We, Nicole & Michael, are the victims of fraud. The companies involved in committing this fraud against us are NH Krystal Cancun, Regal Resales & Rentals, and Bank of America.
On February 25th My Wife and I (Nicole & Michael) arrived in Cancun. At the airport we met an official and respectable looking young man that walked us through activities in Cancun and offered us a free breakfast and a discounted tour if we visited the NH Krystal for a tour and discussion of their Vacation Club that would last no more than 90 minutes. He promised that there were no strings attached.
On February 26th we attended the sales presentation at the NH Krystal resort in Cancun, Mexico. The first sales representative that we were introduced to was Roberto. Roberto gave a brief tour of the resort. He asked about how long we were staying in Cancun, and we told him that we were leaving on March 3. As the tour continued, Roberto began to explain to us that the NH Krystal had three locations in Mexico, and that they were part of RCI, meaning that our family could vacation anywhere in the world. Roberto then introduced us to a second sales representative his name was Hans.
Hans smoothly and intentionally lured us into the idea of buying into the Vacation Club Investment for generating income by letting them rent out these weeks with a timeshare rental company, Regal Resales and Rental. Hans guaranteed that they would be renting all 50 (25 power weeks and 25 plus weeks) weeks to convention attendees, golf tournaments attendees, wedding attendees, etcetera. Hans wrote down pages of numbers describing how NH Krystal profited from this, and would share a portion with us that would return $54,000 on a $29,000 investment in 24 months. NH Krystal offered a 0% interest free loan from Bank of America to cover the $29,000 until we received our payment from Regal for the weeks we were going to sell. After much discussion we tentatively agreed to the idea. Hans told us that Bank of America was willing to give this type of loan knowing that the vacation club owners would be able to repay it with in six months from the profits gained by selling the weeks through Regal. Hans then introduced us to Marco. During these handoffs, Roberto stayed with us engaging us in personal conversation, I believe to distract and calm us.By this time, hours had past. Marco started the paperwork and surprised us when he demanded we give him a credit card with a $10,000 limit. We did not have one, and it spooked us, we were ready to walk away. Marco asked us to wait a moment. He then came back and told us that Regal had agreed to advance one of the promised payments to bring down our cost to $20,000, a great and special deal, just for us. We were promised that we could get our initial payment of $21,000 in 6 months to pay off the loan and realize a profit of $10,500 payments at 12 months and 18 months. Hans also said that in addition to this "investment opportunity" we would also be included access to what he said was NH Krystal exclusive travel club ICE (International Cruise and Excursions). He said that as a member of this travel club our vacation weeks would be unlimited anywhere in the RCI network. Hans promised that it would give us unbeatable prices on Airfare and Cruises. Hans also said that we would pay no more than $399 per week for accommodations that could sleep up to 10 throughout the RCI network.
It sounded like a great investment, just like Roberto, Hans, and Marco kept telling us it was. Hans also "assured us that the weeks would be rented and told us that only twice ever that weeks had not rented; September 11th and when the hurricane hit the Yucatan three years ago. Sensing that we were still a little reluctant to sign the contract, Hans said that he would waive the first two years cost of the annual membership fee for ICE, a $400 value. The range of benefits for travel and investment sounded great, and Hans & Marco smoothly answered every question we asked. That fact that we were guaranteed an income generating investment, discounted vacation with ICE, 0% financing with Bank of America, and that NH Krystal was part of RCI led us to accept. Marco congratulated us and said he wanted to move us to the NH Krystal for our remaining 5 nights in Cancun and that he would even throw in a couple of RCI weeks for free. We were sold.
Marco directed me into an office and had me speak with a broker on the phone, Claire Banks from Regal Resale and Rentals that Marco personally called. Marco had me speak with the broker to confirm a date and time that she (the broker) could call us when arrived back to the US in regards to preparing our timeshare to be made available for rental. Marco reassured us and guaranteed us that there would not be problem renting out our 50 weeks fast enough to cover the line of credit due in 6 months.
