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Club Velas Vallarta / Lies, scam and rip off!

United States Review updated:
98% 56
The 90 minute presentation we attended turned out to be between five to six hours. Once we got down to signing the contract we were rushed through to "get us back on vacation." We were told the timeshare we were buying was previously owned and therefore we wouldn't have the right to rescind. Violation of Mexican law.

The sale of our existing timeshare was a condition of purchase at Velas Vallarta. The salesperson misled us about the guarantee to sell our existing timeshare for $60,850. We didn't get the guarantee until we were leaving after signing the contract. The guarantee was for no more than to list the property for sale for $60,850.

We talked about the RCI bonus weeks we were getting. We talked about the cost of $169 or $189 a week. Nothing was said about having to pay maintenance fees first.

We were told we were getting a $80,000 annuity. We then found later it was an "anticipated" annuity.


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A  22nd of Jan, 2007 by 
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We went to the presentation at Velas Valarta to get our free tickets and had no intention of purchasing anything as we already own a timeshare here in Minnesota. We explained this to the first salesperson we spoke with. She asked us if were interested in a timeshare in addition to or instead of our current time share. We said instead of as we did not want or need 2 timeshares. She then said we should talk to the "trade in manager" Ken Waller. Mr Waller went on and on with numbers, drawings and said he had a broker that might be interested in buying our existing timeshare from us. He went away and came back and said he had spoken to his broker and they had made us an offer on our current timeshare. He also said the broker would buy 3 of our Velas weeks for $2110.00 a week. This was a good deal and we foolishly signed on the dotted line. Like all of you, we were told the timeshare we were buying was previously owned and therefore we wouldn't have the right to rescind.-Not true.

When we got home we got a letter from a company by the name of Regal rentals and resale saying they were going to list our property not purchase it. Never in our conversation with Mr. Ken Waller did we discuss listing our property. It was always purchase our property. We made it very clear we did not want nor could we afford 2 timeshares. Upon receiving this letter from Regal we immediately e-mailed Ken Waller and Regal. This got no response. We then sent a letter to both parties. Mr. Waller called and for 20 minutes he spun the truth around, quoted passages in our contract and said we must have “misunderstood” him when he spoke of the fate of our current timeshare. He was loud, obnoxious and would not let us get a word in. His behavior was actually comical. We asked him if he ever Googled himself- this actually got him to shut up for a minute. He had a few excuses, told us to talk to our lawyer and then hung up on us. We received an E-mail from a Johnny Noe which was just as pointless as our phone conversation with Mr. Waller.

We have sent letters to Velas Vallarta, Regal resale, Visa and, The Mexican Profeco advising them that we would not pay them a cent and demanding a refund of our down payment. If we do not get a written release from our contract and a refund of our down payment we will be sending out mass e-mails to travel agents, news media, travel clubs, and state and government offices.

If you have had run-ins with this place please respond so we can all keep in contact. I am all for a class action lawsuit.

N  14th of Dec, 2016 by 
Agree Disagree 0 Votes
@Valerie Valerie, We had a similar circumstance with Ken Waller, Velas, Johnny Noe, and the resale company on our timeshare which we bought in 2005. We just started researching for complaints on Velas and found this website and your post, among the rest that are listed here. We are very interested in being involved in a class action lawsuit. Please contact us at Lrusscampo@triad.rr.com. Thank you, Russ and Linda Campo - North Carolina.
N  20th of Dec, 2016 by 
Agree Disagree 0 Votes
@Valerie Our issue dates back to 2006...realized it was all a pack of lies and empty promises but have paid the $50 per year usage surrender fee to NOT use the unit...10 years down...10 to go. If this progresses to a fraud suit count me in... kjoverson@mchsi.com Thanks!!
A  30th of May, 2007 by 
Agree Disagree +1 Votes
My husband and I were also pulled into this scenario... We have a time share already and foolishly we purchased at Velas... There was no talk of a maintenance fee and yes, we were also guaranteed a sale through regal. No offers have been made for the sale of our previous timeshare. No offers have been made to rent out our weeks at Velas. And get this one... My husband asked for documentation recently about the annuity. We got sample copies (no big deal). However, when we asked for the web address, they gave us one. But nothing existed online. We called back to find out what the error. The company said they'd call us back with an answer. They called back a week later, and magically the website appeared!

