RCI Class Action Lawsuit

[myolite]

Thought this might be of interest to us DVC'ers....

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RCI Timeshare Weeks Exchange Program Class Action Settlement
If you were a member of the RCI Weeks Exchange Program at any time from January 1, 2000 through November 30, 2008, you may be eligible for benefits.

The lawsuit claimed that RCI rented deposited weeks rather than make them available for exchange.

You may participate in this settlement only if you were a member of the RCI Weeks® Exchange Program at
any time between January 1, 2000 and November 20, 2008. To make a claim, either (i) complete this Claim
Form online at via a link at www dot weeksprogramsettlement dot com and submit it electronically no later than April
6, 2009 by clicking the “Submit” icon at the end of the online form, or (ii) complete the Claim Form manually
and mail it to the address set forth in Section IV below, postmarked no later than April 6, 2009.

See below for Class Action Explanation and Claim Form.

No wonder I was not getting exchanges like I used to those POS!

If you have any info to help the lawsuit go here.

Timeshare owners enrolled in the exchange program with RCI have grown increasingly frustrated by the unavailability of equitable timeshare trades. This frustration has culminated in two separate class action lawsuits being filed in New Jersey on March 14, 2006, both suits alleging RCI allows improper rentals and is committing fraud.

In the case filed in the United States District Court for New Jersey, the Complainant, Murillo, accuses RCI of marketing its program to RCI memebers as though they are the only ones to have access to the deposited timeshare weeks. The lawsuit summary introduction alleges, "As RCI tells it, each member can deposit his or her timeshare with RCI - thereby making it available for other members of the program - and can then withdraw a timeshare [that] another member has deposited. A key selling point is that only members of the program can access the deposited timeshares. This concept of a one-for-one exchange exclusively among RCI members is RCI's bedrock marketing principle. Unfortunately, RCI creates this image of its program through a uniform fraudulent, deceptive and unconscionable marketing scheme." On RCI's home website, it states "One of the most significant benefits of RCI subscribing membership is the ability to exchange into one of the many RCI affiliated resorts...Exchange Vacations are a great solution when you need to change the annual weeks you've been assigned at your resort. Simply deposit that week with RCI and choose a vacation at a time and place that works for you." The process sounds remarkably easy, but unfortunately for the RCI members, they're finding it anything but. Comments regarding the lawsuit that were sent in to "Timesharing Today" magazine vary from, "I have suspected precisely what is being alleged against RCI. I hope someone nails them good" to "Three cheers for the lawsuit," and "May I be in the complaint, residing in Maryland?"

This backlash is because members are realizing that using the program isn't nearly as simple as RCI claims it is. The lawsuit further alleges that "In practice, the RCI members are not the only persons with access to the timeshares. While RCI members deposit their timeshares into the system, RCI does not make all these timeshares available for exchange. Instead, RCI skims a large percentage of the timeshares from the system, including many prime timeshares, and rents these out to the general public for profit. RCI also uses these timeshares for promotional purposes and as fringe benefits for its employees, further depleting the number of timeshares available for member exchanges." Unlike any normal banking procedure where a customer can make a withdrawal equal to a deposit, people who bank their weeks hoping to exchange their time for time of equal value are unable to regardless of following normal and expected usage protocol.

The detrimental consequences to the majority of RCI members are plenty. As outlined in the lawsuit, "Through these and other business practices, RCI converts many of the prime timeshare deposits into cash, leaving much less desirable timeshares in the system for member exchanges. As a result of these fraudulent practices, the actual exeriences of many RCI members is that no matter how meticulously they follow RCI's rules and procedures, no matter how far in advance they begin looking for an exchange, they simply cannot find any comparable exchanges. RCI profits by these practices at the expense of its members, whose timeshares and RCI "benefits" are rendered virtually worthless."

Even more exasperating is the commonly held belief that RCI is involved in agreements with travel vendors further depleting available timeshare exchanges for paying RCI members. This allegation is made by both the Murillo Complaint, and also the Chase class action suit filed in New Jersey Superior Court. The claims are that "RCI secretly enters into agreements with third-party vendors who purchase high-demand timeshare weeks which had been deposited by members and resell them to the general public through various websites, while concealing any relationship with RCI," and that "RCI, despite its public pronouncements to the contrary, uses weeks deposited by members to provide inventory for its various affiliated rental programs." Because the allegations in these cases are similar, it's likely that they will be consolidated into one case, and both have already been assigned to the same Judge. RCI has only commented that their "policy is not to comment on matters in litigation." For more information visit www dot RCIClassAction dot com

 

[Disneypirate85]

I owned with RCI a few years ago, was VERY happy to sell it back to them for what I had in it, every penny, even got them to throw in two $50.00 gift certs from Outback.
Seriously folks don't need to tell most of DVC owners how lucky we are.

