Synopsis:
NH Krystal Resorts is an organization of individuals deliberating working to defraud consumers. Use any search engine and type in NH Krystal Resorts fraud and you will find numerous links. The employees for this company deliberately and maliciously seek to entice their customers into an array of false promises and fraudulent timeshare scams. Bank of America is a party to this scam. They know NH Krystal Resorts is committing fraud yet they continue to allow them to set up new customers with their credit cards in order to finance the purchase of the timeshares. The customers then discover they were defrauded and attempt to seek assistance through Bank of America. Bank of America then denies them any assistance, collects the interest and late fees, and demands payment. The consumers are caught owning timeshares they cannot sell and they have huge credit card debt. The consumers then discover they could actually stay at the hotel for less using any travel website than if they had purchased the timeshares. I ask anyone who has been defrauded by NH Krystal Resorts to step forward and let your voice be heard.
Detail:
One April 19, I and my friend met with a salesperson Hans Snyman after receiving a tour of the hotel to discuss the nature of Krystal's products. From the very beginning the presentation, the Mr. Snyman presented the timeshare products as an investment product. This is attested by both me and by my friend. I retained Hans' handwritten notes which were used in order to explain the product as an investment product and how I could resell this product for my person gain.
Mr. Snyman explicitly set forth the amounts I would earn with the sale of their product. He wrote that should I purchase their two 13 week programs (the first titled Krystal Power and the second title Krystal Plus), each of these weeks would sell at a price of $700 thus earning $9,100. False: Once these timeshares were turned over to a third party broker in order to sell the timeshares, Krystal set a selling price of $2,100. This is well above the price set forth by the salesperson.
Mr. Snyman explicitly set forth again the amounts I would earn with the sale of their product. He demonstrated on his handwritten notes that I have the choice of either using the timeshares for my personal use over the course of 25 years or I could sell them for $9,100 (a total of $18,200). Mr. Snyman wrote that the total amount I would have to pay including fees would be $13,900. Taking into consideration the total amount the shares would sell at $18,200, it would result in a net profit of $5,100. Please note that his math was wrong and the amount I would earn is inaccurate. False: The price of these timeshares was set by Krystal at $2,100, not $700. Furthermore, this equation does not take into consideration the maintenance fees. Maintenance fees were never discussed by Mr. Snyman during the selling process.
Mr. Snyman set forth in writing that I could finance the entire purchase through a Bank of America credit card program. He stated that this would provide me the opportunity to finance the entire purchase and within a 6 month period I would make $5,100 net profit. False: The amount I would earn as a net profit does not take into consideration maintenance fees and the amount of profit is inaccurate.
Mr. Snyman set forth both verbally and in writing that once I purchased the timeshares, the timeshares would easily sell. This is attested by both me and my friend. Mr. Snyman attested to this numerous times during the course of our conversation. Furthermore, you can see evidence of his assertions on his handwritten notes. False: As of the date of this report 10 months after the purchase, not one timeshare has sold. The sales team at Krystal is making these same assertions to all its customers.
During the course of my meeting with the representative of Krystal resorts, the program of timeshares was presented to me as an investment option. During the course of our discussion, I asked Mr. Snyman if he knew of anyone that was unable to sell their shares within the six month time period (i.E. Referring to the six month no interest credit card). He stated that, in his experience, he knew of only two times when the all the weeks did not sell right away; once was after a hurricane a couple of years ago, and the other instance was after the terrorist attacks 9/11. I asked him what level of risk was involved in this transaction. He stated that there is very little risk and that most it not all of the shares would sell within 6 months. This was a complete fabrication and a lie. No one who purchases these time share products are able to sell them that rapidly if at all.
One of the biggest reasons these timeshares do not sell is because the break even selling price (the price I as a consumer would need to sell the timeshares in order to merely recoup my costs) is greater than the amount an individual could rent a hotel room for a week through any travel website. Therefore, a consumer would be crazy to purchase a timeshare through a timeshare broker rather than purchase a week's stay at the resort through Expedia or Travelocity.
My Snyman wrote the sequential numbers of 100,75, 50, and 26. These represent the number of weeks an individual could purchase for resale. On the right side of the paper, he wrote the purchase price amounts and right below he wrote the net profit I would receive by selling all of the shares. Also, please note that, if Krystal was not attempting to sell the timeshares as investments and merely for personal use, it would be difficult if not impossible for the average consumer to use 75 or 100 timeshare weeks especially when the individual may only use 2 per year. This is further evidence that the products were presented to me as an investment.
During the presentation, I was told that I would have to pay a onetime fee of $661 to Regal, the 3rd party brokerage company that would sell my timeshares. When I obtained the Membership Purchase Agreement, I asked them about the Maintenance Fee for the 1st Year. A Krystal representative named Ray Rubio stated that this was only a one time fee to the Regal. Refer to exhibit E. Exhibit E is the copy of the acknowledgement from Regal to sell my shares. Note that the Regal's fee amount is the same ($661) as the purchase agreement amount ($661) per the Terms & Conditions. Krystal Resorts lied to me about the yearly maintenance fee. They stated it was merely the one time service fee from Regal. Krystal deliberately set the maintenance fee on the contract to be the exact same amount as the service fee from Regal.
