RCI Class Action Lawsuit

The options won in this lawsuit are a joke. The lawyers are the winners as usual; highly paid pranksters or gangsters which ever suits your anger pattern. Your choice is to suck it up, hire a personal lawyer, or use up the timeshares you have listed with RCI and dump them. I am choosing the latter. If all of you out there choose the latter suggestion RCI will be the biggest loosers in the end as they watch there inventory pludge into the debts of non-existence. There are several other timeshare exchange companies available. I havn't tried them yet but plan to as soon as I dump RCI. By the way Interval is just as bad so don't go with them. I know there is one in particular that allows you to look at there availability to exhange without you first giving up your resort to them. As soon as I investigate this option again I will post it. Lets not just get mad lets do something about it. Helping RCI go bankrupt could be really good therapy and revengefully delightful. I only wish the lawyers involved could find their rightful place in hell sooner than they expected. And don't give up so easy and give away your investment which in most cases was an expensive investment. The original idea sold to you was a good one. It was just misused and abused. I have also seen on the internet where timeshare owners have set-up their own free exhange sites. Another problem messing-up the orignal idea are the mismanged resorts themselves which have allowed their resort to loose value through lack of remodeling and improving their properties and letting them run down. Owners need to take an active role in demanding the the members of the association not let this happen. In other words fight back but let us be smart about it by working together. It might take time but RCI and their affiliate Interval will fall apart if we just all pull out. (:) Then hopefully we will not be just victims but victoriously happier people on a happier vacation experience. (:) Reanie

Our resort is in the all year red zone and I was also unhappy with the exchange opportunities even so I do everything RCi recommends for maximum trading power. No wonder if RCI rents weeks for profit rather then exchanging them to us for "just" $168 per week. Also the benefit is meager I joint the class action law suit to make a point!

I spent from about 11:30 p.m. to 2:30 a.m. last night trying to type a summary of the RCI litigation results. RCI does offer a few baubles just to get this over and done with but clearly does not feel the plaintiffs charges were justified. No clear proof of any guilt was presented. Said plaintiffs will probably never believe any proof of innocence. Basically, the judge told everybody to take their marbles, go home and stop bad mouthing each other. RCI promised to get resorts to do a better job of explaining how RCI works (stop promising miracles) and restated most of the rules and explanations of how RCI works which are already on their website for any who takes the time to read them. The whole Settlement Agreement runs 44 pages plus attachments. I never did figure out who pays the lawyers. It seems to be a case of "to each his own." A couple of lead plaintiffs got $375 or so for their time. In other words, this was a big waste all around. MD

This case is NOT yet resolved, so any and all conclusions regarding its' outcome are still a bit premature. That said, I DO think a completely useless and worthless outcome is now quite likely, since the plaintiff attorneys are clearly willing to sell their clients down the river for a few worthless trinkets (...although these toothless sharks will themselves be handsomely rewarded for their "billable hours"). RCI is ready to agree to a few minor, insignificant (...and very temporary; lasting for only 24 months) changes in their "inventory rental" practices, after which it will be right straight back to "business as usual" for RCI.

In any event, the next "fairness hearing" in this case is currently scheduled for November 30, 2009 in Trenton, NJ. The case isn't actually OVER however until Judge Peter Sheridan overtly says so...

Can we appeal to the resort managements? I'm thinking of the sales office at Maui Ocean Club. If they had owners storming the place complaining about Interval International (loudly) as they are trying to close timeshare deals -- well, something like that. Fortunately I dumped Interval early on when I realized they were useless (and pricey) -- I just want to go to my home resort in Maui. But the lack of trade value is a huge deal and prospective owners should hear about it. I'm thinking Marriott might have some clout with these ripoff outfits if they start to see an impact on sales. Perhaps wishful thinking.

