
Victims of the Royal Holiday Club timeshare operation are fighting back with websites and news stories publicizing the fraudulent practices of this business. In addition, a major television newsmagazine is gathering stories of victims for a possible segment on their show. It also goes by the name Premier Royal Holiday.
Groups with names like "RoyallyScammed", Royal_Holiday_scam, and Royal-HolidaySucks, have all been started by victims of the company that targets travelers on vacation to get them to sign illegal contracts and relieve them of thousands of dollars. RH has sales agents primarily in Cancun and Cozumel, but also in the Bahamas and other Caribbean locations.
They have joined to share their stories, tips on how to help new victims get refunds, and press for changes that will put Royal Holiday out of business. So far, their one small victory has been to get Royal Holiday to stop listing Hyatt, Marriott and a host of other big hotel chains as 'affiliates' on their website (although RH still makes this claim in their printed material).
Other changes they would like to see are the credit card companies refusing to process incoming charges from this fraudulent company, or at least immediate process chargebacks on the basis of a fraudulent transaction (rather than a mere contract dispute).
How does this happen to supposedly intelligent adults?
"They're so slick. They have this veneer of respectability because they have a huge office off the main lobby of the hotel," said one victim on the RH scam site. RHC does not actually own any of the resorts in their slick, thick catalog. They claim at least part ownership; in fact they nervily claimed in a letter of Dec. 2004 that they had just acquired the "Park Royal Los Cabos", and also that they had added a "strategic alliance" with Mexicana Airlines so as to offer its members special packages.
In fact, the sales reps for RHC make up anything to get a sale. They offer fictional air packages/discounts/flyer miles; they offer fictional golf packages; and lately they reportedly offer fictional annuities!
Mike, the head of the Yahoo group, Royal Holiday scam, has summed up all the company's angles very succinctly.
"The key points that I believe should be emphasized are (especially #13): 1) They hound you in the lobbies of reputable hotels (so the hotel is complicit) to give you the presentation so forcefully that it ruins your vacation. 2) They often serve drinks and offer amenities and spend hours at the presentation to get you to join. 3) They offer selling your timeshare at inflated prices to pay for your membership – They gave me a certificate for $14,500 from Century 21 which was bogus. 4) They promised that my 15,000 points would get me a two bed oceanfront suite which they showed us – another lie and typical scam tactic. 5) They said that Royal Holiday was an exclusive club and as such was all inclusive – another lie and typical scam tactic. 6) They claim that Royal Holiday has part ownership of most of their resorts - another lie and typical scam tactic to give them credibility; in fact, they rent out blocks of rooms at deeply discounted rates which translate to very poor service for those rooms. 7) I charged the down payment to my credit card for $3087.50 (and have the voucher) but when I got my bill they changed the amount to $3875.50 another tactic reported by several members here. 8) They say that you can cancel with 10, 30, (45 days in my case) but do not honor your requests to cancel and delay you until your options run out - another common problem. 9) They charge you credit card at will without authorization unless you report your card stolen - another tactic reported by several members here. 10) They charge you ridiculous fees at the first sign of a hurricane repair property they don't even own. 11) Their service is terrible if you actually do try to use them – they charge you so many fees that the cost of the vacation is almost always greater than what you would pay if you simply booked it through an online agency such as Travelocity. 12) Once you realize that they are a scam and decide to stop paying, they call you incessantly at home, make threats and get very belligerent – lying all the time again to delay any compensatory action on your part. 13) Credit card companies seldom honor fraud complaints and seldom refund your money – VISA or MC should remove Royal Holiday as an authorized vendor. MAKE THIS POINT LOUD AND CLEAR!!!! 14) They report you to American based collections agencies (Monterey and Concord Servicing) with whom they have million dollar contracts with Royal Holiday to collect charged off debts – accounts that are over 90 days and given up for lost. These collections agencies are aggressive and abrasive, violate the fair trade and debt collection laws, and have been known to file complaints against a couple of our member's credit report. 15) Most often relief is only attained after a long hard stressful battle with them through the PROFECO – the Mexican consumer protection agency."
