'Boutique Resort La Jolla Mazatlan Mexico Scam' Real Estate

Pamela J Turner (96.244.116.131) -

On December 17, 2007 we signed a contract with Boutique Resort La Jolla, Mazatalan for 27, 500 fractional ownership points. We had an addendum to the contract which made the purchase of the fractional ownership points, contingent upon the sale of our previously owned timeshare in Virginia Beach, VA. The merchant had to sell our VA beach timeshare in six months, or no later than June 17, 2008.

We signed a waiver for the 5-day cooling off period, which we found out later was illegal by Mexican law. The merchant required us to make an earnest money down payment of 50% of the purchase price, with a new application for a Bank of America credit card.

The merchant's bank, Santander Serfin, processed the credit card purchase. Bank of America purchased 24.9% of Grupo Santander Serfin in March, 2003. Making the merchant's bank and Bank of America partners. The merchant sent me an email on December 27, 2007 stating, "that the state law in Virginia Beach complicates things for us a little." I knew then that we were scammed. I notified Bank of America, and they said that I had to make the 1% interest payments on the credit card pending the expiration of the contract on June 17, 2008.However, on March 31, 2008 I received a letter from Bank of America, crediting my payments and the entire credit card purchase. One June 10, 2008, I received another letter from Bank of America stating that they had received a letter from the merchant, and they were re-issuing the charges. The merchant failed to sell the VA timeshare, and we canceled the contract as per our option, that was written and signed by the merchant. We submitted the contract cancelation both by US certified mail and email to Boutique Resort La Jolla on June, 17, 2008. Bank of America refused to credit my credit card, and Boutique Resort La Jolla refused to honor the contract. Boutique Resort La Jolla sent us an email on July 21, 2008 admitting, "first of all, you are obviously right, in not being delivered what was promised."

So, even with a signed confession, Bank of America

continued to refused to credit my credit card for the earnest money deposit.Bank of America states that Boutique Resort La Jolla will no longer respond to their inquiries. My Bank of America credit card is a Mastercard. I visited the MasterCard wordlwide network website, and found that Bank of America has arbitration chargeback and other options at their disposal to seek a refund from their partner bank Santander Serfin. Boutique Resort La Jolla requested to be paid the remaining balance due on the fractional ownership points in the July 21, 2008 email. We had to hire an attorney to reinforce our contract cancellation with the merchant. We had to pay the Bank of America credit card charges, or risk being reported to the credit bureaus. We thought that having a written contract would protect our rights. I have submitted PROFECO complaints both directly to the PROFECO office in Mexico City, as well as through the US embassy in Mexico. I have reported Bank of America to the Office of the Comptroller of the Currency, Better Business Bureau of Maryland and Delaware. I have written my Congressman, the Better Business Bureau of Delaware, the Attorney General Offices of Maryland and Delaware. I have been doing my research on the issue of timeshare scams in Mexico, and have found that tens of millions of America dollars are being exploited each year. I plan to exhaust every option at my disposal to obtain a refund of my earnest money down payment. So, just a reminder, to all vacationers, it's not just the timeshare salesmen to be wary of, also be wary of the banks that are in league with them. I believe that Bank of America is equally as guilty of timeshare fraud as is Boutique Resort La Jolla, Mazatlan, Mexico.

Comment #1 Bill (63.176.159.202) -

Gosh! Who on earth would buy a time share anyway.... buy something that gives you rental income!!!

Comment #2 Conor (63.176.159.192) -

A land or a building property would be a great idea for generating rental income

Comment #3 Pamela J Turner (71.166.42.86) -

We decided to celebrate our anniversary on February 9, 2009 at our timeshare at Pueblo Bonito, Emerald Bay in Mazatlan. We walked along the beach near Boutique Resort La Jolla one day, and were very surprised by the amount of construction that has been completed since our visit on December 17, 2007,

when we signed Contract No. 417 with Addendum with Mr. Lobato.

I seem to remember that the model that was shown to us, at that time, was much larger in scale, than what has now been actually constructed. Since our resort is a neighboring property, fellow tourists would stop and ask me if I knew anything about Boutique Resort La Jolla. Needless, to say, I am not a walking advertisement for that particular resort. We will be neighbors of Boutique Resort LaJolla for the next 28 years, so it will be interesting to watch the progress. We love Mazatlan and our timeshare there.

It would be very helpful to Americans, if the US State Department would inform Americans who visit Mexico, that we have PROFECO as a resource, when we have consumer fraud issues, while on vacation in Mexico.

I hope that all you who purchased from this resort, are able to obtain the services that you paid for with your hard earned money. I checked in at the PROFECO office in Mazatlan, while we were there to check on the progress of my case against Boutique Resort LaJolla. The first of three PROFECO hearings was scheduled for February 4, 2009 in Mexico City.