Does anyone know who we could contact at Disney. I have been a member at Interval Intl and RCI for years and recently renewed my membership at RCI because they got the Disney properties. I very had a problem exchanging at Int Intl for a DIsney property (I request the least popular week) but was told by the rep at RCI (after a renewed) that getting the exchange for Disney will not happen. I think member boycotts will do little to influence RCI, we need to get the Disney's of the world to look at their affliations and decide that they are better doing business with other companies that allow their timeshare holders to exchange their units more fairly. I think it was awful that DIsney changed from II after all those years to RCI and their corrupted practices. RCI must have paid them big for the rights but maybe with enough complaints they will revisit it when the contract ends.

You have to have a really strong trader to get into the Disney resorts whether you belong to II or RCI.

I just booked a week at Disney's Villas at Wilderness Lodge for April 2010 with my banked week through RCI. I have seen numberous weeks for rent for outragerous prices, even if coming available in a few weeks.

Your week has to have very high trading power and not be in the Orlando area to trade into Disney.

vivianh26 wrote:

Can we appeal to the resort managements? ....the lack of trade value is a huge deal and prospective owners should hear about it.

This thread has certainly now drifted VERY far afield of its' actual original topic (...which WAS the class action lawsuit against RCI...).

That said, however, no resort and /or its' management really has much at all to do with the "trade value" of ANY week / unit ANYWHERE.

With RCI, "trade value" is a "man behind the curtain" mystery whose details RCI has always declined to reveal, but is certainly based in part upon simple supply and demand. Interval Intl. has a more "like for like" approach to establishing "trade value" (studios generally only get other studios, 1 BR gets only another 1BR, etc.), but supply and demand considerations certainly factor into the II valuation process as well.

However, all individual exchange company internal procedures aside, exchange value is influenced by other market influences. For example, a very few years ago, Hawaii ownerships were like gold bars and would get you almost anywhere else you might want to go when deposited for exchange. Then, along came high fuel prices, exorbitant airfares and fewer available airline choices and --- POOF!! Gone in a flash was that "gold bar" exchange value of a Hawaii timeshare, since the cost of getting to Hawaii at all in the first place became a severely limiting factor (indeed, an outright liability) in and of itself.

In short, there are assorted and fluctuating factors which can (and do) influence both "supply and demand" and "trade value", but an individual resort and /or its' management cannot (and does not) really factor into that equation at all, except in the relatively rare instances where the resort itself has been physically run into the ground by gross mismanagement and / or financial impropriety.

I just want to share my opinion and experience with RCI. Quite frankly, I don't care who benefits from the lawsuit as long as people are aware that there is some shady dealing with this whole timeshare thing. I bought a timeshare in Las Vegas since that is one of my favorite vacation spots. I had bought a double unit so I could use one week a year in one suite or both units for a week. I was told by my resort that I HAD to deal with RCI to use my assigned week(s) and my weeks must be banked with them. So I did that as I wanted to use both units at one time. When I went to "book" my assigned week for both units, I was told by RCI I had to pay $164 per unit to use each one. If I am paying $3900 a year in timeshare payments and a yearly membership fee to RCI, I could NOT see why I had to pay an additional $328 to actually use what I was supposedly buying. I think Grandview must have a deal with RCI since they told me I could only go through RCI who wanted to charge all this additional money for something I was buying. In the pep talk to buy, there was no mention of fees to actually use the week you were buying. I've been to Vegas enough that I get all kinds of deals at the major hotels. I've stayed at the Luxor for a week for less money than what RCI wanted just in the fees mentioned above. What's the point then? I dumped my timeshare and RCI!! And I save money in the long run by just going to Vegas when I want at good discounts.

Is Grandview in Las Vegas an RCI Points resort? Otherwise, I don't understand why you would need to bank anything with anybody to use it. If you wanted to bank one of your two suites to be exchanged for a week elsewhere, then you would go through RCI, but if you were using one of your units where you bought it, what does RCI have to do with anything? If it IS an RCI Points resort, your situation makes more sense, but the exchange fee should be lower than what Weeks Members pay for an exchange. MD

I have been trying for two years to get a resort in Santa Fe, New Mexico and I know this is prime and would be difficult. When I go into the availability for exchange in Santa Fe it comes up as no resorts available and I put in for the entire year. But, when I go into the Extra Vacations at RCI one resort comes up with at least 30 available weeks. This has happened to us several times before so we end up gong to a different location. I have believed for eyars that RCI hold back prime weeks to rent as extra vacations and therefore they are not available for exchange

Listening to the terms of the settlement- I feel that being part of the class action is not worth it. Agree- the attorneys will be the ones who benefit- not us.

