Buyers Beware of Boutique Resort La Jolla, Mazatlan Mexico

On December 17, 2007 my husband and I attended a sales presentation at Boutique Resort La Jolla in Mazatlan, Mexico. Our salesman was Mr. Fernando Lobato. We told Mr. Lobato, that we did not require another timeshare, but we were willing to listen to his presentation on fractional ownership points. We told Mr. Lobato, that we had been trying to sell our Virginia Beach, Virginia timeshare for over a year. Mr. Lobato told us he would be able to sell our timeshare, in exchange for our purchasing 27, 500 fractional ownership points with Boutique Resort La Jolla. Contract No. 417 with Addendum was drawn up by Mr. Lobato. He agreed to sell our Virginia Beach, Virginia timeshare, by June 17, 2008 for a total of $12,000.00 USD. We agreed to purchase 27, 500 fractional ownership points for $11, 400.00 USD. The Addendum to Contract No. 417 stated if Mr. Lobato did not sell our Virginia Beach timeshare by June 17, 2007, we had the option to cancel the contract, and Boutique Resort La Jolla, would reimburse all monies given up to that point. We were required to sign a credit card acknowledgement that waived our 5-day cooling off period rights, which I found out later, is illegal according to Mexican law. We were also required to put down a 50% earnest money downpayment in the form of a new application for a Bank of America credit card in the amount of $6175.00. However, according to the contract, we would not begin to make payments on the Bank of America credit card until July 12, 2008, which would have been after the Virginia Beach timeshare had been sold, by June 17, 2008. We left the presentation feeling secure in the fact that we had a contract, which would be legally binding by all parties. On December 27, 2007, just ten days after signing the Contract No. 417 with Addendum, I received a email from our Boutique Resort La Jolla salesman, Mr. Fernando Lobato. Mr. Lobato wrote that, "It seems that the state laws in Virginia complicates things for us a little." I knew then that we had been scammed! In January, 2008, I received my first credit card bill from Bank of America, requesting that I pay 1% interest on the earnest money deposit for the next 6 months. I called Bank of America and told them about the six month contract pending sale of our Virginia Beach timeshare, and that according to the contract, we were not due to make payments until July 12, 2008. Bank of America told me that they could not defer payments. I would have to seek payment deferment with Boutique Resort La Jolla.
I emailed our salesman, Mr. Lobato, who forwarded my email to Mr. James Berkley, Sales Director, Boutique Resort La Jolla. Mr. Berkley was absoutely of no assistance. He instructed me to make the monthly payments. I disputed the early charges with Bank of America in January, 2008, but was told that nothing could be done, unless the Boutique Resort La Jolla did not perform the services that we contracted for on December, 17, 2007. On March 31, 2008, I received a letter from Bank of America crediting my monthly payments, as well as the earnest money deposit of $6175.00 in full. I thought that Boutique Resort La Jolla had canceled the contract, since the Virginia state laws enabled them from selling our timeshare. I thought that my dealings with Boutique Resort La Jolla had come to an end. On June 7, 2008, we returned from vacation, to find a letter from Bank of America dated June 2, 2008, requesting that I submit further documentation regarding my dispute with Boutique Resort La Jolla. I was very surprised to receive this letter since my credit card had been credited in full in March, 2008. I submitted the required documentation to Bank of America as instructed. On June 10, 2008,
I received another letter from Bank of America telling me that they had attempted to contact me
regarding the dispute, but were unable to do so, and that I had not included the front and back page of the dispute form with my correspondence. I found this letter incredible! We have voice mail on our telephones, and my husband is retired, and is home most of the day to receive phone calls. As far as incomplete documentation, I have every piece of email and correspondence regarding this case from day one. That was when I discovered that Bank of America and Boutique Resort La Jolla must be connected in some way. I went on line to Bank of America's website, and found out that Bank of America had acquired 24.9% interest in Grupo Santander Serfin in March, 2003. Boutique Resort La Jolla utilizes Santander Serfin as their merchant bank. My Bank of America credit card was processed by Santander Serfin on December 17, 2007. So, now I realized that I had not one problem, but two. There is clearly a conflict of interest with me being a consumer customer, and Boutique Resort La Jolla being a business customer to a partner bank of Bank of America. Boutique Resort La Jolla did not sell our timeshare by June 17, 2008. I informed Mr. Lobato, via US certified mail, return receipt requested and email on June 17, 2008, that we were canceling the contract. We also requested that he reimburse the Bank of America credit card earnest money deposit in the amount of $6175.00. We received counter counter offers from Boutique Resort La Jolla via email , but we were clear from the onset, that we did not require another timeshare, but were willing to do an even exchange for the previously owned timeshare. Mr. Lobato sent us an email admitting that he did not deliver what was promised, and then requested payment on the remaining balance due on the fractional ownership points! We hired an attorney, who reinforced the cancellation of the contract. Bank of America states that Boutique Resort La Jolla has stopped receiving their inquiries, and there is nothing more than can do. My Bank of America credit card was a MasterCard, I visited the MasterCard worldwide website, and found out that Bank of America had several options open to them including chargeback arbitration and compliance case filing.
How could Bank of America not be able to get money back from a partner bank?
On Septemer 4, 2008, Bank of America sent me a letter requiring that I pay the Boutique Resort credit card in the reduced amount of $6125.00 plus a late fee of $39.00.
I have submitted consumer complaints against Boutique Resort La Jolla to PROFECO in Mexico City, The US Embassy to Mexico, the Better Business Bureau of Maryland and Delaware, The Attorney General Offices of Maryland and Delaware, my Congressman, the Maryland Timeshare Association. I submitted a consumer complaint against Bank of America with the Comptroller of the Currency. I am committed to receiving full reimbursement of my earnest money down payment from Boutique Resort La Jolla. I intend to alert as many people as I can to this deceitful
unscrupulous business. I am just beginning to do research on consumer fraud in the timeshare industry and the early numbers are staggering. Something must be done to protect tourists from
unlawful businesses like Boutique Resort La Jolla Mazatlan Mexico. I would appreciate receiving feedback, something has to be done, and there is strength in numbers. If there are others out there who want to start a campaign of some sort, please sign me up. Together, I believe, that we can put businesses like Boutique Resort La Jolla, and salesmen like Fernando Lobato, out of business, or at the least make them follow Mexican law that protects consumers.
Thank you,
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