Petchey / MGM Muthu

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Offline Muggins

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Petchey / MGM Muthu
« on: March 03, 2016, 10:44:56 »
Hello Everyone!  :D
My wife and I would very much appreciate some information about the possibility of getting out of our Timeshare with MGM Muthu.

Back in 2007, in an evil hour, we went to a presentation by a firm called 'Buena Viva' and were offered a Timeshare deal with Petchey.  At that time our son was living in Japan, so we wondered if we could get a holiday there via RCI.  "No problem!" said the rep, but of course when we bought the Timeshare (£8,000) and tried to book something in Japan, it proved impossible.  The people involved in Buena Viva served time in prison for fraud a short time later.

The Points we purchased were 'VIP' points, but on our very first holiday, we were told that we had bought the inferior product and needed to upgrade to 'Infiniti.'  We had been told nothing about 'Infiniti.'  To upgrade would cost us another £8,000 (!) and we declined to do it.  At some point our 'VIP' points were changed to 'Atlas' but we have not paid anything more except our fees each year.  Many of the improvements made in the Petchey/Muthu resorts are for 'Infiniti' clients only, so we get no benefit from them.

Our initial fees were £368.60 per year.  In 2009 they bumped up massively and when I queried it, I was told it was because of the depreciation of the Pound against the Euro.  The ones I paid for last year were £637.  Needless to say, when the Pound rose against the Euro last year, the fees did not go down.

Last year, a Muthu rep offered us an escape from the Timeshare for £5,500.  We declined.

On Dec 2nd last year I booked an apartment at the Royal Albatros Hotel in Teneriffe for w/c 31st January.  On Booking.com the same apartment for the same week was available for £471, and through Trip Advisor it was just 356 per day, or £392 for the week.  The Timeshare is just appalling value.

Having complained to Muthu about the value for money, and having achieved no reduction in fees, I have told them that I shall not be paying my fees for next year.  They have responded by reminding me that I have the Timeshare in Perpetuity and no right to withdraw.  Can they really force me to keep paying year after year for a product of appalling value, or to pat through the nose to get out?

I shall be really grateful for any advice that you wise folk are able to give me.

Muggins

Offline pathfinder

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Re: Petchey / MGM Muthu
« Reply #1 on: March 03, 2016, 17:35:40 »
I understand that there is a resort somewhere where Petchey hold a number of weeks and they are not paying the annual maintenance on those weeks. Yet if members withhold their maintenance fees in a bid to rid themselves of the "pesky Petchey timeshares" they are told they must pay as they have signed an In Perpetuity Contract, many of these contracts if not all, have been declared Null and Void but they are still threatening these people with court action. Talk about Kettle and Pot. This industry lacks any morals so is there any wonder that the Press, Television and other media such as the internet give it such a working over on a regular basis.   

Offline Muggins

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Re: Petchey / MGM Muthu
« Reply #2 on: March 05, 2016, 09:12:20 »
When I wrote to MGM Muthu giving them a year's notice, I got no reply for two months, then this:

Quote
We sincerely apologize for the delay, however due to some internal reorganization we are treating our correspondence later than expected.

We wish to inform you that our company does not operate a termination policy, however, MGM MUTHU Group understands the concerns of its members and does offer some favorable solutions that can reduce fees for the future and offer a surrender clause option.

The contract you signed is in perpetuity and such whoever is named on the contract is liable for the contractual annual fees. Any future agreement must be done under the condition that there are no outstanding fees.

Our suggestion is to discuss the available alternatives with a representative and obviously this is better when you are at the resort and as you have a confirmed reservation please make an appointment to see a representative at the Infiniti reception whilst you are on vacation.
The 'favourable solution' will be us paying them several thousand pounds.  >:(
Does anyone have any suggestions as to what we should write back?  Or should we just wait until next year and withold our fees?  I have no intention of talking with one of their representatives.

I bought the points in the UK.

