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Legislative Solution to Exchange company rentals problem?
The class action lawsuits over the RCI rentals may help encourage state legislators to look at some helpful legislation for timesharers to address the problem.
Most if not all states have long had legislation on the books requiring certain disclosures of any exchange program with which any seller of timeshare was affiliated, often including HOA's of sold out resorts that resell foreclosure/deedback inventory. Most of these statutes are drawn from the Florida statute. North Carolina's version is at NCGS 93A-48.
While the statute requires disclosure of specific number ranges on a number of exchange issues, all it has to say about other uses is the requirement to disclose:
''(16) The disposition made by the exchange company of time shares deposited with the exchange program by owners eligible to participate in the exchange program and not used by the exchange company in effecting exchanges.''
Given the brave new world of exchange company rentals, that did not exist when this statute was drafted, it needs to be brought up to date by requiring detailed disclosures about exchange company rentals, including numbers and broken down in detailed categories.
As to North Carolina, our legislature only has a budget session this year with no real opportunity to put forward new bills. Perhaps someone has some contacts with legislators in other states.
If not, there is another regular session of the NC General Assembly in January 2007.
Most if not all states have long had legislation on the books requiring certain disclosures of any exchange program with which any seller of timeshare was affiliated, often including HOA's of sold out resorts that resell foreclosure/deedback inventory. Most of these statutes are drawn from the Florida statute. North Carolina's version is at NCGS 93A-48.
While the statute requires disclosure of specific number ranges on a number of exchange issues, all it has to say about other uses is the requirement to disclose:
''(16) The disposition made by the exchange company of time shares deposited with the exchange program by owners eligible to participate in the exchange program and not used by the exchange company in effecting exchanges.''
Given the brave new world of exchange company rentals, that did not exist when this statute was drafted, it needs to be brought up to date by requiring detailed disclosures about exchange company rentals, including numbers and broken down in detailed categories.
As to North Carolina, our legislature only has a budget session this year with no real opportunity to put forward new bills. Perhaps someone has some contacts with legislators in other states.
If not, there is another regular session of the NC General Assembly in January 2007.
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