Unfair Business Practice - Club Ultima

I signed up for Club Ultima last year. We were advised that we can only take advantage of the offer that day so we have to decide right away. The offer was really good at the time and we were only in Boracay for limited time, we agreed to join.

Reservation : Php 18,400
Monthly Due: Php 3,000 (May 2014 - May 2015); Php 5,400 (June 2015 - June 2017)

Once 30% of the total price has been paid, we can take advantage of the benefits as members. That is at least more than a year from signing up.

All is well and monthly dues were autodeducted on my creditcard. However, I didn't get any updates anymore after this. I need to constantly make follow ups to know if I already paid the 30%. I believe that this should be automatic since this is important in our membership. After that I was advised to deposit my annual fee first to take advantage of the free nights included on my membership. I said they can just deduct it in my CC. No updates afterwards. Numerous follow ups happened again.

Finally, I decided to cancel the membership but I was told that no payments will be refunded because it has exceeded 15days after reservation. This is unacceptable. It also said on the contract that if we were unable to use any benefits, we are entitled for a refund. Or so what I understand. In any case, how was I to know that their service sucks if it takes more than 12months before I can take advantage of their services? Also, they didn't give us enough time to review the contract and get legal advice. Plus if this is the case, they made us agree into a contract fraudulently because they know they can give under quality service and still we cannot backout because none is refundable. So we just have to put up with their BS. This is denying of our consumer protection as Filipino citizen.

If I handle this legally, will the consumer protection law be favorable to me?

Thank you.

hi.

have you filed any case against the club?

We're having the same problems.

I'm also seeking legal advice from some friends.

Please keep me updated on this.

We also want our money back.


Kind regards.

I didn't. I decided not to stress myself regarding this anymore. But if there can be a class action lawsuit regarding this, I would be willingly join. I requested my membership to be on hold for autodeduction as of the moment.

ok. I'll just inform you if anything comes up. Thanks.

have a good day.

DTI Makati is accepting filing of cases for free for Article 52 of RA 7394 with sales / transaction that is grossly inimical to interests of consumers and is grossly one-sided in favor of the seller.

I have the same problem Club Ultima.

Just that my membership is already fully paid. But then, they increased the annual fees more than double this year.

I hope we could all work together to push DTI in protecting us as consumers from abusive sellers as Club Ultima.

I encourage you to do the same. I am also fixing relevant docs that can be used as attachment to my complaint. Let us flood DTI with complaint on Club ultima.

Hi lovegador,

I already filed my initial complaint last Feb 2018. The only thing that got worked out was my booking this April. I was even quite surprised - coz the day of mediation alone, Club Ultima membership manager Arlene Cabbadu was there an hour prior to attend to 1 mediation, and after me, she has to attend to another. In DTI's logbook, she even looked for Joseph Manuel P. Pamittan, the Mediation Head. So as far is flooding DTI with complaint, I think that's already their status. They could even be chummy already that she frequents their office regularly. Club Ultima's office is just right accross DTI FTCB.

The goal should be to make things happen and find what will work out for us.

For my request on option to cancel my membership bec I was not amenable to their increase (and we were not advised prior, especially during purchase, that there will be one anytime in the future), this was not worked out. DTI's timeline lasts only for 10 days. They advised me to re-file, they will provide the assistance for free. I am doing that this coming April and I'll be directing it to -
Rafael King
Chairman of J.Kings and Sons Co.
Mother company of Crown Regency and Club Ultima

Coz if you direct it to any employee, including the Membership Manager, there is nothing they can do. They are powerless. They will keep telling you they had forwarded it to Management in Cebu and to their Legal Department. But there's no answer or the answer will always be negative.

I am trying to find complainants with the same problem -
Manila Club Ultima Members who are "Still" members, have fully paid the membership fee or least still paying, and who are not amenable to the abrupt and exorbitant increase on the annual maintenance fee (from 6720 to P13,920).

Coz I learned from Club Ultima office that Member Complaints from Manila are many.
A friend advised me that a Class Suit may be more effective than individual cases.

So if you are, and would like to do something about it, together. Please contact me here.

In fact, I have even gone to Tulfo and was referred to Integrated Bar of the Philippines for consultation - but this did not help either.