Another victim, Diane Sgro of Connecticut, said it is partially the government's inability to hold timeshare developers to their contracts that has compelled her to dissuade all of her friends from investing in Bahamian timeshares. "We got Hoovered," Sgro said. "I tell every-body...(The Bahamas is) just not worth it. As much as they put out that there are laws, there's nothing there."
Charles, the founder of the online group Royally Scammed, was also a victim. "My wife and I got scammed when we went to Cancun, Mexico. We never owned a timeshare but everything they told us sounded good. We travel quite a lot and thought it was a reasonable deal. The problem is that Royal Holiday will lie to anyone just so they purchase the membership. Almost everything they tell you about the membership is a lie. I can't believe they continue to scam people." His site is at www.royallyscammed.com
KING5 television news ran an excellent story last fall on the problems with the RH contracts.
KING 5 had University of Washington law professor Kate O'Neill look at [one victim's] contract. [reporter]: "Would you sign that deal?" Kate O'Neill: "I hope not." O'Neill points to several clauses in the contract that all prospective timeshare owners should look for. Here's one: If the [victims] want to sue Royal Holiday, they'll have to make a long trip. "The purchase and sale agreement says the governing law will be the law of the state of Mexico City," O'Neill said. The contract also has customers sign a merger clause. "They are very dangerous clauses for consumers to sign," O'Neill said. The merger clause basically means verbal agreements can't be added to the contract. Though the salesman told the [victims] they could sell time back to the club, there are no rules for that in the contract. So they are out. "I doubt my typical first-year law student would understand what this means until after I teach them contract law," O'Neill said.
The full story can be accessed online here at http://www.king5.com/business/stories/NW_101707INV_timeshare_KS.1789c8d63.html
Victims of the Royal Holiday scam are encouraged to join any of the groups to share information and fight back. They give email or web addresses of the appropriate governmental and private consumer offices where you might get your refunds or make changes to business laws inre dealing with foreign companies. Some members of the Yahoo group have had success listing their story with the Squeaky Wheel.
The FTC is reportedly interested in complaints; one rep said that "if they get enough complaints from people they can stop them from operating, it has to be a group tho, not just 1 or 2 individuals."...I'm sure the info is out there already, but if for some chance not it is 1-877-382-4357, or www.ftc.gov/credit.
Another victim who was successful in getting a full refund says, "go here to write the Mexican Administration for Tourism: http://www.sectur.gob.mx/wb2/secturing/sect_8509_mailbox. As you can see, if you are persistent, you too can get all money returned and out of the contract. Do what she did, and you too will have good luck. Mexico does not have class action suits, and since these agreements were signed in Mexico, you can not file a class action suit. What you can do, is use the power of the Internet, be heard, share your story, and as others join in we are more powerful than a class action suit."
Major hotel chains, credit card companies, and travel agencies all seem complicit by at least turning a blind eye to slick scams operating in their midst. It would help if the government travel warnings from the State Department, etc. were more explicit about fraud. Only the Florida Attorney General's official warning is more explicit, although its office is little help after the fact. You can read their warning here: http://myfloridalegal.com/newsrel.nsf/newsreleases/22334FF77D6CFA10852573170044A67A: "Beware Foreign Timeshare Investments" and from the Florida consumer affairs office at ConsumerAffairs.com at http://www.consumeraffairs.com/news04/2007/07/fl_timeshares.html.
Knowledge is power, but few travelers think to check online before signing any contracts while on vacation.
The text of this article is Copyright © 2008 Minnie Apolis. All rights reserved.
