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Royal Holiday Club Complaints & Reviews - U.S. State Department warns against Mexican scams

Royal Holiday Contacts & Informations

Royal Holiday Club

Posted:    Richard Carzona

U.S. State Department warns against Mexican scams

Complaint Rating:  92 % with 76 votes
For those looking into doing business with Royal Holiday, vacation clubs are timeshares. Read below and then research Royal Holiday complaints:

Purchasing Real Estate and Time Shares.

U.S. citizens should be aware of the risks inherent in purchasing real estate in Mexico, and should exercise extreme caution before entering into any form of commitment to invest in property there.

Investors should hire competent Mexican legal counsel when contemplating any real estate investment. Mexican laws and practices regarding real estate differ substantially from those in the United States. Foreigners who purchase property in Mexico may find that property disputes with Mexican citizens may not be treated evenhandedly by Mexican criminal justice authorities or in the courts.

The Mexican Constitution prohibits direct ownership by foreigners of real estate within 100 kilometers (about 62 miles) of any border, and within 50 kilometers (about 31 miles) of any coastline. In order to permit foreign investment in these areas, the Mexican government has created a trust mechanism in which a bank has title to the property, but a trust beneficiary enjoys the benefits of ownership. However, U.S. citizens are vulnerable to title challenges that may result in years of litigation and possible eviction. Title insurance is virtually unknown and untested in Mexico. In addition, Mexican law recognizes squatters' rights, and homeowners can spend thousands of dollars in legal fees and years of frustration in trying to remove squatters who occupy their property.

American property owners should consult legal counsel or local authorities before hiring employees to serve in their homes or on vessels moored in Mexico. Several American property owners have faced lengthy lawsuits for failure to comply with Mexican labor laws regarding severance pay and social security benefits.

American citizens should exercise caution when considering time-share investments and be aware of aggressive tactics used by some time-share sales representatives. Buyers should be fully informed and take sufficient time to consider their decisions before signing time-share contracts, ideally after consulting an independent attorney. Mexican law allows time-share purchasers five days to cancel the contract for unconditional and full reimbursement. U.S. citizens should never sign a contract that includes clauses penalizing the buyer who cancels within five days.

A formal complaint against any merchant should be filed with PROFECO, Mexico's federal consumer protection agency. PROFECO has the power to mediate disputes, investigate consumer complaints, order hearings, levy fines and sanctions for not appearing at hearings, and do price-check inspections of merchants. All complaints by Americans are handled by PROFECO's English-speaking office in Mexico City at 011-52-55-5211-1723. For more information, please see the PROFECO’s "Attention to Foreigners” web page at Profeco (Procuraduría Federal del Consumidor).

Avoid Disputes With Merchants. Be a Careful Shopper.
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 30th of May, 2007 by   Olivia Hernandez 0 Votes
This is important, lets pressure law makers to make the airlines and travel agents give this to travelers.
 31st of May, 2007 by   Sue Lovejoy 0 Votes
I wish I had read the U.S. State Department web site before traveling. Who does that? I will now.
 31st of May, 2007 by   Sue Lovejoy 0 Votes
I don't understand why the State Department does not do more to get this information out since there is so much that has to be done once the complaints are filed.
 31st of May, 2007 by   Sue Lovejoy 0 Votes
This should have been given to us by our travel agents.
 2nd of Jun, 2007 by   Sal Garcia 0 Votes
Why don't we get this before we are scammed? This reinforces the fact I am screwed, but it would have been nice if my travel company had sent it to me when I booked the trip.
 9th of Jun, 2007 by   Larry Heftner 0 Votes
I would hope that the State Dept. would take this more seriously and distribute the warning on airplanes to citizens who need to see it before they become victims. Seeing this now is not doing me a bit of good.
 22nd of Oct, 2007 by   Ron Thompson 0 Votes
I was CONNED out of 10,000.00.Royal Holiday Club representatives are LIARS and should be run out of business.They are professional SCAM artists and the traveling public should be fully warned NEVER to do business with those CROOKS!
 10th of Dec, 2007 by   H. Betancourt 0 Votes
ROYAL HOLIDAY CLUB IS A FRAUD August 22, 2007

My girlfriend and I went on vacation to Ocean Bavaro Punta Cana, in the Dominican Republic on August 2006 and we were also scanned by the RHC representatives.

After wasting an entire day listening what the RHC program offered we decided that we cannot afford to be members and besides we do not travel anywhere else but to the Dominican Republic because our family lives there so we invite them to stay at the resort to spend time with us. We kept saying no, no but they kept putting pressure on us.