Imagine that, the Mexican Mafia are now richer!!!
A  6th of Jun, 2007 by 
Agree Disagree 0 Votes
We purchased one of the fractional timeshares 16 May 2007 and things started unraveling quickly for us as I found out there they do have maintenance fees and selling our condo for anything in the ball park where they "appraised" it is ludicrous. They crossed the legal line, however, when they lied about a 5-day cancellation period telling us this didn't apply to us as we were purchasing a program that had been turned in by someone who had bought up. We found out on the internet that is illegal and we were entitled to the 5-day cancellation period. Had we known that we would've been investigating a lot faster. I even had a call from one of their contract folks a few days ago who still insisted we didn't have the 5-day recourse. They also told us if we financed on their MasterCard plan, we had a 6-month cancellation period which is why we didn't act more quickly to determine if we were being scammed -- however, they failed to mention it would cost half the price of the condo to cancel during that period. During our discussion with them they gave us "contract pages" to read and initial, but we never saw them again and therefore were lulled into a false sense of security that they reflected the real contract. I know -- big mistake on our part. We intend to take any action necessary to bring awareness to their practices. It appears our first hope of recourse is through profeco (the Mexican Government Agency who looks into these things), who we filed a complaint with that should be reaching them any day. Fortunately we didn't buy into the annuity. If you've gone on line much you'll find that the Mayan had a huge scam that appears is being resolved; the problem came to light with all the unhappy scammed folks finding each other on the internet and one hero (in my eyes) actually devoting a web site to the problem. AS OUR NUMBERS GROW, WE CONCUR WITH THE THE COMMENTS POSTED BY THE KNUDSENS. LET'S KEEP IN TOUCH AS WE MAY NEED TO LOOK INTO A CLASS ACTION LAW SUIT, AND/OR SET UP A WEB SITE TARGETED AT THIS RESORT SCAM.
A  7th of Jun, 2007 by 
Agree Disagree +1 Votes
Went to the presentation on May 20, 2007. Told we would get 25 Velas Vallarta weeks that we could rent over a 5 year period. We would also get 58 HSI weeks that we were told (about 15 times) were for any property in any one of the three books the salesman showed us (Conde Nast, Leading Hotels of the World, and one other). We located one property and I asked for the HSI phone number so that I could call and verify right then that the property would be available to us. He said he would do it. Left the table and came back with a fax that said we could go to the property for 899 per week. Also made to sign the waiver of the 5 day cancellation period. Finally contacted HSI myself and the 58 weeks are only for use at an HSI condo. The property that the salesman produced the fax for is unavailable from HSI. I emailed and sent via UPS a letter stating that we considered the contract null and void and asking for a return of the deposit. Also contacted DiscoverCard who is removing the charge during the period of investigation. (It had not hit our statement yet) DiscoverCard also submitted a request to Velas Vallarta for a return of the deposit. Too early to determine final disposition, but it completely ruined the fantastic memories of a great vacation at Casa Velas. I would advise EVERYONE to stay away from these resorts for this reason alone.
N  20th of Jul, 2007 by 
Agree Disagree +1 Votes
Velas Vallarta has now settled our complaint by giving us a full refund.
A  13th of Oct, 2007 by 
Agree Disagree 0 Votes
Dear Mr. Ken Waller lied to us too at Velas Vallarta back in November 2006. I did bring home when he was not looking a couple pages of his scribbling promises... We unfortunately got caught up also in the purchase of 12 weeks, yes only 12 weeks for $10,325.00. We were sold a complete bill of FALSE goods. When we got home and called to complain, Johnny Noe said all he could do was refund us a couple thousand to hopefully make us happy and also promised an additional 2 weeks free with RCI. (we have tried to find out how we get those and no one has returned our calls, that too is probably a joke.)

