News from the Courts in Mexico

It is not just in Europe we are seeing a proliferation of legal battles in the courts against timeshare companies, in October, Noticias De La Industria Turistica of Mexico announced the following.

The Federal Prosecutor’s Office (Profeco) has won the group action which it filed in 2012, this was against CV Resorts, who are the operators for the Howard Johnson Hotel Puerto Vallarta brand. It was for the undue collection of extraordinary fees amounting to $1.044, per person in 2010.

After 5 years of battling, the Profeco Legal Subprocuraduria brought the case before the judicial bodies of Jalisco. It reached the First Civil Court of the Third Circuit, which then ruled in favour of the consumers who joined the action, this numbered 4 thousand. Many of these consumers were timeshare owners and also foreigners.

The court’s verdict allows them to recover around 94.4 million pesos (approx $50 million) for the the affected clients. The hotel company must also modify its service guidelines so consumers are not subject to the collection of extraordinary fees and restriction of access to facilities.

The Profeco confirmed its commitment to defend the rights of consumers in Mexico, whether they are domestic or foreign.

So it looks like Mexico is following Spain in the defence of consumer protection from the timeshare industry.

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