We were then passed from Marco to Ray to start signing papers. We were packed up from the area we had been waiting in and moved into a small office. During the purchase process Krystal disclaimed their guarantee to the rental income. Ray explained that the Krystal lawyers stated that they could not include that clause since technically the renting out of the Vacation Club weeks was handled by the broker. Ray assured us that everything was in there, pointing to our folder of papers referring to what we had discussed with Hans and Marco about the guaranteed payments to us in 6,12, and 18 months. During the signing process we noticed that the Bank of America line of credit was 2.9% not 0%. Ray call in Marco, and he explained that it was 0% for 6 months and would reset to 2.9% at 6 months. We then noticed that it looked like the loan was actually credit cards for my wife and I. Once again Ray called in Marco, who explained that it was a line of credit that would convert to Credit Cards at the end of the 6 months, and we could cancel before that happened. We then noticed that it looked like there was a point on the line of credit we had to pay. Ray called in Marco again, who explained that the broker payments would cover that. My wife and I unfortunately continued to sign. The sales presentation was suppose to take only 90 minutes, but ended up taking over four hours. They expertly and skillfully wore us down and manipulated us. IF WE REALLY UNDERSTOOD THAT THIS WAS A TIMESHARE, WE WOULD NOT HAVE SIGNED! We would have gotten up from that table and left immediately. Roberto, Marco, and Hans, clearly and repeatedly stated that they were selling Vacation Club Memberships that were investment opportunities with guaranteed value, and not timeshares. It was a lie, knowingly and intentionally deceiving us.
Hans was very charming and smooth and said we were special and that he generally doesn't go out his way for his clients like this. He also mentioned that by taking care of us we would send him referrals when we returned home. We really thought he was genuine and that this was a legitimate investment that would benefit us; at this point we were excited about it.
Even though we were on vacation I decided to look through the paperwork Ray had piled into our folder at signing. I had a nagging feeling that something was just not right. On March 1st 2009 I opened up the folder and started reading the details. First I saw that we had been signed up for two Bank of America credit cards, not a line of credit. Then I saw that the rate was 2.9%, not 0%, and that at 6 months it would go up to 16.99%. I then realized that we had to cover the point on the credit cards. All of this was bad, and represented lies Marco and Hans told. The most terrible thing I discovered was that NOT A SINGLE PAGE was left of everything Marco & Hans promised us for the sale of the weeks. When Nicole and I were moved from our original table to the office where we signed with Ray, all of those pages and documents disappeared. This really bothered me and I went down to find Marco. When I walked in, I was quickly intercepted and asked to step into an office, away from other victims they were trying to con. Hans showed up promptly, and with a smile told me that a minor mistakes had been made and the credit differences were small misunderstanding and did not amount to anything, then Marco showed up and assured me that the papers had just been misplaced and that he would get a FAX from Regal with the information we had discussed about the $21,000 I was due in 6 months, and two additional $10,500 payment in 12 and 18 months. Since it was Sunday, they promised they would have it to us on Monday March 2nd. Monday, Nicole and I had a daytrip to Cozumel. When we returned we found the Fax. At a glance it looked OK, with Regal stating $21,000 in the number we expected, with the remaining weeks to sell in 2010. That is a price that turned out to be part of the deception and fraud. When we were leaving the morning of March 3rd I stopped up again to the space used by Ray, Marco, and Hans. I found Hans, and he assured me that I would not regret our purchase and gave me his information so I could refer my friends to him.
March 4th. When Nicole and I returned home to Byron MN we did a Google search on NH Krystal Vacation Club.in one minute of searching, we found out that we were the victims of deception and fraud. I called Bank of America and tried to stop the transaction, but they informed me that the charges had already posted and that NH Krystal had used legal methods to issue credit cards to us, even though NH Krystal had used deception to get us to sign. I also called my credit card issuer, Think Bank, we used to pay the Regal broker fee and filed a dispute on the $661.25 charge. I then sent an e-mail to Ray, Hans, Marco, Regal, and NH Hotels stating that I wanted to Cancel and Void my agreement and that I felt I was the victim of fraud.
March 5th I left a voice mail for Ray Rubio, Quality Assurance Manager, asking for immediate complete voiding of the contracts.
We sent a Fax to Ray Rubio at his provided Fax address, seeking the immediate complete voiding of Krystal International Vacation Club.