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AMENDED TO ADD:
I have come across a suggested template for a letter to the credit collection agency used by Royal Holiday (RMI). It cites specific consumer law or regulation, and should be very effective. It should be worded something like this:
Account Number: (insert your account number here)
Dear Sir or Madam:
This will serve as your legal notice pursuant to the Fair Debt Collection Practices Act, 15 U.S.C. Section 805, to cease and desist all further communication with me in regard to the above referenced debt or debts. You are hereby instructed to cease collection efforts immediately or face legal sanctions under applicable Federal and State law.
If you fail to heed this notice, I will have grounds to file a formal complaint against you with the Federal Trade Commission who is responsible for the enforcement of the FDCPA and with the Attorney General's office.
I have decided that I will not work with your collection agency or any other collection agency under any circumstances. I am disputing the charge with the original creditor. By sending this letter, it is my intention to stop all phone calls and collection activity from this day forward.
I also reserve the right to file suit against you for any future violations of this law. I may utilize telephone recording devices to document any telephone conversations that we may have in the future if you fail to comply with this cease and desist letter. You are also notified that should any adverse information be placed against my credit reports as a result of this notice, that appropriate action will be taken.
I intend to keep a log of any contacts you make with me after you receive this letter. In addition, you may not contact me at my place of employment as my employer forbids such communication. Please give this very important matter the utmost attention.
Sincerely,
--------------------------------------------------------------------------------
And then do it! Keep a note pad by the phone to make a note of any phone calls that come from a collection agency after sending this letter. You will need to note the exact date and time, and brief summary of what was said. Good Luck!
This is an informative and helpful article.
Thanks for this information. I will let others know.
Add another horror story to the list. We fell scam to Scott Glidden a born again christian? at Los Tules selling Royal Vacations. He lied to us on numerous issues would not accept a letter to return documents to get out of contract. Then in so many word I was told if I valued my life that I would go through with the deal. I have a nervous condition and was trying to research a club in which I could vacataion. But after that statement I went into having panic attacks and just wanted out of the country no matter what for the safety of me and my wife. We were at los tules on March 3, 08 in which we signed the papers and went back on 4th to get out. I will be sending a letter monday to their office requesting out but expect no action. I only pray that no one should have to go through what we did on a vacation. I will keep you all posted on my work and if you can help me or I can help you my email is ericgoe@yahoo.com God bless
Excerpt from:
I'll give you the short version - It's now 2008, I have yet to successfully book a vacation, I have nothing proving that I have that annuity (which an actual employee has documented doesn't exist anyway - ), I have a yearly maintenance fee that I was told would never go up, it's now over $100 more then what it started at ($360/yr), I have useless email addresses and phone numbers to a company that I can only speculate even exists - unless you want to hear what they can't do or won't do for you, I have an unfulfilled request to receive the property directory (requested from day one because they were out at the presentation (how convenient)), I have an contract that I didn't know existed until just recently, one of the pages being the actual cancellation terms that I never received (very convenient) while I was there, I have huge regret ever going to the Bahamas, but more importantly to the presentation they offered (which by the way is more of like a salesman sitting on your lap, not a true presentation). I have been lied, deceived, and denied the reimbursement of all the funds I have put into it (15k to date), even though their own contact states that if you don't receive all of the paperwork in the beginning, you're contract is null and void (and this includes not receiving the operating rules of the club, which I have not had until just recently). Don't fall for it, don't even bother going to their presentation, no matter how much they sweeten the deal (free tequila/drinks, free room upgrades, free travel, free food, free anything, because as we all know, nothing in life is free and you'll find out soon enough if you get involved with a scam like this one. There's a reason why they deny you access to the internet to research the company or time to think about it. If you want more documented accounts of U.S. and Canadian citizens having this very same problem, feel free to read our daily updates at . I guarantee that I'm not alone and what I am saying is real and you will find very little help from the "company" to resolve your issues. The only way to make this issue known is to broadcast it to as many people as possible and that's exactly what I want to do here. Don't take my word for it, read the newsgroups and the media reports.