We were assured that wasn’t a problem so they would make us a deal that will be affordable for us for the amount of $9,000 and that we will receive 10,000 points for one year plus they will give us 9 days to stay at any resort in Punta Cana with the best hotel which are 5 stars, the best room near the beach, entitled to eat in the best restaurants and overall have the right to invite our family at no cost since we were members They also told us that they have their own travel agency in NYC and the airfare will cost approximately $300 for person and will save approximately $700. We were like “wow”. They said that we would stay at the best hotels 5 starts going around the world. It was too good to be true. They never mentioned the 5 day cancellation period to us. Upon signing the contract we noticed the contract was written in Spanish but I do not read in Spanish. I asked for an English version but they said were out of the English version and once you get back from your vacation just call Royal Holiday and they will mail you a copy of the contract in English.

We decided to see if maybe we will get for what we paid for, boy we were wrong. We realized the value of the 10,000 points was not what was described to me. Many of the destinations were well over 20,000 points per week – with many restrictions – making the two weeks per year virtually impossible. You could do two weeks per year if you went to certain locations during non-peak times (but, this wasn’t how the plan was described, and this wasn’t travel flexibility). The value of the plan was definitely not as described or promised.

After we arrived to the City of New York, we made many phone calls asking RHC to mail us the English version of the contract to our home. We have spoken with Francisco Perez on October 10, 2006, Omar Miguel on May 2, 2007 Gregg Brown May 16, 2007. Mónica Espinoza June 7, 2007 and many others RHC representatives that we cannot recall now, and all they promised they will send us the English version of the contract in 10 days. At this point we are still waiting for it. One year later I was finally able to obtain a copy of the contract in English by going personally to Royal Holiday Club in Punta Cana, Dominican Republic one year later. After waiting for more than one hour outside on the front gate finally I was able to convince them to provide me with a copy.

This year we wanted to take a vacation through our membership so we call the RHC in Arizona and it was indicated to us that we must contact the RHC in the Dominican Republic. To our surprise after spending on calling cards and money to get in touch with the RHC in the Dominican Republic we were told that we have to pay $80.00 per room without meals, that they do not have any travel agency in NYC, and hat we have to pay for own taxi from the airport to the hotel. So we could not even use our share. It was cheaper through a travel agency than through our membership with RHC. We were furious and for our next vacation we ended traveling with Apple vacation which it comes out cheaper than using the RHC services. After paying up more than $6,000.00 we have decided to stop the payment to RHC. We have been robbed. RHC has misrepresentation and high pressure selling practices, failure to disclose conditions of the offer and verbal representations not consistent with written terms of the contract.




We are going to fight to get our account closed and to get our money back and to let other people know about this big RHC scam but we need more information in seeking legal assistance. We spoke to our Union lawyer in NYC and after she looked over the contract she has indicated to us that we have not jurisdiction because the contract was signed in a foreign country but because the collection office is located in Arizona the office of the attorney general will be able help us.

Here are some of the RHC names who have misled us:
Omar Miguel, Francisco Perez, Mitchell, Joe Mercado, Greg Brown, Fernando Perez, Lisa Haranda, Mónica, K. Vilorio.

