In this case
- Rowena Cruz pays $8,174 for a Palladium Travel Club membership while on vacation in the Dominican Republic.
- Two days later, she regrets the purchase and tries to cancel, but the company refuses, claiming the contract has no cancellation clause.
- After getting the runaround, she wants to know if there’s any way to get her money back from the travel club.
Rowena Cruz buys a membership in Palladium’s Travel Club but almost immediately regrets the decision. Why won’t the company refund her $8,174?
Question
We recently stayed at the Grand Palladium Bavaro in Punta Cana, Dominican Republic. While we were there, we were invited to attend a sales presentation for the Palladium Travel Club. We paid $8,174 as initial payment, which included a deposit and administrative fee. We used our credit card for a 30-year package with 60 all-inclusive weeks.
My husband and I soon realized that the membership is not beneficial to us and that we can’t afford it. Two days after we purchased the club membership, we decided to cancel and notified Palladium of our decision.
About two weeks later, I received a call from the sales manager of Palladium Travel Club, advising that I can’t cancel my membership because there is no cancellation clause in the contract. I believe I have the legal right to cancel my membership and we want to exercise that right. Can you help me get a refund? — Rowena Cruz, Ontario, Canada
Answer
You have the right to cancel your contract — if not legally, than ethically. But before we get to that, let’s take a closer look at what happened to you while you were visiting the Dominican Republic. There you were, minding your own business on an all-inclusive vacation, and out of the blue someone invites you to a “brief” sales presentation.
That presentation for Palladium’s club took almost all day and, if its website is any indication, it was filled with lofty promises and hyperbole. How could you not want to sign up for something that offers “endless possibilities to change your way of traveling forever”? (Related: How do you get out of a travel club? Try this trick.)
Palladium seems to gloss over the costs and it’s also vague on the benefits of its “club.” Sample question from its site: “How can I get the best out of my membership?” (Hmm, you might start by telling me how much it costs?)
Disclosure: I’m a travel club skeptic. As I wrote in my book, How To Be The World’s Smartest Traveler, there’s only one travel club I trust: AAA. From what I can tell, Palladium’s club is a curious combination of loyalty program, timeshare and all-inclusive. And I see no reason to change my opinion about travel clubs.
Have you ever signed up for a travel club or timeshare and then had second thoughts? Tell us about your experience.
Palladium claimed its contract had no cancellation clause. Should a company be able to enforce a contract that offers no way out, especially if it was signed under high-pressure sales tactics?
What’s your best strategy for getting a refund when a company says “no”? Share your advice in the comments below.
Let us give Palladium Vacation Club the benefit of the doubt
Let’s assume this whole operation is on the up-and-up and that you had signed up in good faith. Should you be able to cancel your membership within a certain period of time? You believed your contract was governed by Mexico’s laws, which require a cooling off period. The Palladium representative to whom you spoke said there’s no such requirement because the contract is governed by Spanish law.
Frankly, I don’t care whose law applies, and neither should Palladium. It sold you the club membership in a high-pressure environment when your defenses were at their lowest, while you were on vacation, and it should immediately refund the money. (Here’s our best guide to traveling this summer.)
Palladium makes regular appearances in this column. For example, Esmeralda Nicolescu and her husband enthusiastically enrolled in a Palladium Travel Club membership, only to discover that it did not hold the anticipated advantages for their family. Despite their efforts to terminate the membership, Palladium declined their cancellation request. Luckily our advocacy team intervened on their behalf.
I list the names, numbers and emails of the Palladium Travel Club executives on this site. A brief, polite email to one of them might have helped your cause.
I contacted Palladium on your behalf. Your cancellation is being processed.
The magic phrase that gets refunds
When you’re outside the cancellation window and have no contractual right to a refund, getting angry is the worst strategy. Instead, politely ask for a refund “as a one-time courtesy” or “as a gesture of goodwill.” This acknowledges the company isn’t obligated, but gives them an easy, blameless way to say “yes” and resolve the situation.
How to get out of a travel club
- Review your contract immediately. Your first step is to find the cancellation clause. Most contracts are required by law to have a “cooling-off period” (usually 3 to 10 days) that allows you to cancel for a full refund without any penalty.
- Send a formal written notice. If you are within the cooling-off period, do not call. Send a cancellation letter via email and certified mail with a return receipt. State clearly that you are canceling your membership as per the terms of your contract.
- Keep meticulous records. Document every interaction. Save copies of emails, mail receipts, and notes from any phone calls (including date, time, and representative’s name). This documentation is critical if you need to escalate your case.
- Use the “magic phrase.” If you’re past the cancellation period, getting angry won’t help. Instead, politely ask for a refund “as a one-time courtesy” or “as a gesture of goodwill.” This gives the company an easy, no-fault way to give you your money back.
FAQs
- What is a “cooling-off” period? It’s a short window of time, typically 3 to 10 days after you sign a contract, during which you have a legal right to cancel the agreement for a full refund without any penalty.
- What if the travel club says there is no cancellation clause? Don’t take their word for it. The right to cancel within a cooling-off period is often mandated by local law, regardless of what the contract says. Research the consumer protection laws for the location where you signed the contract.
- Why is it a bad idea to get angry when trying to cancel? An angry, emotional appeal can make you seem less credible to the company and to your credit card issuer if you file a dispute. A calm, professional, and persistent approach is always more effective.
- What’s the best way to ask for a refund after the cancellation period? Politely ask for a refund “as a one-time courtesy” or “as a gesture of goodwill.” This gives the company an easy, no-fault way to grant your request and resolve the issue.
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