For the past few years I have run into this same problem and results of finding several weekly rentals at the same time. I put in for anything in the northwest around Seattle and Vancouver in July of 07 for the month of June 08 and I used a two bedroom red week in a good location and tried to trade for even a one bedroom condo and could never get one. Still there were dozens of weekly rentals all over that area through RCI. It became obvious that there was some inappropriate activity going on with them. Their response was that those weeks were extra they listed for the condos and not timeshare spacebanks.

If You Are No Longer an RCI Weeks Member - What Can You Do?

You may or may not get an E-Mail or postcard from the Class Action Administrator and even if you do your take on what is going on may be wrong.

The lawyers in the case before the Federal Court have reached a settlement among themselves; but a Fairness hearing is still pending.

If you do not want to opt-out of the "class," you can put in a claim for one of the relatively insignificant benefits being offered to "class" members.

But, you can also "object" to the Settlement as proposed. There is a growing ground swell of objectors and a possibility that the current Settlement may not be accepted by the Judge hearing the case.

To anyone who comes here to "vent" or seek guidance.

If you have stopped your membership with RCI since 2000 or are contemplating ending your membership you must have had a reason for leaving the fold.

People who were members of the RCI Weeks Exchange Program at any time from January 1, 2000 through August 31, 2009 are members of the settlement "class."

YOU STILL HAVE A DOG IN THE FIGHT!

NOTE: If you are or were a member of the RCI Points Exchange Program, but you were not also a member of the RCI Weeks Exchange Program at any time from January 1, 2000 through August 31, 2009, you are not a member of the Settlement Class.

Those of us who strongly feel that this Settlement proposal is wrong and that RCI should be held accountable need help to get enough OBJECTORS!

We need well over a thousand members of the class to object in writing to the settlement.

If you are a former Member of RCI WEEKS or about to become a former Member of RCI WEEKS you should also consider objecting to the possibility that the Plaintiffs attorneys may be granted up to $4,000,000.00 in legal fees.

If YOU think that it is fair for RCI to receive a COURT's stamp of approval to RENT deposits made by MEMBERS OF RCI, then so be it!

If the Settlement is approved (and it is likely to be approved UNLESS enough members of the "class" OBJECT), RCI will be able to point to the Court Approved Settlement of This Class Action and say:

"For two years: You as an EXCHANGER can deposit your week more than 12 months before the check-in date and RCI will leave your week for other Exchangers for up to 31 days from the date of deposit.

After 31 Days, including the date of deposit, RCI is free to use the UNIT for any purpose and without limitation for RENTAL."

"If you as an EXCHANGER deposit less than 12 months before check-in, RCI is free to use the UNIT for Exchange or for RENTAL if there is no Exchange Request for your WEEK on the date of deposit."

What happens after the TWO YEAR period has expired?

I will leave it up to your imagination!

On average, when you did deposit a UNIT with RCI how many months before check-in did you make your deposit?

When you begin your search for a Vacation how far in advance on average do you set-up the search?

If this Settlement is approved the door is WIDE open for any EXCHANGE company to take your deposits and OPENLY RENT the UNITS.

Redweek Members can come here to rent of do an Exchange; but where will unsophisticated Timeshare EXCHANGERS go to make their exchanges?

Folks, we are on the edge of a slippery slope. How long before we completely lose the ability to Exchange with a major Exchange company? __________________ Dave

All my posts are based on my personal experience or should be considered my personal opinion about the subject being discussed.