Hi S2S,
What is your next step. I am still finishing up on my narration then will email to DTI. Will definitely join a class suit if there is any.

I am just polishing my narration, marinating it in prayers, and will be submitting my papers again to their office on April 2. Coz I think emails don't work with them. In the first case I filed, after they sent me the moderation appointment, I sent 2 emails back but I never received a reply. I even tried calling but numbers weren't working and couldn't get through.

Email and calls seemed not to work with DTI's office. They only use it for outgoing notices, but not really for communication.

What's the main issue are you filing if I may ask? You may also send communication to me at terrytsy AT gmail.com

I am also filing because of the exorbitant increase in the annual fee. Wih the way they offered ny their membership it seemed to me that the 6720 was fixed only to find out that they can increase it any time they want.

During presentation last year 2017, they did not inform you they were increasing this year for the annual fee?

I bought my 2nd one 2015 and they did not inform me then.

My first one I bought last 2009, but they've only allowed me to pay my annual fees in advance till 2017 but not further. And I did this 3 years ago.

Until I received the memo this year for the increase.

I had been guessing and wanting to know if they had informed members who joined at least last year, and if they had been at least transparent about it.

If what you say is as it is, for me you have a strong cause (if the P6720 in your contract agreement). If so, that will strengthen and confirm my case too.

It also confirmed my hunch. They had plans all along and were just not transparent with the planned increase. Management or even board approved increases like that are not decided overnight. Even if the tangek lawyer from IBP informed me that it's board prerogative, and members have no say according to corporation law (but at least they should have been clear to us about it from the start that we are subject to it, then we would at least decided to purchase based on it, knowing what we are getting ourselves into). How are we to know and ask each time we buy a product if it's a corporation behind it, to know if we are subject to increases, diba?

Then we have the same case. I suggest we file it together. I even suggest that you don't submit it yet. If you can, send me an email of your narration. Once I finalize mine, I'll send it to you too. Coz I think we only have 1 shot. If we don't win it here, I don't know where else to go, what to do and who will help us anymore.

I hope there will be more members with the same case to join us for us to file together. To solidify that what we say is true and we have been told and committed of the same thing. That will make our claims solid and stronger, and them a liar and practicing unfair business, preying on small people like us.

I know we are many (from what Club Ultima office says), but we don't know each other, and their office will not help us get together or find ways. We are all being asked to write a letter of complaint to their management, and our laboriously written letters are just being piled perhaps as heaps of trash since they don't care, they are too big, too far, untouchable, and too proud.

They have no plans to reverse the increased annual dues, based on my last mediation discussion with them this Feb in DTI's office. The company already have plans where to use the funds.

I also hope no not a single member would pay for the 2018 dues yet to prove all our point that we don't approve of the increase, that it's not fair to subject us to forced increase or payment.

Actually, I bought my membership 2016. The amount 6720 was not in the contract that I signed but it was stated in the list of member benefits that they gave me. However, it was also not written in the contract that the annual fee may change. So I assumed that it will be fixed for the whole duration of my 15-year membership. I also did not receive any notification that they will increase the fee. It was only when I asked my father to pay for it that we knew about the increase and that this increase was due to the TRAIN law which is now being implemented "daw".

I've just attended the seminar on train law this March and no way does the tax increase reached over 100% hehe. They have used so many wrong arguments already.

I want to know if they still use the words "no inflation" in their sales presentation until your time. Coz that's what they were strongly using when I purchased. And tama ka, because of how they repeated those words, I expected no increase within my contracted term also.

Sige let's compare notes. We need to strengthen our arguments to get the implementing body to our side.

I hope we could also find someone who recently purchased, like 2017 or even 2018. If the increase was already mentioned.

I re-filed my complaint with DTI FTEB today for arbitration to ftebmediation@dti.gov.ph (their office is in Makati, just right across Club Ultima).

To Rafael King
Chairman of J.Kings and Sons Co.
Mother company of Crown Regency and Club Ultima
christine.bernardo@clubultima.com - his secretary for Club Ultima
032 2550155

If DTI hears us saying the very same things in our complaints, even if Club Ultima did not put all their verbal promises to us in writing. I believe we still have a chance in solidifying our claims for their trained and misleading sales pitch.