Sorry about that, (I cant post html weblinks in here)
so goto thesqueakywheel dot com and search for "royal holiday", no quotes
mine is the link that it titled Royal Holiday Lies and Scams.
I don't have my own website, but I can tell you where you could find as much information as you would like about the many people who have been victimized by this company. It's a yahoo groups forum that is ran by the "Mike" that was listed in the original story - groups dot yahoo dot com forward slash group forward slash Royal_Holiday_scam
With a quick, free, registration, you could read what others have gone through as well. I have been a victim for 7 years of their quick words and cunning deception. Like i said, just when you feel like you're getting a great deal, you'll find out just how great it isn't. 7 years....and not one vacation taken through them, not 1 single dollar back, not 1 single registration accepted. I've finally had enough and it's time to take some action.
I've written the "official spokesperson" directly and received a letter back with the denial of anything that i listed above and a denial of the cancellation and refund. So...off into the wonderful world of the internet I go to inform as many innocent people i can so that they don't go through what we all have gone through.
Oh...one more thing. Keep an eye open for 20/20 segment, we've donated a lot of real and truthful information to that cause as well. We're on the edge of our seats just waiting for that to broadcast.
: )
Hi there
I work for law firm in Mexico City, and I had the experience of more than a 100 cancellation from this company. most of my cases are from mexicans with the same problems as you guys feel free to contact me it might be helpfull
Just an fyi -
I sent an email to a ton of friends and coworkers about my complaint page and it's already been hit over 8000 times. I told official spokesperson of RHC that i knew a lot of people and that he would not want me to inform them of the happenings...
Well, there ya go...proof that when i have my head set on something, it will get done. It's only a matter of time and i have the patience to make the rounds!
for anyone who missed it, here's how you get to it...
goto thesqueakywheel dot com and search for "royal holiday", no quotes
mine is the link that it titled Royal Holiday Lies and Scams. (Its the 4th one down)
Still can't post links in here.
: )
Another story, we were scammed in Puerto Vallarta Los Tules, I've sent a number of letters to different agencies & BBB's inlcuding PROFECO, Bank of America- etc.--- no one has been able to help us yet.
they made promises and guarantees that thay never intende to keep.... the produced a gurantee of purchase for our existing timeshare, since we made it clear that would be the only way we could acquire theirs...... we even paid closing costs & property taxes to Mexico
Is their anything else I can do??
please advise
You guys wont believe this....
Read this story that "Scott" just posted about some recent dealings with Royal Holiday club in Punta Cana....
Direct quote from the Yahoo Groups Forum -
"My first experience with RH was in Punta Cana (Mar16/06).Purchased a
Silver Mem.& at the time it seemed like a great deal until you get all
their real contract rules. We had to wait 2 years (Dec/07) & travel in
low season to stay at the Park Royal in Cancun. No free shuttle
service from the airport, better deals if we traveled on our own not
using RH, etc etc. We were approached by a rep(Pique) & we voiced our
disappointment in the total RH experience. He assured us that if we
upgraded to Gold+ status all our problems would disappear. We decided
that the upgrade was not for us when suddenly a new rep
(Nigel/Bernardo) stepped in and started to tell us about all the extra
perks that came with a Gold+ Membership. Here comes all the lies. He
first said that all our money would be put in Guaranteed Bank Annuity
for a term of 30 years. Next he said we would annually for the next
five years receive a dividend of 13.08% (equated to $6516.46 USD) It
seemed reasonable rate of return considering how big a company RH is.
He said something about a "Rent Sure" program where they would buy
back our unused points (still cannot find that program). After I
arrived home, I go on the internet to check out this so called bank
called Granthix( called multiple times no answer & emailed no reply)
& find out it is actually an investment company who may or may not
have your money at the end of 30 years & they would not be submitting
me any dividends annually. I called & left messages with
Nigel/Bernardo voicing my concerns but with no replies so I emailed
him Jan12/08 with still no reply.