 

[jgus]

Oh, This makes me real happy DVC is using RCI now...

 

[LIFERBABE]

That's why most times it is cheaper to pay cash to stay at an RCI resort than it is to deposit for it.

I just payed less than $80 per night at 2 Williamsburg RCI resorts last week for the Inauguration. We stayed at Greensprings Vacation Resort in a 2 bedroom and at the Historic Powhatan Resort in a 2 bed. Both are on the DVC list for RCI. I found them on the Entertainment website thru travelnow. Low season but DVC wants over 200 points per week for low season.

I guess if my points were expiring and/or I was desperate to get rid of them, I would deposit but I'd rather go DCL or DL as long as its an option.

 

[tomandrobin]

Lets all not forget that "RCI" is an enhancement for DVC owners!

I really hope that the RCI agreement is only for 2 years (as I heard) and that DVC goes back to II.

 

[bft72]

I am a RCI weeks member and this is what I know about the settlement on the lawsuit:

According to the settlement, RCI suppose to change its ways of doing business and that its rentals will not impact the RCI weeks inventory for member's use. I am wondering how they are going to accomplish that if I know that RCI has business contracts with people to rent out its last minute inventory. Below is the company that has been listing and selling RCI last minute inventories online and on ebay for years now. I can't post links here, but you just search for justgottago on google, and the site justgottago.com will show up. He also operates as ebay seller justgottago.


The owner of this company has personally confirmed to me that he has a business contract with RCI to sell excess inventory. Look at what he sells, they are all great resorts that you can hardly find on RCI website. Shouldn't these last minute inventories be a RCI member benefit as well becasue one of the benefits that RCI advertise is "Last Call?" So I think this is something that should be put into consideration. These separate RCI business contracts to sells excess inventories should be stopped as well.
If you agree with me, and you are a RCI weeks member, then you need to write to the attorney to object to the settlement by April 6, 2009. Go to weeksprogramsettlement.com FAQ and you can learn about the settlement.

Everyone can do that as long as you are the RCI weeks member. So please do if you care about what get from RCI.

 

[Dean]

I am a RCI weeks member and this is what I know about the settlement on the lawsuit:

According to the settlement, RCI suppose to change its ways of doing business and that its rentals will not impact the RCI weeks inventory for member's use. I am wondering how they are going to accomplish that if I know that RCI has business contracts with people to rent out its last minute inventory. Below is the company that has been listing and selling RCI last minute inventories online and on ebay for years now. I can't post links here, but you just search for justgottago on google, and the site justgottago.com will show up. He also operates as ebay seller justgottago.


The owner of this company has personally confirmed to me that he has a business contract with RCI to sell excess inventory. Look at what he sells, they are all great resorts that you can hardly find on RCI website. Shouldn't these last minute inventories be a RCI member benefit as well becasue one of the benefits that RCI advertise is "Last Call?" So I think this is something that should be put into consideration. These separate RCI business contracts to sells excess inventories should be stopped as well.
If you agree with me, and you are a RCI weeks member, then you need to write to the attorney to object to the settlement by April 6, 2009. Go to weeksprogramsettlement.com FAQ and you can learn about the settlement.

Everyone can do that as long as you are the RCI weeks member. So please do if you care about what get from RCI.

RCI should sell inventory they know is or will be excess through any means they can. The question is whether they are selling truly excess inventory or siphoning off the top weeks for sale. Certainly if you stop all sales, including getaways and last calls, that would stop the problem but at a cost. Then your membership would be $200-250 a year instead of under a $100. DVC also sells excess inventory in much the same was as does RCI and now, through RCI.

 

[Brian Noble]

I've been following this for at least the last three years. As near as I can tell, it's a tempest in a teapot.

 

[Sammie]

Lets all not forget that "RCI" is an enhancement for DVC owners!

I really hope that the RCI agreement is only for 2 years (as I heard) and that DVC goes back to II.

Not unless they recieve complaints about the change, this was another change by management that was due to "member feedback".