I clearly recalled I was convinced by Club Ultima’s sales agent to buy this vacation package, promised then and made to believe, that with the package bought, I am protected from inflation, should the hotel decide to increase later on. That's why we were offered the product. That is where I have set my budget.

The recent increase was really surprising and not amenable because there was no mention that something like this will happen, to have at least allowed me to carefully give it a thought, before agreeing to buy.


It was confirmed to me from all written papers provided that I only need to pay for for the P6,720 each year to be able to use my allotted 7 nights of vacation.

After going through initial mediation, Club Ultima still want me to pay for the increased fees or I cannot use anything that I have paid.

Because of their change in price other than what they have convinced me to buy, I am requesting through DTI FTEB the case be subject to their investigation, re-appealing that I be provided other option like be refunded for the unused portion of my purchase.

I believe that for Club Ultima forcing me to pay for the increased price or cancel my purchase
without returning any form of value for my unused payment is not right.

Their increase goes contrary to the “no inflation” benefit they have used to convinced me to purchase this vacation package in the first place.

I am persistently requesting through DTI FTEB that I be provided value for my unused payment.

Further stating that –

I felt misled by Club Ultima in more ways than one. What was promised is different from fact.

1. They said I have room price advantage for buying this membership package.
But in fact, I do not. They are offering their rooms on line and elsewhere, cheaper.

2. Lack of transparency during point of sales, particularly concerning pricing, was not disclosed / they have concealed.
Price of the room – that they offer the same or even lower price to those who did not purchase this vacation package.
Possible increases - their agent were all trained to promise that for buying, we are protected from inflation and future increases – which is contrary to what’s happening now.

3. We are provided priority as members.
I get very late replies for confirmation when I book. In many instances, my bookings gets declined.
As a paid customer, I am ignored for valid concerns, as narrated.
It has been so difficult to reach them, their phones are not working or they do not have answers commensurate to the value of what I have paid.
Service is below average for the price paid.

4. I will be provided assistance to sell my membership.
I had approached their Membership office a couple years back, yet they declined to assist me on this.

With all these, it made me quite dissatisfied for the purchase made.

If you have the same experience, I encourage you to file the complaint. Let's do this together and be persistent about it.

I write this for the benefit of Club Ultima members who do not agree nor want pay the increased annual maintenance fees that started this 2018 and who are still in the dark of what to do.

Thanks to someone whose DTI regional head defended her cause on this, she got a settlement from Club Ultima. That DTI head pointed out to Arlene Cabaddu of Club Ultima that our contracts do not mention anywhere that we are subject to increase, making it faulty, so either they change the contract and make the fee P6720 yearly all throughout our contract perior or they they should offer refund. Club Ultima chose the later.

Because of that, in my 2nd DTI mediation today, I was offered the same settlement by Club Ultima.

However, I think the offer was a bit insane.

I am being charged P6,000 for every voucher I used in the past to be deducted from my full vacation package payment. Even when I am fully paid, I ended up owing them money!

Because of the various promotional room rate Crown Regency Hotel has on the net (from P2,000-P3,000/night only - try to google), I am not very happy already with my member's room rate at P2493-P2712/night.

With the P7200 annual fee increase, I cannot accept the +P1028 more a night, making it P3521-P3740/night.

So why would I accept the price of P6,000/night/voucher deduction from all my payments in the settlement?

I told them I am not stupid.

I decided to proceed filing for arbitration on DTI's advise and encouragement.

I have to prepare well for my position paper to show the arbiter how Club Ultima is unfair in their business practice to win the case.

DTI's performace rating here serves as my encouragement -
https://www.dti.gov.ph/media/latest-news/10465-dti-strengthens-consumer-protection-redress-mechanism

For those who read this, pray that I will win. I also need encouragement for fighting alone. Coz those who said they will join me for the class suit, aren't....

Yet once we have a positive record with DTI on this, I believe it will pave the way for easier claim on unfair business practice by Club Ultima for future complainants as well as with other vacation companies.

Here's posting an update.

God sent people to help me with my position paper. A cpa lawyer from a prestigious law firm, a lawyer who works for the supreme court, 2 fellow club ultima members who signed my affidavit as witness to how club ultima offered their products to us, and their promises to us on the benefits.

