. On the loan for those 2 years, as well as the min. Payment of the MasterCard, we started to back out, but Rick even had a scheme for this pit we were digging for ourselves.
The day after signing the contract, we began to question some of the things they had promised, namely the expectation of selling or renting our weeks, was the one thing they specifically had us sign, saying that they were not responsible for, in a separate contract. Of course, they had an explanation for this. But, at the same time, we realized that we had signed a waiver that eliminated our 5-day right of recision of the contract, so we believed that there was no way of backing out of it, and that we had no recourse.
Upon arriving home and speaking to the DREAMS, RSI Co. (the rental & sales co. We were told to call and whose sales rep's name & business card we were given, the co. They were supposed to have a 4-year contract with, and the co. That subsequently is omitted from the list of companies they continually work with and who have our best interest at heart), I became more suspicious. Why? Because I was never allowed to speak to the sales rep whose name we were given. Because they spoke of an upfront fee of $899 tax, that was manditory, or a 5% commission on each week they rented for us. This was already a discrepancy. We were told a different amount and a different reason for the fee, and nothing about a commission. When I complained that this was just too much, the DREAMS rep. Immediately said he would talk to his supervisor. Making me believe he had put me on hold, he started speaking again about 30 secs. Later and lowered the fee to $599 tax. I knew that something was awry! I began looking over the internet, and came across web sites claiming that Velas Vallarta was a SCAM! Its owners were testifying that they were still waiting for the rental checks they had been promised, and 1-2 years had elapsed, but they were still getting the run-around. There really was no rental income from this rental company, it was all a trick! These owners said Velas had not really purchased their trade-in timeshares but just put them on some marketing list for the owners to sell themselves.
We also found out that PROFECO, the Mexican Consumer Advocate Agency, says on their website that no one's 5-day right of recision could be waived for any reason. So we looked for the waiver we had signed in order to write to PROFECO and complain, but it was nowhere in our contract package. Of course not, because it is illegal! A clear violation of our contract! They covered themselves by destroying the written evidence of the Fraud! So now we only have what we were told verbally that is not in writing, except one violation that is clearly written in the contract. It says "that the annual percentage increase for the 'common expenses fees' may not be more than the percentage increase in the Consumer Price Index from Sept. To Sept. Of the previous year as published by the Banco de Mexico... For the same time period". However, the Consumer Price Index decreased by 1.3% in the last year, yet we have already received a notice that the maintenance fee, which is due in Jan., has increased 3% for the year 2010 when it should stay the same or decrease.
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