IMPORTANT!!!
We recently learned that all complaints in this regard should be forwarded to the office of the Attorney General of Florida at The Capitol-PL 01, Talahassee, FL 32399-1050; phone: 850-414-3300. That office has already been receiving many complaints against the RHC, and if it continues to receive more, it will take action by bringing a lawsuit against RHC. So we encourage you to please report your complaint to the office of the Attorney General of Florida-- the office has assured us that RHC DOES fall under its jurisdiction and the office WILL take action if enough complaints are received.
 13th of Jan, 2008 by   Scott Preiss 0 Votes
I only joined less than two weeks ago but I already have our nightmare. We were totally mislead and not given truthful information. We are going to send a letter tomorrow to the Attorney General in Florida, Profeco and other agencies. Does anyone really know who is the main company of responsibility? As you read through their materials they mention Mexico City, Switerland, Miami, FL and Arizona. Any advice would be appreciated.
 7th of Feb, 2008 by   Helen Woodland 0 Votes
I reported Royal Holiday to the Florida Attorney General and the BBB in Florida a year ago and they did absolutely nothing. Unless they have received more complaints, they basically told me to get lost. The BBB tried, but RHC is not a BBB member, so they could not do anything. I ended up settling with them - They would remove the deragotory information from my credit report if I agreed to let them keep my $10,000 for no services. They completely ruined my credit. I agreed to their conditions to get my credit back. Basically, I was blackmailed.
 3rd of Mar, 2008 by   ANNONIMOUS 0 Votes
I used to work for Royal Holiday Club, in the corporate office in Mexico City, not Miami Fl, like they lead you to believe. Unfortunetly I agree with all the complaints that are presentated on this page. just to let you know, all of you guys that have that infamous "anuity certificate" that your sales rep said would return your money after 30 yrs, well... its not true, in the history of Royal Holiday there hasn't been one single "anuity certificate" been cashed and the "bank" that holds your investment doesnt even exist, If you dont believe me, just try calling someone from that "bank" (the tel number is in the back of your annuity cert) and i assure you will never get an answer, and if you are lucky and you do get a call back, is more than likely to be a reservations agent from Royal Holiday. I would suggest you either sell, rent or give away your membership before it eats you away. Oh... and to all those people that think of reporting Royal Holiday to any American/Canadian Agency, dont waste your time or any more of your money for that matter, it's not going to do you any good. The U.S government or law has no jurisdiction in Mexico or the Caribean were all of the Royal Holiday sales take place, why do you think that they dont sell memberships in their U.S resorts? Anyhow, Royal Holiday is not THAT BAD, you can actually make business out of it, well if you are smart about it ofcourse, you can sell vacations using your points to friends, family or co-workers, just advise them not to make your same mistake, you dont want to see them back home with a 5,000 point membership that is not even good to cover for a decent family vacation. oh...and to all of you guys that complain about availability, please take into considerations the following points:
1)the amount of points you have (having 5,000 points does not make you a v.i.p when there is someone else that has payed a membeship for 100,000 point, yes, there are people that pay more than 100,000 usd and are happy with RH)
2) seasons (for more availability go during months no one else is vacationing)
3)locations (its not the same going to the bahamas than going to hawaii, therefore is not going to cost you the same)
4)amount of people vacationing (please dont try to squez a family of 10 if you only have 5,000 points and can only afford a room for four people)
5)room accomidation (again, with a petty membership of less than 30,000 points, you are never going to see what a presidential suite looks like, sorry..not happening)
I truly feel your frustration, i had to deal with all of your complaints for 2 yrs, as a former NEW MEMBERS agent, if you want things done, you have to be super persistent and super duper NICE, most of the sales and reservations agents that RH hires hate the gringo ego and gringos in general (AMERICAN/CANADIANS)
Currently I am located in the South Florida Area, if you need any more specific info on how to make your membership to good use, in other words, how to beat the monster known as ROYAL HOLIDAY,you can email me to
lori.lu.02@hotmail.com

I charge of course, hey... i have to pay my way to college, nothing personal, just business
ANNONIMOUS
 1st of Apr, 2008 by   Sherina 0 Votes
My fiance and I were approached in Bali by the royal holiday club, a scratch card I had won a free week's trip to a royal resort in Bali or Goa and I had to spend time at their seminar so I listened and I liked what I heard, I already started signing on the dotted lines but we both had a bad feeling about this, and then my fiance and I started to see the finer print (hidden costs that nobody mentioned) so we pulled out immediately and their consultants became somewhat agressive about us declining - I'm so thankful looking at the stories above. I still have this trip that they've said that I won, but the terms and conditions give them the right to cancel my acomodation and move me some place else once I'm in Goa! I also need to listen to their sales schpeel again when I go to their hotel. Based on their reputation, I have to wonder if i can even trust going all the way to Goa- India on their invite!!
 11th of Apr, 2008 by   Patel Family 0 Votes
Here's a complain letter sent to Royal Holiday management on 7th April'08

We became member of Royal Holidays Vacation Club during our trip to Cancun in May 2005. We were very concerned about signing up for membership, and only agreed to purchase membership after we had several unique terms and provisions added to the contract, which were agreed upon by your company's management. Once these stipulations were added, signed up for Gold level paying US$15, 000 for the membership. We have included copies of the contract addendums for your ready reference.

Since becoming member we have regularly paid our annual fees and other asked for dues, but have been totally disappointed with our experience. Numerous attempts to book a hotel were unsuccessful as we were told either the dates were not available or hotel/resort was fully booked. Every time we have contacted you to make hotel/resort reservation since becoming member, we were unable to get accommodation through your network. One of the conditions agreed upon was to provide us with other comparable hotel/resort in case of non-availability within the Royal Holidays network. Unfortunately we were never provided such accommodations, which made us spend money outside of the club on our vacations.