I submitted my position paper last April 25. I got interviewed by the handling adjudication officer. I was surprised how she spoke antagonistically towards me.

Club Ultima submitted first before I did. So I pressume Club Ultima got interviewed before me to have influenced the assigned officers attitude towards me.

I am in the business of arranging travel. Club Ultima perhaps stressed that I was doing this for profit. To discredit my complaint, for not being the end user and to be disregarded as a consumer, and my complaint be removed from DTI's jurisdiction, which is my consultant's opinion.

When in fact Club Ultima promotes to all of us that one of our benefit is we can sell our vouchers. And during presentation, when they learned that I was into travel, they used that to push their package more, saying I can use it both for personal and business.

Club Ultima is not only unfair, but also sly in using the benefits they provide us, against us.

I just pray that this DTI officer will see the obvious unfairness of Club Ultima and arrive at a fair decision for us, being on the obvious disadvantage.

I observed that even with Fair Trade Commission Bureau, they are passive in doing their mandate of promoting and executing fairness. All evidence and persistence has to come from the complainant.

So I encourage Club Ultima members who will file the same complaint, to not lose heart, to not give in, to not give up.

It's not an easy journey, it's stressful, it's even disheartening. But think of it as you are working on something you deserve. You deserve fairness. It's not DTI or Club Ultima who will give this to you. You have to get it yourself. You have every right to claim what you deserve. So do it with all you can and with all your might, when possible. We cannot. expect somebody else to take care of it for us.

I believe that God will award what is due and shall reward our efforts in this pursuit.

File your complaint, brace yourself, and be prepared.

Lastly, I encourage you not to give in to unfair settlement. Coz that's allowing yourself to get ripped off with your full consent. It defeats your purpose in pursuing fairness in the first place. It will also make the unfair party thrive.

Please pray that fairness will be awarded to me, this will make other Club Ultima members' fight easier, since the ruling will benefit the following batch of complaints.

How unfair is Club Ultima? Let's identify it -

I bought my package in Sep 2011

It was a pressure sale, they will require you to decide and to pay on the spot.
They will tell you that they are giving you the price advantage which is offered for that day and time only and you will not find it any where else.

They will further say that you will enjoy 4-5 star standard hotels, when in fact they and all the hotel affiliates they offer are only 3to3.5 star, tantamounting to false representation.

The gross price for the 15 year Vacation package is P230,000
I was given a 30% discounted price of P161,000 (surely many of you paid more)
Adding the P6,720 annual fees x 15 = P100,800
= P261,800 / 15 years / 7 vouchers
= P2,493.33/night for room only
Fully transferrable, you can give it away or sell it.

I did not bring cash, check or credit card that time, they still asked me to sign and sent a collector to my house right after the presentation to swipe my card.

Oct 2012, when I called their membership office, they said they are reselling other members voucher in case I need. I asked how much, they said P2,000.

So comparing the price they sold it to us, against the price they "help" us sell it, obviously Club Ultima put members at a disadvantage for reselling palugi.

So where's the member's advantage here? And who is the only one gaining?

In 2016, I received fliers from their room sales office for sale prices from P2500-P3000 with bfast for their various hotels.
Members had to buy 15 years x 7 nights = 105 vouchers, just to get their so called price advantage but in fact is a disadvantage.
I complained to their office and there was no action.

You can also easily google Crown Regency rates they offer through various booking engines like tripadvisor, trivago, booking.com, agoda, travelbook.ph, etc and you will see the same price drop until present, 2018.

As if the above is not enough, this 2018 they said they are increasing the annual fees for the voucher by adding P7,200 on the annual fees / 7 vouchers = +P1028.57 per night more disadvantage in terms of pricing.

P2,493.33/night previously + P1028.57 increase = P3,521.90/voucher or /night for room only

They think we do not know how to count, they think they can abuse members as much as they can and just easily get away with it.

I complained with DTI. They offered settlement by charging past voucher used at P6,000. On top of the existing false representation, they want to further abuse me by making me pay more.

Their violation -
Republic Act No. 7394

VIOLATED SECTION 50 OF THE CONSUMER ACT OF THE PHILIPPINES ON PROHIBITION AGAINST DECEPTIVE SALES ACTS OR PRACTICES.

