resort attempting to limit exchanges to RCI

[wandering gnome Senior Member Find all posts View Profile Close wandering gnome]

I just got off the phone with the the reservation clerk at my resort, with whom I was trying to reserve a week to deposit with an independent exchange company, which I exchanged with two years ago. The reservation clerk stated that they are only exchanging with the company that they have contracts with-- RCI.

Currently, I have left my name and phone number with the reservation's manager to get back with me concerning this issue.

Do you have any "words of wisdom" to share with the reservation's manager when I speak with her.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

That isn't so

If it is your week then they cannot limit to who / which exchange company you use. If they refuse to give it directly then just get your personal use reservation number & then assign that to the exchnage group you wish to use. Except for II, who like RCI requires that your wohole resort affiliate with them, most independents work with your personal reservation as that is yours to do with as you please.


Keep at it & don't let the management that works FOR YOU push you around when it comes to using your deeded time.

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

I would make the reservation first, without telling the resort you wish to deposit the week with an independent. The exchange company with whom you are dealing should have a deposit form for you to sign, and the exchange company should be able to help get it done.

I know that SFX has a good deal of experience with this and has had good success getting deposits from reluctant resorts. It is illegal in many cases for the resort to deprive you of your right to use the week as you wish.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

I would also email or write all the members of your HOA BOD and complain about this.

[Mark @SFX Industry Representative Find all posts View Profile Close Mark @SFX]

I just got off the phone with the the reservation clerk at my resort, with whom I was trying to reserve a week to deposit with an independent exchange company, which I exchanged with two years ago. The reservation clerk stated that they are only exchanging with the company that they have contracts with-- RCI.

Currently, I have left my name and phone number with the reservation's manager to get back with me concerning this issue.

Do you have any "words of wisdom" to share with the reservation's manager when I speak with her.

Wandering gnome - this is usually as a result of new resort staff who really do not have a good understanding of what rights Owners have.

This is usually resolved by discussing it with a supervisor. You do have the legal right to request any exchange company you want.

If the supervisor still attempts to block you, please post and I will respond with chapter and verse with the antitrust violations they would be committing.

Thanks,
Mark @sfx
Member Communications

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

There have been lawsuits over this going back at least 20 years . . . exclusive contracts (breach of) v. restraint of trade.

I'm not sure if there have been recent ones, but I can see a possibility of a resort having an exclusive contract with an exchange company.

[Mark @SFX Industry Representative Find all posts View Profile Close Mark @SFX]

There have been lawsuits over this going back at least 20 years . . . exclusive contracts (breach of) v. restraint of trade.

I'm not sure if there have been recent ones, but I can see a possibility of a resort having an exclusive contract with an exchange company.

Yes... but even between an exchange company and a resort, it sill raises questions about possible unlawful monopoly, restraint of trade, unfair competitave practices etc. Especially when the company has the "predominant market share".

Mark @sfx
Member Communications

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Yes... but even between an exchange company and a resort, it sill raises questions about possible unlawful monopoly, restraint of trade, unfair competitave practices etc. Especially when the company has the "predominant market share".

Mark @sfx
Member Communications

Where's Ms. Dehaan and Mr. Seigel to lead this discussion?

Timeshare owners elect board members to conduct business on their behalf, and empower that board to enter into contracts on their behalf. I can see how a Board could legally bind all owners (those who elected and empowered the Board) to an exclusive agreement.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Where's Ms. Dehaan and Mr. Seigel to lead this discussion?

Timeshare owners elect board members to conduct business on their behalf, and empower that board to enter into contracts on their behalf. I can see how a Board could legally bind all owners (those who elected and empowered the Board) to an exclusive agreement.

Both State and federal law prohibit monopolistic business practices. RCI, and probably II, contracts have boilerplate monopolisitic language but it is never enforced because they don't want to be on the receiving end of government anti-monopoly enforcement action. Having been an HOA board member and president, I can assure you that HOA boards are not empowered to violate State or federal anti-monopoly laws. Indeed, if they attempted to do so, they could make the HOA a defendant, and thus be violating their duties to their members.

[wandering gnome Senior Member Find all posts View Profile Close wandering gnome]

Initially, when I spoke to the reservation clerk, I stated that I believe that I can exchange with other exchange companies. The reservations clerk said I could I could only exchange with RCI, so I asked to speak with her manager.

When the Manager called back she said she would have to get corporate approval and they were doing it on a case by case basis. Since it was 4:00, she would get back with me in the morning. It took two days for her to get back with me. She gave me a reservation # so I could exchange with the independent company.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Using some of the reasoning mentioned in this thread, an HOA could not contract with one painter, or one plumber, or one maintenance company, or one landscaper . . . .

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

If you OWN the week you can do with it what you like. This has nothing to do with supplier contracts.

The only time I have heard of a resort successfully defending a monopolistic exchange company ruling has been between RCI and II.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

If you OWN the week you can do with it what you like. This has nothing to do with supplier contracts.

The only time I have heard of a resort successfully defending a monopolistic exchange company ruling has been between RCI and II.

I am not sure how the battle between Mr. Seigel and Ms. Dehaan almost 20 years ago actually played out, other than they apent beaucoup bucks over this issue, and they both thought they were right, Mr. Seigel thinki9ng he had the right to take all his resort to II, and Ms. Dehaan thinking he did not.

Even at that, both sides felt they had the right to be or to have an exclusive exchange agreement applicable to all their owners.

Is that not still the feeling of Mr. S/CFI/Westgate?

After that battle, new owners at CFI (Westgate) resorts were/are exclusively II, and only the existing owners who had been with RCI had the option of dual affiliation or affiliation with RCI.

Is it not similar to DVC deciding either II or RCI? Or HGVC, Hilton, etc. selecting just one to represent all their owners?

When you google it, you see that exclusive agreements are common:

http://www.google.com/#hl=en&rlz=1R2...b5f508e49085f6

http://www.thefreelibrary.com/Resort......-a073538590

http://www.thetimeshareauthority.com...ith-group-rci/

http://www.wyndhamworldwide.com/medi...ase.cfm?id=546



& when there are agreements like that, I bet 99 & 44/100% of owners go along with it.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Amazingly, the FTC has addressed monopolistic concerns when it comes to exchange companies:

CUC INTERNATIONAL INC. a corporation, and HFS INCORPORATED a

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

It is not just the US. DAE and Interchange went after RCI and possibly II on monopoly issues in Australia and backed them down. There was also an investigation in the UK by a govenment agency on monopolisitic practices of resorts in restricting use of independent exchange companies that put an end to those practices.