Dave, the main problem I see with this lawsuit is that RCI plainly states in their Terms and Conditions that once you deposit your week with them then it's theirs to do with that week what they wish (section 6C "By depositing vacation ownership with RCI, you relinquish all rights to use that vacation ownership and agree that such deposited vacation ownership may be used by RCI to conduct exchanges, inspection visits, promotions and for other purposes at RCI's discretion.")

This is why I do not believe this lawsuit has a legal leg to stand on.

jayjay wrote:

Dave, the main problem I see with this lawsuit is that RCI plainly states in their Terms and Conditions that once you deposit your week with them then it's theirs to do with that week what they wish (section 6C "By depositing vacation ownership with RCI, you relinquish all rights to use that vacation ownership and agree that such deposited vacation ownership may be used by RCI to conduct exchanges, inspection visits, promotions and for other purposes at RCI's discretion.")

This is why I do not believe this lawsuit has a legal leg to stand on.

Jayjay,

You are correct that RCI has in the past "plainly stated in their Terms and Conditions that once you deposit your week with them then it's theirs to do with that week what they wish.

In the 2005 Directory for example on page 473 under item Number 6. Depositing Vacation Ownership and Requesting an Exchange the Directory states:

(c) By depositing Vacation Ownership with RCI, you relinquish all rights to use that Vacation Ownership and agree that such deposited Vacation Ownership me be used by RCI to conduct exchanges, inspection visits, promotions, rentals and for other purposes at RCI's discretion.

Similar wording apparently existed in years earlier than 2005 and apparently up until this year.

I just received by New 2009 Directory today. Guess What! There no longer is any mention of "Terms & Conditions" that I can find in that Directory.

What's up with that!

Now back to your post and "your problem."

I am not a lawyer. I am just another average timeshare owner and consumer who up until rather recently had no idea that RCI was "skimming" high demand weeks when they were deposited by folks like me.

Yes, apparently they have been replacing those high demand weeks with "dogs" from HOA's, developers and hotel rooms and saying that all is well in the timeshare world because we have "balanced inventory."

It is my understanding that RCI's Terms and Conditions as published prior to the recent directory are what contract law lawyers refer to as a "Contract of Adhesion."

So what is a Contract of Adhesion?

According to the Free Dictionary by Farlex :

"A type of contract, a legally binding agreement between two parties to do a certain thing, in which one side has all the bargaining power and uses it to write the contract primarily to his or her advantage.

An example of an adhesion contract is a standardized contract form that offers goods or services to consumers on essentially a "take it or leave it" basis without giving consumers realistic opportunities to negotiate terms that would benefit their interests.

When this occurs, the consumer cannot obtain the desired product or service unless he or she acquiesces to the form contract."

There is nothing unenforceable or inherently wrong about adhesion contracts. In fact, most businesses would never conclude their volume of transactions if it were necessary to negotiate all the terms of every Consumer Credit contract."

Note, however, that NOT all adhesion contracts are valid. Many adhesion contracts are Unconscionable; they are so unfair to the weaker party that a court could refuse to enforce them.

A court could find that there is no meeting of the minds of the parties to the contract and that the weaker party has not accepted the terms of the contract.

In the instant example a court could find that RCI's failure to openly disclose the fact that they skim the cream of deposits and replace them with "dogs" is unconscionable because RCI has hidden the statements quoted above by burying them where most members would not see the disclosure.

A Court could find that there is no meeting of the minds of the parties to the contract and that the weaker party (the unsophiscated timeshare owner) has not accepted the terms of the contract.

While the above could be argued in court, it is not likely that the court would find in favor of the plaintiff just because the plaintiff did not know about the contract terms.

But there is the possibility that the court would look to see if the writer of the adhesion contract had instructed it's employees to provide misinformation about what it as a company was doing.

According to the adhesion contract you're stuck when you go along with an arrangement that fits the above description. But, did the average timeshare owner know that RCI was renting deposits meant for exchange?

If the average member eventually suspected that RCI might be renting good weeks instead of allowing them to be exchanged and he "called RCI on it" would he have been misled?

Have you ever asked a Vacation Guide the following question: "Does RCI rent deposits of Weeks Inventory that has been deposited by members for exchange?

