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No jurisdiction, no joy... (by KC):

johnh2140 wrote:

Thank you Ken, That being said, most of the comments on Redweek are similar and most people are out some money. So, should one be worried of being foreclosed on because they still owe money, since contract was signed in Mexico? Because you may be right on recouping our investment, but then what legal right do they have trying to recover rest of their investment? Why are some people's credit being affected? This tells me they have some interest in a business here in USA that's affiliated with Krystal? And if so, wouldn't that give ones right for an inside track of suing these fragulent thieves? Thanks, John

John, you raise some interesting and thoughtful questions, some of which cannot be answered without knowing details about the corporate and organizational structure of "Krystal". On other points however, I'll offer my personal views and opinions.

I do not believe that Krystal needs to actually have a physical presence in the U.S. in order to initiate a negative credit report. That said, I am frankly inclined to believe that they would never even bother to do so UNLESS there was also a LOAN involved in the transaction. Defaulting on ANY loan is very likely to have negative credit report consequences.

It might be that "Krystal" simply uses (i.e., hires) a third party payment processor in the U.S. for convenience and / or currency conversion. *IF* that's the case, I doubt that Krystal merely employing a third "payment processing" entity would actually provide the "reach" to pursue legal proceedings in the U.S. against a Mexican business entity regarding a contract executed in Mexico. I'd be glad to be mistaken in that view, but that's how I see it with some confidence based upon very limited information and details here regarding Krystal.

Since this is apparently a "right to use" membership contract (as opposed to deeded ownership of anything), it is not literally a "foreclosure" that they would (or ever could) initiate after non-payment. More precisely, it would be a termination of the membership for non-payment and cessation of future access and use rights upon membership termination. That's certainly not the worst thing in the world (in saying that, I certainly do not mean to minimize or dismiss the permanent loss of money already paid to those parasites).

The good news (if there is any here) is that the chances of Krystal actually attempting to initiate collections in the U.S. are, in my opinion, essentially ZERO. After all, the contract was executed in Mexico and they are "out" absolutely NOTHING of any substance. They can and they will ultimately terminate that "membership" for non-payment, but will then almost certainly just move on. They know perfectly well that there are plenty of other gringos who will soon enough come along, pony up money and sign on the dotted line.

This "Krystal" entity is one whose corporate and organizational details are completely unknown to me. All I can say with certainty is that it would NOT be cost effective or productive to attempt litigation against an entity in Mexico. On the plus side, it is my strong belief that they are never going to attempt to pursue you either (nor any other U.S. or Canada citizen). They simply have no horsepower or jurisdiction outside of Mexico.

I am genuinely sorry that you ever chose to get involved with these thieving parasites.