Personally I think with II collection too many members were trading out, which DVC does not like even though they use it as a sales tool to push DVC. I think the change to RCI will result in fewer tradeouts.

 

[Dean]

While I have previously posted that I believed otherwise, the wording in Disney Files has me wondering if II forced this issue in some way. "The move allows us to continue offering". It simply doesn't make sense that DVC would change to what is clearly a second rate option compared to II (when you consider DVC quality resorts) without a specific reason.

 

[Brian Noble]

Dean, don't read too much into that wording. Remember: Disney is a star pupil of the George Orwell School of Public Relations.

 

[Dean]

Dean, don't read too much into that wording. Remember: Disney is a star pupil of the George Orwell School of Public Relations.

Oh I know but there had to be some reason for the change and the only thing that makes sense is that RCI was giving DVC some type of benefit, likely financial, that II wasn't willing to do. And it sure wasn't overall choices for the membership.

 

[carlbarry]

Meanwhile, I went to the RCI website, logged in, and looked for the link to get the paperwork for the class action suit, as stated in the packet I received in the mail. I can NOT find the link!

 

[Sammie]

Oh I know but there had to be some reason for the change and the only thing that makes sense is that RCI was giving DVC some type of benefit, likely financial, that II wasn't willing to do. And it sure wasn't overall choices for the membership.

I would be willing to bet, and I don't usually bet, that you are correct. I just do not feel this change was based on the wants of the members, but due to some type of benefit to DVC the management company.

Which this is the type of stuff that seems to keep cropping up lately which really distresses me.

I guarantee if any of us contact MS and ask why the change we will get the canned response of due to member feedback.

 

[Dean]

I would be willing to bet, and I don't usually bet, that you are correct. I just do not feel this change was based on the wants of the members, but due to some type of benefit to DVC the management company.

Which this is the type of stuff that seems to keep cropping up lately which really distresses me.

I guarantee if any of us contact MS and ask why the change we will get the canned response of due to member feedback.

There had to be a large and specific reason. Either II drew a line and said that's enough OR DVD wanted something II couldn't or wouldn't provide. The only items that makes sense to drive this issue are cost of corporate membership and/or the ability to rent weeks DVD needs to turn into cash. I know RCI has changed the way they interact and get payment from it's corporate members in the past 10 months. I did learn that Bluegreen used to pay a fee which was equivalent to about half the individual membership price but now they get "credits" and no more cash fee. I'm not sure I understand all the details but it seems to mean they get credit for how many members exchange, developer deposits, etc., essentially a barter system. I'm guessing there was a fee to use II and there is no actual fee to use RCI. I'm also guessing RCI is providing an outlet in some way for cash type inventory and this is one area where RCI is better than II.

You can bet DVC/DVD would not have done this just for exchange options even though RCI has more non 7 day options they have less resorts of the caliber that DVC members are likely to expect. Now if Marriott were to change also and become a points member, that would turn the argument a full 180 degrees. That's why I think DVC should have geared up the BVTC. Get Marriott, Hyatt, Hilton and possibly others like Bluegreen, Wyndham, Worldmark, Shell all in one points group and you've got a major player immediately. And DVC would have been in charge, right down their alley.

One of the mistakes people make is contacting MS about these issues. They are fine for gathering information for DVD/DVC including members complaints but certainly not the appropriate place to expect answers about such matters. They likely don't even know the answer and if they did, are likely under a gag order not to suggest it's one of the issues above. I'm sure they are instructed to give the answer told to them, certainly an appropriate corporate approach.

 

[Brian Noble]

I'm also guessing RCI is providing an outlet in some way for cash type inventory and this is one area where RCI is better than II.

RCI is worlds ahead of II in establishing rental markets and outlets. Not even comparable. Given the amount of cash inventory available to rent at RCI, I suspect this was no small part of the deal.

 

[Sammie]

One of the mistakes people make is contacting MS about these issues. They are fine for gathering information for DVD/DVC including members complaints but certainly not the appropriate place to expect answers about such matters. They likely don't even know the answer and if they did, are likely under a gag order not to suggest it's one of the issues above. I'm sure they are instructed to give the answer told to them, certainly an appropriate corporate approach

Totally agree, but that is a huge problem with DVC in my opinion, MS is your only avenue to express a complaint. I mean you can send it to Member Satisfaction Team which is just a branch of Member Services, but they will give you the same canned response.