At this point I decided to wild card "complaints Royal Holiday" & much
to my surprise there are many of us in the SAME BOAT. I have sent
copies of the contracts /emails etc. to Mariana Olvera @ Profeco,
phoned the Legal Dept. of the Ministry of Tourism, contacted Mike
Barbiero, Esquire 215-735-2166 & joined this website. I reported my
Credit Card lost & believe it or not heard from RH (Mar26/08) looking
for an installment. After spending 3-4 hours on the phone with Henry
explaining my reasons for not giving them any more money & trying just
to get my Silver Status reinstated (since I had not used the Gold+
yet) he just kept on saying "you signed a contract". He finally
offered me a 10000 point bonus to give the installment & said he would
call back tomorrow. He called back 2 days later & asked me what I
wanted & I said "my silver status back" & he said my membership is
being sent to a collection agency. I do not understand why they would
not reinstate my old membership & let me deal with all the crap but
now, after this threat, I want totally out. Any info I can find out I
will gladly pass on & if anyone has any info to bury this scam please
let me know how I can help. I think I should start by contacting local
travel agents about this company. Scott "
I knew Royal Holiday was still up to their old tricks.....
Just keeping innocent folks informed...
Joe Marquez
By the way, just for reference...that was posted to yahoo groups by Scott at Tue Apr 1, 2008 6:25 pm...
I don't want anyone to think i'm digging up old news or anything like that.
: )
Joe
Wow...
Browsing through the web today and I found a few more folks that were scammed in the Bahamas like i was. I was on the ripoff dot com website and did a search for Royal Holiday - nothing, but with Royal Holiday Club, that's when i ran across these folks. I guess it's my turn to add to the mix...
Minnie,
A few years ago, i might have been satisfied with just the annuity certificate, but after reading a posting from an ex-employee, I am going to pass on that and continue to push for the cancellation and the partial refund of my cash.
I will never feel like Royal Holiday practices good business nor do they care for their consumers who have tried to be friendly and tried to use their services. They're bottom line is fed by those who have been scammed for 10-15k dollars for the useless point category and they won't let up until enough people have exposed them for what it really is.
Joe Marquez
Hello, yes, I meant the ripoffreport.com website. Sorry for the typo...
Oh, by the way, anyone that missed the 20/20 episode, here's a digital version of it...
http: // www.youtube.com /watch?v=DAUDBwx5rAI
omit the spaces and it will come up...this was a glorious weekend!
How it was documented was how things went down in the Bahamas too and I would bet that others that went through it will testify of the same treatment. What was supposed to be a 90 minute presentation, turned into a 5 hour, frustrating waste of a day. We're getting closer, I'll elaborate more on this later...
Thank you : )
Joe
At this time, I am stating that my complaint with Royal Holiday club has been resolved.
If able, I would like to request my postings to be deleted...
If not able to delete, then my final post is:
ALL complaints made by me against RHC are hereby resolved via an agreement made between the company and myself.
Thank you
Joe
I am not sure if this site is still active, but if it is-please help! We recently bought a "membership" with RHC and got screwed- like many others. We have only paid the installation fee, and we want out. No one will call us back, make it right, etc. What are our options??
My wife and I were tapped by Royal Holiday off Cable Beach at the Sheraton in Nassau, Bahamas Jan 16 by RHC. Offered a free lunch (it was pretty poor) and a gift certificate (snorkel dive, which was great) we were sucked in to what was described as a 90 minute (really 2 1/2 hour) presentation of a pressured sales pitch.
The clues were clear, although they took a while to develop -- the tour was magnificent: but when they began to talk details, to try to personalize the pitch, it sounded "too good to be true". This takes a while to play out because the important numbers are not presented until the end.
The other clues have to do with the price and the product, both of which are moving targets. As we indicated our need to "do our own independent research" on RHC the price of our product was lowered and ite scope improved several times. We were subject to speaking with 5 different sales people in the course of the last half hour.
When we finally were allowed to graciously extricate ourselves by dealing with a very sad man who let us go, the scam became clear.