Article 2. Declaration of Basic Policy. — It is the policy of the State to protect the interests of the consumer, promote his general welfare and to establish standards of conduct for business and industry. Towards this end, the State shall implement measures to achieve the following objectives:

a) protection against hazards to health and safety;
b) protection against deceptive, unfair and unconscionable sales acts and practices;

Article 50. Prohibition Against Deceptive Sales Acts or Practices.– A deceptive act or practice by a seller or supplier in connection with a consumer transaction violates this Act whether it occurs before, during or after the transaction. An act or practice shall be deemed deceptive whenever the producer, manufacturer, supplier or seller, through concealment, false representation of fraudulent manipulation, induces a consumer to enter into a sales or lease transaction of any consumer product or service.

a) a consumer product or service has the sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have;

b) a consumer product or service is of a particular standard, quality, grade, style, or model when in fact it is not;

c) a consumer product is new, original or unused, when in fact, it is in a deteriorated, altered, reconditioned, reclaimed or second-hand state;

d) a consumer product or service is available to the consumer for a reason that is different from the fact;

e) a consumer product or service has been supplied in accordance with the previous representation when in fact it is not;

f) a consumer product or service can be supplied in a quantity greater than the supplier intends;

g) a service, or repair of a consumer product is needed when in fact it is not;

h) a specific price advantage of a consumer product exists when in fact it does not;

i) the sales act or practice involves or does not involve a warranty, a disclaimer of warranties, particular warranty terms or other rights, remedies or obligations if the indication is false; and

j) the seller or supplier has a sponsorship, approval, or affiliation he does not have.

Article 52. Unfair or Unconscionable Sales Act or Practice. – An unfair or unconscionable sales act or practice by a seller or supplier in connection with a consumer transaction violates this Chapter whether it occurs before, during or after the consumer transaction. An act or practice shall be deemed unfair or unconscionable whenever the producer, manufacturer, distributor, supplier or seller, by taking advantage of the consumer's physical or mental infirmity, ignorance, illiteracy, lack of time or the general conditions of the environment or surroundings, induces the consumer to enter into a sales or lease transaction grossly inimical to the interests of the consumer or grossly one-sided in favor of the producer, manufacturer, distributor, supplier or seller.

In determining whether an act or practice is unfair and unconscionable, the following circumstances shall be considered:

a) that the producer, manufacturer, distributor, supplier or seller took advantage of the inability of the consumer to reasonably protect his interest because of his inability to understand the language of an agreement, or similar factors;

b) that when the consumer transaction was entered into, the price grossly exceeded the price at which similar products or services were readily obtainable in similar transaction by like consumers;

c) that when the consumer transaction was entered into, the consumer was unable to receive a substantial benefit from the subject of the transaction;

d) that when the consumer was entered into, the seller or supplier was aware that there was no reasonable probability or payment of the obligation in full by the consumer; and

e) that the transaction that the seller or supplier induced the consumer to enter into was excessively one-sided in favor of the seller or supplier.

Use the above. Google. Know your rights. File your complaint today. It's free.
Just go to https://www.dti.gov.ph/consumers/complaints

Club Ultima can only get away when you let them.

Today, I received the decision from DTI Adjudication office - dismissing my complaint for lack of merit. Discrediting all claims I made on Club Ultima's unfairness - yes all.

I shared this to my friend and she told me to understand - DTI are gov't emloyees, they receive low income, any form of bribe they will easily take. From how the adjudication officer treated me last time, yep it felt like she was already on their side even before she met me. She had 20 days to review my paper. I submitted on Apr 25 and the decision was signed May 3. Hmm... I think 5 working days is too soon. Naluto na kaagad.

I am just waiting for my lawyer friend to be back next week to help me prepare my Appeal with the Court of Appeals. My friend further said that at Court of Appeals, it will be more expensive for Club Ultima to bribe, coz it's at least 500k. It would have been better for them to have settled. So Club Ultima will have to keep spending if I continue fighting. And to think that I don't have to spend anything, just my time and effort, and my drive to obtain the fairness due me.

Because of DTI's disheartening ruling I asked my friend if there is a point in what I'm complaining. She sez of course Club Ultima is unfair! I guess it's important for me to know that someone can see what's wrong, other than me. I guess that's enough to keep me going again until I reach its end.