The PROFECO staff informed me that my case is still in progress.

Good Luck to us all!

Comment #4 Marmalade (63.176.159.44) -

I agree with Conor. it would be best to buy a property near a street, just consider a property in a commercialized location. There you can easily have tenants and have a monthly income for doing nothing at all. Just make sure that you background check those who applies for renting your place before letting them in. They might just ruin your property, who knows? Good luck to your business anyway.

Comment #5 Sharon Allen Dison (24.159.192.214) -

There very difinately is a major fraud scheme going on with the La Jolla Botique. I too have had the very same problem as Pamula. I have made several requests to have them contact me, all of which are ignored.

I too paid them earnest money of over $6000.00 and have nothing to show for it.

These people simply are running a scam and getting away with it,

I more than likely will be returning to Mazatlan in 2010.

Most of my time will be picketing that resort.

Every one I know will be told about the problem there and as all of you who frequent that city know, all the American tourists know and talk to each other. It won't take long to put a dent in their sales pitch.

By the way, I have another friend who is having the same problem so there will be double trouble for these folks.

Comment #6 Pamela J Turner from USA (Contact Member) -

Hi Sharon,

I have exhausted every method that I can think of to try to obtain a refund of my earnest money downpayment, since December, 2007. I am still waiting to hear a resolution from PROFECO in Mexico City, regarding my consumer complaint against La Jolla. Just remember that, the laws regarding public rights to protest are different in Mexico. I would check with our State Department before, I start picketing. You may start an international incident, which of course would not benefit Boutique Resort La Jolla,

but could cause possible problems for you.

I was cheated out of my downpayment, but I have

survived unscathed. I will not be a Boutique Resort La Jolla victim-I consider myself a survivor. I think what goes around comes around. I do not believe that Boutique Resort La Jolla will be a long-standing enterprise, because the business operates on deceit and lies with regard to their contracts. I wish you luck in 2010. Mexico is no longer on our travel itinerary.

Comment #7 Oinky (63.176.159.114) -

I have read lots of time sahring deals in Mexico. Actually I do not know the concept in details but I am aware of the scheme.

Here is what time share is:

A timeshare is a form of ownership or right to the use of a property, or the term used to describe such properties. These properties are typically resort condominium units, in which multiple parties hold rights to use the property, and each sharer is allotted a period of time (typically one week, and almost always the same time every year) in which they may use the property. Units may be on a part-ownership or lease/"right to use" basis, in which the sharer holds no claim to ownership of the property.

Comment #8 Pamela J Turner (152.133.7.1) -

Yesterday, we received a letter from a man claiming to represent, Mr. Fernando Lobato, our Boutique Resort LaJolla, Mazatlan, Mexico salesman. The letter states that they are investigating the stories of my timeshare experience with Mr. Lobato, that I have posted on the worldwide web. This is the second notification of possible legal action, that we have received from Boutique Resort LaJolla. Americans are protected under the First Amendment to the Constitution for freedom of speech. My stories of our timeshare sales experience with Mr. Lobato, are documented clearly in Contract No. 417 with Addendum, that was signed by us and Mr. Lobato on December 17, 2007.

On June 17, 2008, Mr. Lobato breached Contract No. 417 with addendum, when he did not sell our previously owned timeshare, and he did not "reimburse all monies given up to that point." The contract stated that if he did not sell our timeshare by June 17, 2008, we could cancel the contract, and we would receive a refund of our earnest money downpayment of $6175.00. Mr. Lobato personally initiated and signed Contract No. 417 with addendum on December 17, 2007. On June 17, 2008 we notified Mr. Lobato by email and certified mail, that we were canceling the contract, and we wanted to receive a refund of our earnest downpayment of $6175.00. We had to hire an attorney to reinforce the cancellation of Contract No. 417 with Addendum, but still we have not received a refund of our earnest money down payment. It is really very simple, we abided by Contract No. 417 with Addendum, Mr. Lobato did not. This business transaction would have ended amicably on June 17, 2008, if we would have received a refund of our downpayment as written in Contract No. 417 with Addendum.

We are now the creditors and Mr. Lobato is now our debtor in the amount of $6175.00.

I believe that contracts are legally binding instruments in both Mexico and the US.

Let The Buyer Beware!

Comment #9 Pamela J Turner (152.130.7.1) - 11/22/09 15:35

"Boutique Resort LaJolla, Mazatlan Mexico Scam"

Profeco notified me that Boutique Resort La Jolla did not send a legal representative to the November 5, 2009 hearing, nor did they send a legal representative to the first hearing in February, 2009. I understand that when the resort does not send a legal representative to the hearing, that Profeco levies a fine upon the resort. I have been trying to find out how the fine schedule is determined. If anyone knows how the fine schedule is levied, I would greatly appreciate your sharing that information with me.