Per my contract with Krystal Resorts, I had 5 days from the contract signing date to cancel the contract. I did not receive Service Profile from Regal in the mail until AFTER the 5 days. This constitutes a material omission of pertinent information which would have influenced my decision to purchase Krystal's product. Regal is stating the maintenance fee is $642 for each week. As noted above, this amount is different than the amount quoted on the membership purchase agreement. This is additional evidence that Krystal originally set the maintenance fee to be the exact same price as the service fee charged by Regal in order to deceive me. Furthermore, Regal's service profile contradicts the Membership Purchase Agreement. The purchase agreement states a yearly fee, while the Service Profile states a Maintenance Fee. A yearly fee and a maintenance fee are different.
The Weekly Rental rate of $2,100 was set by Krystal to the third party broker. When I entered into this transaction, I was informed by Mr. Snyman that the timeshares would sell at $700 per week (this is also set forth on his handwritten notes). I signed the agreement with Regal in good faith trusting Krystal's statements that the units would sell. My impression at the time was that I would make even more money than the salesperson had originally quoted me. Krystal and Regal did NOT inform me that I have the ability to set the selling price for myself. This constitutes gross omission of material information which would have influenced my decision to enter into a contract with Krystal. When I contacted Regal 4 months after the contract date to ask them why the units have not yet sold, they told me that I should lower the selling price. It was only at this time that I was made aware that I have the liberty to change the selling price. Krystal Resorts instructed Regal to sell the timeshares at $2,100. I did not set that price.
On the Buyers Acknowledgement and Understanding, the Buyers Acknowledgement is NOT listed as one of the sole agreement documents. Therefore, this document does not constitute my agreement with Krystal. Furthermore this document is incomplete and does not fully oblige me to the entire product which I purchased. It states I purchased 13 Krystal Plus weeks. I purchased 26 weeks under two different programs of which this Buyers Acknowledgement technically only obliges me to half of what I purchased. Therefore, they cannot state I agreed to the terms of the contracts on the Buyer's Acknowledgement for all 26 weeks. I have not signed a Buyers Acknowledgement and Understanding for all 26 weeks. The documentation is incomplete.
The Buyers Acknowledgement states that I acknowledge that any statements whether verbal or written which are not contained in the official documentation provided to the member will be held invalid in case of dispute. Krystal deliberately includes this in the contract because they are knowingly making false representations regarding their products. I initialed this acknowledgement in good faith believing that Krystal was making accurate and factual statements regarding their product, and that they were including all material and pertinent information. As is clearly evidenced above, Krystal made inaccurate statements and omitted material information. Furthermore, no one waives their legal rights to receive factual and truthful information in a contractual agreement.
August 6th, I contacted NH Krystal Resorts inquiring as to why none of the timeshares had yet sold. The stated that they had no responsibility as to how or if the timeshares would sell and that the timeshares were completely in my responsibility. There response entirely contradicts the assertions they made during the selling process when they stated that the units would easily sell and that most if not all of the units would sell them within the first six months.By stating they have no responsibility, they are also stating they have no idea if and how the units will sell. Therefore, they made a completely false and inaccurate statement during the selling process and misrepresented the product to me. Furthermore, they stated via email that Regal is acknowledged by not endorsed by them. Then why did they encourage me to use them?
On August 11th, I requested that they cancel my contract and refund the money to which they denied. When I asked them about the fact that the units were not selling, they referred to #14 of the Buyers Acknowledgement stating that selling of these units would be under my responsibility. While this is understandable, it further substantiates that they are lying in order to entice an individual to purchase their product only to cleverly design the documentation in order to avoid any responsibility for their claims.
I have made repeated attempts to seek assitance from Bank of America because I financed the entire purchase through a new credit card set up by Krystal resorts in conjunction with Bank of America. After many attempts, Bank of America has refused to assist me. I have sent them detailed information regarding the nature of Krystal's fraudulent activities, I sent them copies of Mr. Snyman's handwritten notes, and I sent them numerous testimonies by other consumers who were also defrauded by NH Krystal.
Bank of America continues to wash their hands of any responsibility despite the fact that hundreds of individuals have come forward claiming they were deceived.in fact, Bank of America continues to approve new credit card applications coming from from NH Krystal Resorts knowing full well that with each application they receive, a customer is being deceived. They approve those applications and allow the customer to purchase timeshares all-the-while the customer is misinformed. Then, after the customer realizes he/she has been defrauded, Bank of America does nothing but reap the rewards of interest charges and late fees.
Bank of America is knowingly facilitating this fraudulent scam. They continue to finance NH Krystal Resorts requests for credit card authorizations knowing full well the customers are being deceived. And they are doing nothing to stop it. Therefore, they too are committing fraud.
In summary, NH Krystal resorts is a loathsome deceitful company using any and all means necessary to deceive their customers into purchasing timeshares as investment options. I'm not the first nor will I be the last one to come forward about these fraudulent dirt bags. What makes this even worse is Bank of America doesn't have the balls to go after NH Krystal Resorts, so they focus their attention on the little guy and force him/her to pay for the scam.
Jack man ute
Las Vegas, Nevada
U.S.A.
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