In the meantime, we also paid $660.00 to Regal (what was wrong with us, got duped again) and told by the ever wonderful con man Mr. Ken Waller that they would have our timeshare weeks all sold by May 2007. Well it has come and gone and I called Regal and got the "oh, we will try to sell your week remark"... still here it is Oct. 2007 and nothing. Is Mr. Waller getting a "kick back" here from Regal? I think so.

We were conned into the the GOLD/RED fractional ownership, first use to start 2008 and maintenance of $470 a year. This is for 24 years, 2 week every even year for the total of 12 weeks. Of course 40 weeks with HSI was added to that (we thought that was good until we got home and found out again we can only use HSI's , that is a joke and 1 year membership was given with RCI paid. We also were told the timeshare we were buying was previously owned and therefore we wouldn't have the right to rescind. We were getting this wonderful deal Mr. Waller said. RIGHT

Mr. Waller bragged about his huge income and how he loved working for Velas Vallarta. No doubt, he is conning his own US of A citizens left and right. We are very much in debt and can not afford to pay the maintenance this year. So we were told we could sell our week back for $50, and I am not sure even that is true.

This was the first timeshare and the LAST we will ever buy. We are not rich people, we work and struggle daily to pay our bills and we were totally tricked into a whole list of lies from Mr. Waller. I hope he can sleep at night.

We are now in debt trying to pay off our credit card for over $7,000 and interest adding up each day. We can not afford the maintenance fee coming due in Jan 2008. We were able to take the trip with our kids last year because we stayed with them free, they have timeshare weeks through WESTIN CLUB REGINA (RAINTREE) and LOVE their timeshare. These people sell with honesty and integrity. Unfortunately, we have learned a very tough lesson. I wonder if Johnny Noe can sleep at night too knowing what is happening to people like us.

We want to sell, but it looks like we would be lucky to get $2,000. at all. What a tough lesson for us to learn and take years to pay off this debt.

I am willing to join a A CLASS ACTION LAW SUIT!
A  13th of Oct, 2007 by 
Agree Disagree 0 Votes
We unfortunately signed a contract on 10/9 which after reading all of the complaints is too good to be true. We are still within 5 - days so hopefully we can cancel everything.

I had called our resort in Florida to ask for advice about turning over our timeshares and she was very skeptical about them buying our timeshares and said if they didn't record the deed then we would still be responsible for the maintenance fess. This was the whole reason we bought into all of this was to dump 4 weeks and consolidate. Our paperwork is all messed up and lists the wrong week number.

When I called to advise them no-one called me back which is why started checking for fraud. I canceled the cc deposit and card claiming fraud and the 5 day rescind rights and I'll send
registered mail on Monday. Hoping to get out if I'm lucky.

If anyone has had a positive experience with them I would love to know.

A  5th of Nov, 2007 by 
Agree Disagree 0 Votes
We have a very similar situation and have not had any real luck getting our money returned. We would be interested in knowing about any pending class action suits. The Names Johnny Noe and Ken Waller along with Regal are also in our situation... The promised rentals never happened and we are now in a similar situation to those above.
N  29th of Nov, 2007 by 
Agree Disagree 0 Votes
ANy suggestions on selling a 1 bedroom Velas Vallarta
red week, with 2007 available. Help!