Offline Marvin

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Re: Petchey / MGM Muthu
« Reply #3 on: March 05, 2016, 23:55:01 »
Muggins, I think you should change your name to Scammed or Ripped-off or Robbed. Muggins implies that you in some way made a mistake but what you faced was a trained and experienced group running a system designed to pressure you into spending your money and signng a life long agreement with effetively no way out (unless you want to spend more money.

Should any retail customer be allowed to make an undertaking that lasts the whole of their life with no way out?

I remember going through the Infinti pressure sales meeting myself. Not good.



I'd rather be in the minority and right, than in the majority and wrong. After all I only have to live with myself!

Offline Mike F

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Re: Petchey / MGM Muthu
« Reply #4 on: March 07, 2016, 08:55:30 »
Hi Muggins (Scammed or Ripped Off - I think I should change my name to one of these also)

I am no legal expert but reading some of the posts on this site I do believe that no case has been brought to the courts in the UK (I am sure there are legal experts who will correct this statement) because there is little prospect of them winning such a case.  I also further believe that contracts in perpetuity have been declared illegal in Spain.
In god we trust - the rest of you must bring evidence

Offline Muggins

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Re: Petchey / MGM Muthu
« Reply #5 on: June 06, 2016, 18:27:23 »
I had an invitation for a free week at a Muthu hotel in Ipswich, and today I had another interview with a Muthu 'advisor.'  She asked me for £5,500 and in return I would get access to all Muthu hotels and pay a (somewhat) reduced maintenance charge of £525 per year for 5 years after which the charge would disappear altogether.  She refused to give me a copy of the offer to look at unless I signed up for it there and then.  You will see that it's hardly changed since last year.

I am not disposed to take up this offer, as it is never wise to throw good money after bad, but the lady was very clear that it is the only one on offer.  Would it be a good idea to write to Muthu and ask for confirmation that this is the deal they are offering?  If the thing ever goes to court, it would perhaps be good if I had a copy of it.

Offline Karen Taft

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Re: Petchey / MGM Muthu
« Reply #6 on: March 01, 2017, 23:06:32 »
Hello, is there any update on the cases referred to in this thread?  I have foolishly signed up for more points in order to get out in 5 years (4 left) and I'm stuck with £13000 worth of finance plus annual maintenance fees.  Help?

Offline Muggins

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Re: Petchey / MGM Muthu
« Reply #7 on: March 06, 2017, 14:06:41 »
Just to say that I did not pay my fees at the end of December.  I have received two chasing e-mails.  I replied to the first, informing Muthu that I had told them in Dec 2015 that I would be ceasing to pay; the second one I have not replied to.  No threatening 'phone calls so far

Offline helpimafish

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Re: Petchey / MGM Muthu
« Reply #8 on: March 17, 2017, 13:30:05 »
I didn't pay mine either. I've had a few reminder emails, none of which I've opened and today got 2 calls from Portugal, which I didn't answer.

Offline Muggins

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Re: Petchey / MGM Muthu
« Reply #9 on: May 17, 2017, 11:46:33 »
I have now had two or three 'phone calls from Muthu, which I haven't answered.
Otherwise all is silence.  Long may it remain so!

Offline Minbin

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Re: Petchey / MGM Muthu
« Reply #10 on: October 20, 2017, 16:00:14 »
Hi - Looking for some advice regarding MGM Muthu.  I advised MGM Muthu back in August 2015 that we wanted to exit our timeshare contract as it was illegal as it was over 50 years.  We haven't paid our maintenance fees for 2016 and 2017 and have had an odd chase-up email which I have replied to advising that we are not paying as the contract is unenforceable and a few phone calls which I have ignored. I have now received an email saying the following "In regards to the Spanish law our company has always complied with the laws.  If a timeshare company does not have a trustee, then they are not complying with law.  However we have had the same trustee for almost 3 decades, therefore the perpetuity is valid and enforceable."  Does anybody know if this is correct?  I have a feeling that it is just to scare us into paying.  They have also offered us a breakaway contract as follows "If you wish to terminate your contract, the Company can offer you a Breakaway agreement. This will wipe out any outstanding fees and will remove any future liability. To clarify you would no longer have a membership. The cost to do this is 3,000 pounds. If you have any interest in this solution I am happy to send you by email the very simple contract."  I'd be grateful for any advice anyone can offer.  Thanks.