As such we have been unable to use any of our accumulated credits. We had called last year and told your representative to roll over all of the unused credits since from 2005 to 2008, but to our surprise we do not see them in our account. As per our contract terms, we should have all unused credits since our membership, and not just those from the previous year.

We would like to get all the unused credits placed back into our account. Upon seeing this reflected in our account, we will immediately pay the dues for this year (2008) and truly hope that starting this year we will be able to make reservations using Royal Holidays. We hope to see positive action from you. Please write back or call us to inform us. Thank you very much.

As of 11th April'08:

Just called and spoke to David at 1-800-961-1810 x 2620 and tried to resolve the issue but employee was rude, ignorant and arrogant. Tried to book resort in Miami and was as usual told its NOT AVAILABLE. You have to plan vacation like 6 months to a year in advance. When we signed up we were promised to be able to book as early as 2 - 30 days in advance. Also were assured to find alternate resort/hotel if they can not find one on dates preferred.
Today on the phone their representative David acknowledged as an alternate you could call Travelocity, Hotels.com or sleep on the road. Can you believe it? This company is total FRAUD. They misrepresent and lure new members into what I see as SCAM !!
 2nd of Jun, 2008 by   C A 0 Votes
Hi to all!! I'm from Mexico, and also have an horror story from RHC.
I live in Matamoros, Mexico across the border from Brownsville, TX and in my case the people from RH contact people trough credit card usage and contact you to your home phone inviting you to a meal and a complementary week on a beach resort of you choice.

After few hours of heavy brain wash of convincing, you finally sign the contract just to find out that all that you've heard previously is a lie.

One item on the Mexican contract (I don't know if the English one is the same) is that there only two ways that the contract can be revoked:
1. During the first five working days returning all the information received from them, and sending a letter asking for the cancellation to the local office, to the legal representant and to Mexico city.
2. Only when the condemned I mean the client, fails to pay monthly/yearly the payments and the company has all the right to cancel the contract and KEEP all the money already spent.

Of course I've tried the first option traveling to Monterrey, Mexico (the nearest city with RH Offices) and as you can guess they refuse to cancel the contract at that time telling me that it has to be checked first...

By now I escalated the issue with profeco, waiting to fix this issue up, I'm sure that many persons are victims of this kind of ripoffs and the only thing that we can do in a future is be more careful and tell all our friends/family not to fall with this kind of fraud
 2nd of Nov, 2008 by   M Lewis 0 Votes
Royal Holiday club is a scam. They have defrauded thousands of people out of a lot of money. They do not deliver what they promise and hold our US SS numbers as hostage. They obtained these numbers when they ran credit checks on us after they brainwashed into purchasing with lies and false promises. Their hotels are always booked and their customer service is non-existant.

I encourage you as well to file a formal complaint to the Attorney Generals office of Florida
Capitol Pl 01
Talahassee, Florida 32399-1050 and do it now!!!

We need to bombard them with complaints so they will take action against this fraud company.

MLewis
 21st of Jan, 2009 by   FrankX 0 Votes
My wife and I were tapped 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 Mexican Better Business Bureau rating of "F" for RHC, as well as a wide range of scamming stories.
 4th of Feb, 2009 by   pinoi2 0 Votes
Any word on how to cancel/terminate the contract signed? Tried everything (from filing complaints to BBB, FL - attorney general, PROFECO and even FTC), they called me and when i told them to cancel my membership they treathen me that they will ruin my credit history (which they did the first time when they tried to get money from my credit card), and they even told me that the collection agency will be in back the whole time harassing me.
Please if anyone knows how to cancel/terminate the contract/membership, i really need to know.
 24th of Apr, 2009 by   jpgaudreau 0 Votes
While we were on vacation in December 2008 (November 28th to December 5th) in Cozumel my wife and I were approached to visit a resort and get a free lunch in exchange to visit the resort with the pretense that the resort was just rebuilt after the huricane and they wanted tourists to rediscover it. So we went.

What we got there was a sale pitch for a "holiday membership" with which we could travel the world for the next 30 years with our travel cost fixed (not getting higher year after year). After three hours of talks where the offers seemed always better and better, we signed... The worst mistake ever.