How many Redweek Members out there were aware of the clause being discussed here?

If you have the clause in an older RCI directory read it carefully. What does it mean to you?

Were you informed about the clause when timeshare was pitched to you during a presentation about RCI and its benefits?

Yes, RCI relies on the above mentioned clause when it insists it has the lawful right to rent weeks. But, were they carrying out a deception on the consumer when they denied that deposits made by that consumer were being rented?

Dave

Quote:

Were you informed about the clause when timeshare was pitched to you during a presentation about RCI and its benefits?

Yes, RCI relies on the above mentioned clause when it insists it has the lawful right to rent weeks. But, were they carrying out a deception on the consumer when they denied that deposits made by that consumer were being rented?

Therein lies one problem .... many developer salespeople tell prospective buyers that they can go ANYWHERE in the RCI Wishbook in order to make a sale, they don't mention anything about exchange power of a given week and how supply and demand rules in the exchange world ..... RCI has absolutely nothing to do with what salespeople tell possible buyers concerning exchanging ..... that's a whole different ballgame and should be addressed in a diferent court of law, but that has nothing to do with this case.

As far as possible deception by RCI concerning renting of deposited weeks .... it will be interesting to see how this plays out in the end, but I can guarantee you that RCI lawyers will rely on that clause (section 6C) in RCI's Terms and Conditions.

I don't have a dog in this fight as I no longer own any timeshare weeks or belong to RCI or II, however I did get the postcard in the mail concerning the class action lawsuit since I was a a member of RCI for several years previously.

BTW, you are a very articulate writer.

jayjay,

Thank you for the compliment. I try hard not to just shoot from the hip. You too are very articulate and someone that many readers will respond to when deciding what they should do about objecting or not objecting to the currently proposed settlement.

It is important to me that everyone know that a "member of the class" can make a claim while also separately objecting to the proposed Settlement. We need to get the word out and at timeshareforums.com and tugbbs.com, I am doing my best.

If you look me up at the previously mentioned sites my Username is Goofyhobbie.

Recently a website was created and dedicated to helping "objectors" get the word out.

The site was created as an informational resource for each and every current or former RCI "Weeks" Member.

For those that realize that RCI is just offering a "token benefit" and very little in the way of program changes, objecting is something they should seriously consider. Jayjay, if you or any one else interested wants good information about objecting glance at the site. It is very easy to navigate and is quite informative.

http://rciclassactionlawsuit.com/

The proposed settlement needs some serious revision before it is accepted by the Court.

There are literally thousands of folks who are just now finding out that RCI has been "skimming" good weeks as they are deposited and immediately making them available for rent at prices below what the owner of the week had to pay in maintenance fees.

Some have reported that they have benefitted from RCI's greed as much as a year or more in advance of the check-in date by going to such sites as Skyauction.com and simply bidding without much competition for great vacations at Resorts and times that are in high demand.

Those buyers of the opportunity to use a Week at a condo paid for by a timeshare owner are making out like bandits while redweek.com renters of comparable weeks try to compete for that renter business.

Yes! Bargain hunters are getting access to timeshare weeks that were deposited into the RCI Spacebank for the purpose of exchange for far less than the owner had to pay in maintenance fees and exchange fees. That of course says nothing about the amortized cost that the owner paid upfront when they made their purchase. Why would any sophiscated Vacationer rent a timeshare at Redweek.com or purchase a timeshare from a Redweek.com seller?

RCI and other major exchange companies have nothing or very little invested in the value of Weeks that they skim off of the top and make available for rent. Almost everything that they receive in income from affiliates such as Skyauction.com goes directly to RCI’s bottom line. Meanwhile, the individual who deposited the Week is like other exchangers looking to get high demand weeks that simply are not available because the exchange company (in this case RCI, chooses to put those prime weeks to other use.

Please encourage as many as you can to visit http://rciclassactionlawsuit.com/

Dave (Goofyhobbie)

does this lawsuit apply to points-system folks?