Offline Norm de Plume

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Re: Petchey / MGM Muthu
« Reply #11 on: October 23, 2017, 10:57:58 »
Stick to your guns. Their response is nonsense.
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Offline jcorrea-lawyer

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Re: Petchey / MGM Muthu
« Reply #12 on: October 25, 2017, 19:42:59 »
"In regards to the Spanish law our company has always complied with the laws.  If a timeshare company does not have a trustee, then they are not complying with law.  However we have had the same trustee for almost 3 decades, therefore the perpetuity is valid and enforceable."  Does anybody know if this is correct?

No, it is not. The Spanish Law says nothing, not even mention, the possibility of a trustee. Perpetuity may be only valid in contracts signed before 1999 when the Spanish Timeshare Act 42/98 came into force.
As Norm says "Stick to your guns" :)
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Offline SteveT

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Re: Petchey / MGM Muthu
« Reply #13 on: October 28, 2017, 10:40:58 »
Quick query or 2! Isnt Muthu mainly in Portugal - Albufiera? Therefore does Spanish Law apply to Muthu - especially as this is a Hotel Chain based in India? Also has anyone else seen the 30% hike in maintenance fees for 2018?

Offline Minbin

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Re: Petchey / MGM Muthu
« Reply #14 on: October 28, 2017, 12:30:30 »
Thank you JCorrea and Norm De Plume for your replies.  We purchased the timeshare (which they've now changed to Atlas Club) in July 2001 so perpetuity isn't valid.  Would you advise that I respond to them that I know what they're saying isn't correct, or would you suggest just ignoring them from now on?  Steve T - we've just received our invoice for 2018 fees (which I won't be paying) and we've had an increase of approximately 3%.

Offline Muggins

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Re: Petchey / MGM Muthu
« Reply #15 on: October 28, 2017, 21:42:34 »
I received my invoice for 2018, with an increase of only about 3%.  It was added onto the 'outstanding' amount for 2017 of course.
Once again, I have no intention of paying.  Yes, SteveT, Muthu is based in Portugal, but I'm assuming that they won't take anyone to court because they may find that perpetuity is found to be an unfair contract in Britain as well.

Offline Norm de Plume

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Re: Petchey / MGM Muthu
« Reply #16 on: October 29, 2017, 09:49:07 »
Where does the contract say jurisdiction lies?
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Offline SteveT

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Re: Petchey / MGM Muthu
« Reply #17 on: October 30, 2017, 11:38:23 »
My Contract (which originally was with UVC - then to RMI - then to Petchey - then to MUTHU) says that I deal with Leisure Dimensions Limited and it is incorporated in Dublin. So contract is Irish.  I am "fairly" lucky having decided to go to Pure Points and effective 1 Jan 2020 I can stop paying and that is me finished. Gritting my teeth as  have had a 30% hike on the maintenance fees but.....

Offline helpimafish

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Re: Petchey / MGM Muthu
« Reply #18 on: November 15, 2017, 13:56:38 »
Latest update  - I received a letter from Portugal a couple of weeks ago which I've not opened and today a further email, again not opened and another phonecall. I'd already blocked the number so I can't accidentally answer so they had to leave a voice mail, asking me to contact them. Methinks a long wait for Petchey/MGM (but i'm still secretly dreading a knock at the door).

Offline daveh44

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Re: Petchey / MGM Muthu
« Reply #19 on: November 19, 2017, 12:17:34 »
No one yet anywhere in UK has received a "knock on the door". They will not pursue to this degree.
Before that "knock" can have any authority they will have had to take you to court and win their case = also not happened anywhere yet!

IMHO do not leave letters received unopened - always open and read them, and at least then you will know what they are doing. Ignorance is not a defence.