A little Internet research revealed both 60-Minutes and 20-20 programs and a Better Business Bureau rating of "F" for RHC, as well as a wide range of scamming stories.
Stay away from this fraudulant company at all costs!! We were scammed out of $21,127.00
Profeco is on the case.
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I am sorry to say but I got victimized by Royal Hellday and I've been trying to cancel/terminate my membership/contract. I contacted BBB from Arizona (since this is where their collection agency is located) and Florida. I even contacted the attorney general from Florida (if you guys complain to him maybe he will hear us out and investigate Royal Hellday since they have an office there as well). PROFECO (I have not heard anything from them). I was mis-informed or should I say the verbal agreement that I agreed upon was different from the contract that I signed. I just found this out when I receive the bill and astound to find out that I have to pay more, way more that what we have talked about so I called them up, sent those emails and even did the registered mail to cancel my membership but to no avail. Then they call me as if they don't even know that I was trying to cancel my membership and asked for the money so I told them that I want out and they threaten me that they will ruin my credit history, report me to the collection agency.
If anyone has other option on how to get out of the contract/membership please email me or post it here.
Any help will be appreciated.
actually the one in AZ is where their collection agency (third party) located. I just got a letter from them informing me that they will not go after me with any charges for now till i settle the dispute with Royal Hellday (which is a relief). we were in Cancun and it was wonderful in there and now i am having second thought on going back there or any mexican resort. and yestrerday i receive an email and a voicemail from them asking me why i have not paid my balance so iam guessing they are ignoring my phone calls, emails and the mail that i sent them asking them to terminate my contract.
hey, i tried to join th club in yahoo but the moderator does not seems to like me joining the group, i sent them the complain letter i sent to PROFECO and tried to explain my case but seems like i am not getting in, do you know if there is somewhere else i can go to get more input on how to beat royal holiday?
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This is getting ridiculous now, I have been harass by emails and phone calls threatening me about collection agency even though I was informed that the agency will not do anything if the dispute has not been resolved. Is there any other way to do? Can they really have the way to make me pay my balance?
They are liars and Robbers. What can we do to stop them or to crash them. We have to gather together to fight back. The hotel top sales man salary is $200K. --Wrong !
I am learning from you and I will tell more peoples about all time share business are liars.
Tips which their sales man told me:
1. You can cancel your credit card number and stop the payment, as you have over paid and you have a right to stop the payment which you disagree. One of my lawyer told me: simply enough to stop the payment. They can not attack outr credit at all.
2. One gentleman told me he complained on this web site and he gathered more than 50 peoples, then the company returned the money to ask them be quiet.
3. Please write letter to and your credit card company and to attack RoyalHoliday's credit.
4. If you just bought recently or last three months, you can withdraw your money from your credit card company.
ps: We should stay together and fight, and I do not think Goverment should allow this business - they are liar and robber.
I bought my membership years ago, so theres no getting my money back from charging back on a credit card. It wasnt until we started dealing with them that we realized what rip off artists there are. Since then, I am divorced and it is just me. I'm having to pay this "maintenance fee of $465 a year and fees if I did book a vacations. It wasnt such a bad deal when I was married and it was the three of us. But now its just me paying for everything. I dont want it anymore, I want out of it. I think the yearly maintainence fees are a scam and then to have to pay extra to go all exlusive is another way of getting members money. And every time I talk to someone there, I get a different story. I'm at the point of just letting them sic their collection agency on me, after my divorice, my credit is already shot.
I JUST WANT TO GET OUT OF THIS CONTRACT....CAN SOMEONE HELP ME
Shelly
I´m in México City, in regard of your experience with this company.
I represent a law firm in Mexico City, and have the experience of more than a 100 contract cancellations with royal holiday.
I know all the different contracts, rules & regulations and all the defferent programs they sale.
if you´re interested please contact me
rosca200978@yahoo.com.mx
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