We signed a contract for 30 years, for 30 000 points per year, for 25 0000$US of which we a downpayment using our credit card for 8 750$US, having to pay 450$US per month for the balance for the next 3 years.

Almost immediatly that same night we started to have second thoughts but we decided to sleep on it. Before leaving Cozumel, the day after, we call their help-desk from the airport and told them we wanted to cancel. But they told us they could not do it yet because the contract had not been processed yet and was not in the system. They told us to call back when we were back home.

So the next Monday I call back, and still the contract was not in the system. I tried calling again during that week and finally I did receive an e-mail on December 20th sending us our password to access the site, stating that we had requested it! I call the helpdesk and they told us that they can't cancel our membership because we were passed the 5 days cool-off period!!!

During the Christmas holidays we were not able to contact anyone and then in January someone in Finance (Nancy d'Argence) contacted us to welcome us to the club. I told her I wanted to cancel my membership but she told me she could not do anything for us except refinance. So she gave us a refinance offer which would have cost us thousands of dollars more in the end (for lower monthly payments). We refused.

She then said that the only thing we could do was to resell our membership. And when we bought the membership I specifically asked if it was resalable and they told us that they sold easily, quickly and for a profit. So she gave our names to their sales department which in turn gave them to a broker in the States (Global Resort Services), which contacted us. I talked to the broker and they told us that we could get 29 000$US for our membership! Wow, we're even making a profit. We had to pay 600$US for the account and the publicity they would put out.

I called the broker about once a month but nothing was happening. So in April I started to do more researchs on the Internet and realized that there were a lot of people in the same situation as I was and moreover the only information I got on people that had been able to resell their membership was for about 10% of the price!

So I'm now in communication with a law-firm in Mexico that specialize in this kind of rip-off (I can't tell their name yet because I still not on a retainer with them).

So this is was they promised us: fixed vacation cost (about 2 weeks) for the next 30 years.

This is the reality: you have to pay an annual fee (465$US now) that can and will go up with the years; you still have to pay for your food, which will go up; and finally you reserve based on a point-basis, so today with 30 000 points I can get 2 weeks, but in 2 years it could cost me 40 000 points. Plus they told us that we could easily resale our membership for a profit, which is false. And finaly they told us we had 5 days to cancel but we got the turn-around with their helpdesk until it was too late.
 21st of Jan, 2010 by   Ethan Gerry 0 Votes
My parents are the victim of Royal Bali Resort, they have paid almost USD 15, 000 for nothing. Anyone knows how to cancel the membership ?
 10th of Mar, 2010 by   Marina K 0 Votes
People that work for ROYAL HOLIDAYS are extremely rude and annoying! You cannot book anything there, other than the all-inclusive resorts in Mexico, which also charge the all-inclusive charge of $60-80 per person per day, when I called and tried to book anything, I would get same response that the place/dates were allready booked/unavailable. I had decided not to make any more payments after unsuccessfully trying to book numerous hotels at multiple destinations for the past 6 month, some hotels a year and a half in advance!!! Now that I am past due, they are so agressive because they know they will not get any of my money, they call non-stop, morning, day and evening, threaten the collection... Besided calling my cellphone from different numbers throughout the day, they also call my work number at least 25 times a day and leave numerous messages with the secretary and on my voicemail and promise to call all my co-workers and tell them about my debt. Now I find it extremely annoying and disrespectful!!! INVASTION OF PRIVACY is apparently a term not known those people, who want to humiliate me in front of my colleagues. I need to know how and where to SUE THEM FOR HARRASSMENT!!! I do not want this membership, since everything that I was promised, including discounts on airfaire, free airport pickup and hotelroom upgrades is a complete lie and am not planning on speaking to them regarding this! When we signed up for the membership in November 2009 we were promised 2 seven day cruises from a vendor other than Royal Holidays, but when I called the cruise vendor, I was told that they discontinued their membership with RH in 2009. We were promised destinations such as Tahiti and Bora Bora, which are not available at all, not even through RCI(booking through which also has a fee, which we were never told about) and there are ADDITIONAL FEES, whethere they are all-inclusive or certificate activation. If I paid all the last minute certificate activation fees, it would total roughly $10, 000.00 in addition to my $10, 000.00 membership, besides the yearly maintenance of $465.00... Plus the all inclusive fees, and it is ACTUALLY CHEAPERto go on vacation any time, anywhere, IF I BOOK ONLINE, and not with them. Hopefully they will shut them down and pay the poor scammed people their money back!!! I feel sorry for everyone who has to deal with that... And good luck!

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