MY wife has breast cancer and I need to get out of the deal .
A  6th of Dec, 2007 by 
Agree Disagree 0 Votes
A  24th of Dec, 2007 by 
Agree Disagree 0 Votes
Unfortunately I got to this posting little too late. I fell to the scam on December 16, 2007 and purchased 12 week package for $12000. They said that I do not have 5 day cancellation option as it is a resale. Now I am realizing that it is all scam. I am not sure if the weeks can be rented or promised annuity can be expected. I was wondering if you were able to do anything about this. I am willing to join if you have plans of class action law suite. I really appreciate any information or direction to get out of this.
A  6th of Jan, 2008 by 
Agree Disagree 0 Votes
In April 2007, I listened to a presentation and went back the next day to inform them I was not interested in purchasing another condo. Mr. Noe told me that my condo and additional fractional condos that were included in my contract, would be rented out by them in the next 6 months and I would receive $15,000 by September 2007. This would go towards the purchase of the original contract. Nothing has been rented! Nothing was said about dues, but of course as you all have found out, the dues are over $900 per week for two weeks. Over $60,000 has been charged to my credit card. I have no intention of ever using this resort. I am 72 years old and I was hoping to retire in the next 3 years, but now I am unable to because I am out over $60,000 plus interest to my credit card. I was led to believe by Mr. Noe that I would be getting $15,000 a year income from this investment. I will join a class action suit.
A  18th of Feb, 2008 by 
Agree Disagree 0 Votes
In February 2006 it appears we feel to the same scam. We traded in an exisiting timeshare and upgraded to Velas; 25 velas weeks and 75 exchange weeks along with an annunity. We were promised (basically guaranteed) rental success due to the Velas involvment in the PGA tour. We found out later that it was the senior PGA tour but irregardless we moved forward with Bobby Rudd of VIP/Premier Vacation group and we've had no rental income to date... just excuses! We recommend anyone looking for rental or resale services not to use this group.

Our sales rep Xavier Zaeyora also explained as Canadian owners of a foreign fractional ownership we would be able to write off travel expenses to the resort. He presented potentially a false CDN government document to support his point but upon returing to Canada and investigating we could find no supporting documents or taxations policy. As pertaining to the annuity, it was expressed to us by Xavier that this annunity had no additional costs to us. Again upon returning to Canada and contacting the annuity company additional funds were required at which point we ceased proceeding. With these discoveries our attempts to contact Xavier let us to discusions with Jonny Noe and all meainingful discusions were futile. We exchanged our exisitng timeshare for another property, we did take a considerable loss, however we felt that this was our opportutity to excape the lies and dishonesty.
A  25th of Feb, 2008 by 
Agree Disagree 0 Votes
My wife and I also got caught up in this fraud. We are feeling pretty stupid now and would be 100% behind a class action suit.
A  5th of Mar, 2008 by 
Agree Disagree 0 Votes
My partner and I bought into the same scam as everyone else 11/21/05. But different names were involved. We "traded-in" our Grand Mayan ownership (why oh why!) because we were told that Resorts International (we were mis-led to believe this was RCI) would sell 4 weeks per year at Velas and give us back money because the unit would rent for $500.00 a night. So we would be able to pay off the loan we were going to have to take out upon our return to the US. I know I can still see the "sucker" over my head. We were never told the resort was All-Inclusive. We were treated with kid gloves and received meals and massages by the sea. So far to date we have never been to the resort and have rented one week ourselves and would love to be part of a class action suit against this resort. This week we received notice that the legal name of the resort has changed and that worries us - why I don't know it just does!
A  16th of Mar, 2008 by 
Agree Disagree +1 Votes

N  14th of Dec, 2016 by 
Agree Disagree 0 Votes
@Lynn Knudson Lynn, We just found this website regarding complaints on Velas Vallarta. We have had our timeshare since 2005, and have had similar circumstances with Ken Waller and Johnny Noe. We are very interested in joining your group for a class action lawsuit against Velas Vallarta and these two men. You wrote on this website in 2008, is the lawsuit still going? Where are you with the suit? please contact us at Lrusscampo@triad.rr.com. Thank you, Russ and Linda Campo - North Carolina
A  22nd of Apr, 2008 by 
Agree Disagree +1 Votes
Lets get them its so unfair. Why can'yt we AARP to at leat but this in their monthly magzine. Or Good morning America should do a piece on this.
N  24th of Apr, 2008 by 
Agree Disagree -1 Votes
You have too much free time, if you are falling for these car salesmen tactics. I am probably much younger than you (20's) but I wasn't aware that both your LEGS and your mind go as you get older. Pay for vacations as you go, and stop trying to get stuff for free. It is kind of embarrasing that you fall for this... did any of you go to college? You make Americans look like suckers. The road to a good retirement is not timeshares...it is good investments with hard earned money, and paying for services rendered and vacations when you can afford them with CASH- not future credits or other b.s. You sound like a bunch of confused Parkonson's patients... confused about how fast the world is going today. If it wasn't this...you would have lost your money to some other opportunist. Just my 2 cents.
A  5th of Jun, 2008 by 
Agree Disagree +1 Votes
Joe, I'm not sure why you sound so angered and are so condescending to the victims of this scam. First off we are not saying all timeshares are bad. My family and I own multiple other timeshares and there are very good legitimate ones out there. I never would have traveled to Cancun, Maui, Paris, and many other places if it wasn't for the timeshare I purchased in college years ago (yes, people who go to college do buy timeshares). I would have had to pay over $2000/week for the resorts I've stayed at, but instead I've never paid more than $200/week through the RCI timeshare exchange program. I too purchased it on credit but it has been fully paid off and I have more than reaped the benefits of what I initially paid for it.