We sent a Fax to the address below, specified in the contract, seeking the immediate complete voiding of Krystal International Vacation Club.
Hotelera Chicome, S.A.De c.V.
blvd. Kukulcan Lotes 9 Y 9
Hotel Krystal
Zona Hotelera, Cancune, Quintana ROO, C.P. 77500
Mexico
Fax 01152-998-848-9829
NH Krystal and Hotelera Chicome, S.A.De c.V.
March 5th. I called Claire Banks at Regal Resales & Rentals, explained my situation, warned her that she was being used as a tool in a deception and fraud, and asked that she reverse the $661.25 broker charge. She agreed to immediately reverse the charge and asked that I close the dispute I had opened against Regal Resales & Rentals with Think Bank & Visa. The charges have not yet been reversed but Claire promised the reversal would be on our Think Bank Visa in 3 days.
March 5th.initial e-mails sent to Federal Attorney's Office of Consumer (PROFECO), Minnesota Department of Commerce, and Bank of America using BoA secure website e-mail.
March 5th. Sent e-mail to TV news media NBC affiliate KTTC & ABC affiliate KAAL, seeking publicity and help.
March 6th. We sent a registered letter via USPS, with proof of the e-mail and Fax requests to cancel and void the Krystal International Vacation Club contracts. The e-mail, voicemail, and Fax messages were sent within 5 business days after we signed the contracts. The letter was sent to the following addresses, specified in the contract.
Hotelera Chicome. S.A.De c.V.
Blvd. Kukulcan Lotes 9 Y 9
Hotel Krystal
Zona Hotelera, Cancun, Quintana ROO, C.P. 77500
Mexico
March 6th. Sent e-mail to Cancun International Airport, making them aware of the fraud, and their part in it. We sent an e-mail to RCI, making them aware of the fraud and their part in it. Sent e-mail to US Embassy in Mexico seeking assistance. Sent e-mail to TV news ABC affiliate, KARE 11, seeking publicity and help.
E-mail sent to:
ABC News.com
ABC Nightline
ABC 20/20
ABC Primetime
NBC TODAY [email protected]
NBC Nightly News with Brian Williams [email protected]
NBC Dateline NBC [email protected]
CBS Evening News
CBS 48 Hours
CBS 60 Minutes
CBS Morning News
CNN Headline News (HLN)
CNN US News
Fox News
Letters sent to:
20/20
Primetime
Nightline
World News With Charles Gibson
Good Morning America
CNBC
The NH Krystal Cancun sales tactics are intentional, unethical, fraudulent, deceitful and misleading. I am requesting all charges to both of our Bank of America charge cards ($9720) be reversed, and that the whole contract totaling $19,440.00 be canceled and voided immediately.
Basically this contract was built on deception & lies, and was presented to us not as a time share, but was presented exclusively as a property investment with high profit returns. NH Krystal, Hans, Marco, and Ray deliberately and intentionally deceived us. They used well known names like RCI and Bank of America to legitimize their deception.
We believe the deception and fraud is cause for this contract to be voided. If Nicole and I knew what we know now about NH Krystal, we would have walked the other way when first approached by the NH Krystal representative at the airport.
We were mislead, deceived, lied to, and were the victims of fraud. We are seeking the immediate complete voiding of the contracts we were tricked into signing.
Here is the contact information we have for the parties involved.
Regal Resales & Resorts
Claire Banks
866-395-4582
www.regal.com. Mx
NH Krystal Hotel
Hans Snyman
Marco Olivera
Sales M.G.R.
Paseo Kukulcan, Km. 9, Lote 9 y 9a
Zona Hltelera C.P. 77500
Cancun, Q. Roo, Mexico
Telifone (011-52-998) 848-98-00 Ext. 728/9
Tel/FAX (01152998) 848-98-29
Toll Free Fax USA 1-888-2967129
Fax Gratuito (MX) 1-800-7195640
Ray Rubio
Quality Assurance Manager
Tel. 011-52-998- 848 9800, ext. 728
TOLL FREE FAX 1-888-296-7129
Michael
Byron, Minnesota
U.S.A.
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