Comment #10 Dave from Washington State (Contact Member) - 01/02/10 15:19

"Botique Resort La Joll, Mazatlan Scam"

We too have had a bad experience with La Jolla.

In Dec, 2008, we purchased a contract for 4 weeks per year in a two bedroom unit for 50 years. A written addendum included the 4 weeks per year in a two bedroom unit for 50 years, as well as other valuable incentives to buy.

In Dec, 2009 when we contacted their office about not being able to make reservations for the 4 weeks, we were informed that they would not honor the addendums (even though the addendums were signed by the same person who signed the base contract). They actually removed the original signed addendums from the contract and replaced them with a new one signed by Ed Chester, who we had not originally dealt with. The contract they are honoring is limited to enough RCI points to cover about 1 week per year in a two bedroom unit during high season. My contract value has been reduced by about 90% by their refusal to honor the original addendums.

Also of concern, the phase 2 project (a five story complex) was supposed to be completed by July of 2009. They are still working on the first floor as of Dec, 2009.

Do not take chance on this time share. Based on my experience, they cannot be depended on to honor even their written contract, much less verbal commitments. There are a lot of better options out there without taking a risk on a company with their track record.

If you have purchased within the last 5 days, contact the local PROFECO (Mexican consumers protection agency). They are located down town close to the cathedral, and have forms that you can file to cancel the contract (regardless of what your contract says to the contrary). If you purchased more than 5 days ago, GOOD LUCK.

Comment #11 Pamela J Turner from USA (Contact Member) - 01/21/10 22:53

"Boutique Resort La Jolla Mazatlan Mexico Scam"

Boutique Resort La Jolla and I have reached a settlement agreement.

Comment #12 RANDY COURTIS (189.186.3.35) - 01/29/10 01:45

"BUYER"

Itīs very simple.... check all the document you have to sing up.

When they say they are going to check your credit, so they ask you for your credit card. they slice the credi card and they charge the ammount even when you didnīt authorized the charge.

If they donīt charge at the moment, they wait a few days whe you go back home and then they do charge it.

If you buy or not, check inmediatly with your bank for charges.

you have 5 bussines days to cancel the operation even if you signed up any addendum.

if you did everything to cancel on time and they give you excuses like... next month youīll see the refound in you statement of you bank, or we donīt have system right now or in 3 more days or whatever... REMEMER.... YOU HAVE 5 BUSINESS DAYS TO CANCEL AND THE HAVE TO REFOUND YOU MONEY NO MATTER WHAT.

If you go there first to cancel you are going to be waisting your time!

GO TO PROFECO!!!! and after profeco, go to ministerio publico agency and let them know that youīve been just scammed, fraud. ( crime in mexico very serious)

Hope this help any one who wants to buy in Boutique Resot la Jolla in Mazatlan.

Comment #13 kingwee from Toronto,canada (Contact Member) - 03/13/10 12:19

"Scams continue at La Jolla in 2010"

Our Story is almost identical to PJT above.

In December 2009 La Jolla agreed to sell an existing time share of ours with the additional funds of 10k to complete the deal .The usual Fractional TS points for 50 years deal claiming it would be equivalent to one week with RCI at high season at any RCI resort in Mexico. As well the deal included a lifetime membership to HSI another vacation club. Not wanting there financing we used our own CC and paid in full.

That same evening we changed our mind and seeing these posts we went straight to the Profeco office in Mazatlan 36 hours after the deal was signed. We filed as per Profeco guidelines. Upon returning home our Credit card company did refund the amount only to have La Jolla resubmit the fee 2 weeks later.

Profeco sent us an email requesting we again send the documents by email we did. They sent back an email stating the documents were not legible when printed. We sent again the documents to Profeco by registered post.

I received an email 2 days later from Profeco stating we needed to respond in 5 days or the file would be closed pursuant to Mexican law. I emailed every day after their email stating our intentions and stating we have again (the 3rd time) sent the papers by registered mail. The next day we received another email from Profeco stating they have closed our file for lack of communication on our part.

I have sent many emails since and it seems they refuse to acknowledge our correspondence. Phone calls only get no answer or busy.

We have NEVER heard from La Jolla or HSI since our experience in Dec 2009

They simply stole our 10K!!

The Bank won't help, Profeco won't help

This is not a consumer / merchant negotiation of contracts issue... it out and out theft

Possibly an internet campaign like PJT would work

Any advice would help

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