I also just purchased a timeshare at Velas Vallarta, but the difference here is, with my previous timeshare I got exactly what I was told, and at Velas they just flat out told a bunch of lies. Their false promises of "we guarantee it will rent out and it will pay for itself within the next few years" sales pitch is downright fraud... whether we decide to purchase for personal use or rent it out for profit. That's especially true for the victims who told the sales rep they cannot afford the payments, but ended up buying because were promised the rentals will pay for itself in a few years. Velas purposely mislead people, causing many to live beyond their means and go into debt. Also they lied about the demand on their property and their HSI "priority" treatment so they can inflate the unjustified price. Its a shame because Velas is actually a nice resort on the beach at a popular location, but it is the fraudulent sales promises that tarnishes the resort as a whole now. Please contact me if there's anything I can do about a potential class action lawsuit. I am going to contact RCI and advise them of their sales practices and perhaps start spreading the word that way... and I cannot see RCI condoning such fraudulent practices at one of the resorts affiliated with their exchange program.
A  9th of Jun, 2008 by 
Agree Disagree +1 Votes
My wife and I also had a very different experience of Velas fractional ownership than the one Velas' representative, Mr. Doug Lockett described to us last August.

There have been a number of items that I've found out in discussions with other Velas personnel that, in practice, are at odds from how Doug presented them.

Mr. Lockett made a point to repeatedly emphasize one of the benefits of a Velas Club membership over the Hilton Grand Vacation Club membership we already owned was that there were no maintenance fees. My wife and I thought we were trading in our HGVC membership and the associated maintenance fees for a Velas membership without fees. Instead, not only did we not end up trading in the HGVC for the Velas membership, we now have two vacation club memberships with maintenance fees

Our deal included 25 Velas weeks and 75 HSI weeks. Not only did we get soaked up front for the fractional ownership, now we can look forward to paying them another 25 years worth of maintanence fees or a service fee of $50.00 to surrender the week.

As for all those HSI weeks, I just received an e-mail from Todd Danforth, the Contract Manager I've been dealing with stating, "these weeks are booked directly through HSI and the only cost to book one of these weeks is the avg. price of $450.00 depending on the size and season you book."

Doug Locket also stated that if we paid a onetime fee upfront that we would not be responsible for any commission fees to Sierra for any weeks they rent for us. When I spoke to a Sierra Club Rental Client Service representative recently, I was told the maintenance fee and a 5% commission would be withheld from any rental income we might receive in the future. But, based on the other comments I've just read, it doesn't sound like the rental checks will be coming in anytime soon.

All in all, I read through all the similar stories listed and started to get discouraged all over again. This experience basically ruined what was truly a wonderful vacation at a beautiful resort.

I'd be interested in joining any campaign to spread the word of the deceitful, fraudulent practices this company continues to engage in. Some of the ones that might get the attention of Velas have already been mentioned: RCI, travel agents, news media, travel clubs, AARP, government agencies like the better business bureau, the golf tour they like to tout during the presentation, etc.

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