The expected fee is P5,000 for filing and perhaps paying a lawyer to prepare and sign the position paper (maybe P5,000) to drive the only sole point of why I had to buy their vacation package of 15 years when I can get the same room price or even cheaper by just booking online. At stake is 200K of hard earned money. So I guess I could spare a couple of thousands to fight for my cause rather than have Club Ultima take all of it just like that.

There will be no hearing, so no further lawyer fees. Preparing my new papers is as crucial.

She said at the Court of Appeals, it will be a different arena, and fairly different from DTI.

I hope all of you who reads this and who are in the same boat will be encouraged to make time to keep going especially if you feel taken advantaged of. If they aren't fair, let's not make it easy for them either. Let them keep spending on bribe here and there, as well as pay for lawyer fees in answer to us. They deserve it.

A lawyer friend also Mentioned Metropolitan Trial Court, they help with small claims or amounts. That could also be an alternative.

Let me just share this jurisdiction on Unfair or Unconscionable Sales Act or Practice -
http://sc.judiciary.gov.ph/jurisprudence/2011/april2011/189655.htm

I may need more fellow members as witness (depending on what my lawyer will further require). If you are a Club Ultima member, please feel free to contact me if you are willing to help. Especially those from Manila or near Manila, coz I may need your original signatures.

Also, for those who would like to post here, just register by creating a user name and password - it's very simple.

I hope we can help each other in this. Feel free to reach me too if you need assistance concerning this matter. I'd be happy to be on any help in any way I can.

With the help of a lawyer, we sent out our appeal to the DTI Secretary yesterday - it's not Court of Appeals pa pala (I am no lawyer so the info they provided wasn't simple to understand for me).

Thanks to fellow members who had prayed and supported me in this. Deeply appreciate it.

For complainants, you may want to not this important thing on Republic Act No. 7394-

Article 169. Prescription. – All actions or claims accruing under the provisions of this Act and the rules and regulations issued pursuant thereto shall prescribe within two (2) years from the time the consumer transaction was consummated or the deceptive or unfair and unconscionable act or practice was committed and in case of hidden defects, from discovery thereof.

If you are late to doing anything, then your right to complain will expire.

i hope there will be a class lawsuit filed against club ultima..

That's only possible if those who hope for it would commit to really work together.

Coz many who hoped and responded had no real action - some opted out for their own interest, some are busy with their own work and business to even prepare promptly documents required for it, some who started with it gave up because it's tedious and requires time.

Here's the progress of my complaint by the way.

I sent my Appeal through registered mail last May 18 (coz the Adjudication officer of DTI seemed to have sided with Club Ultima - I dunnu for whatever reason) to arrive at a decision that offers me zero benefit or see any of my claims valid.

To my surprise, the registered mail cc to the Adjudication officer returned May 29. So I went to the post office Tue, and further learned that they lost the 2nd mail also which is for the DTI Secretary.

So I had to prepare another set and brought the copies to their offices yesterday. It's now with DTI Legal Department, who will in turn write DTI FTEB to retrieve my documents with them, as well as summon Club Ultima to reply to my Appeal. So another 30 days of wait.

I still hope and pray that I win. karensasuman79 do pray that I win, coz when I do, it will automatically apply to all members in the same situation. Even if the class suit you hope for doest happen.

Hi all, I also want to cancel my membership, the annual fee increase is unacceptable. Indeed, this is a.scam. please help, whom can I contact here?

Hi Ewika, I have accepted your request. Best that we speak if you would like to file the complaint so I can share with you how you can go about it - at least how I did, and how you can prepare well for it. Maybe if you can send me your contact details through private message for us to communicate / for me to give you a call.

Hi, I am from Cebu and I am a Club Ultima member been since 2008. I want to surrender my membership back to the Club but they told me they cannot buy back my membership because they have not yet fully sold all their memberships. I told them that during the orientation meeting we attended prior to buying membership from them, I distinctly remember them telling us that the club will buy back the membership from us anytime, and at the current selling price. It was one of the perks they offered, meaning, my money would grow over time and I can recoup my investment. But now, they are evasive and had not replied to the email I sent them. My questions is this. Can I compel them to buy back my membership even if the promise to buy it back was not expressly written down. I honestly thought it was my fall back if and when I decide to stop being a member.