Class action filed against RCI on rental issue

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

www.classcounsel.com/news/rci.html

This is all the info I have on this at this time.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

Good find. Now, we will find out once and for all whether or not RCI is renting spacebank weeks. This should result in a full accounting of their exchange practices.

[Sydney Contributor - Bronze Find all posts View Profile Close Sydney]

Wow. So it's finally happened.

Although hasn't RCI specifically changed its terms and conditions to allow it to rent out banked weeks?

Should be interesting.

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

It will be interesting to see what happens from here and how long it will take

[riverdees05 Platinum Contributor Find all posts View Profile Close riverdees05]

They will probably raise the exchange rates to pay for their legal fees.

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

Although hasn't RCI specifically changed its terms and conditions to allow it to rent out banked weeks?

Yes they have, so the class action pool should be drawn from exchangers who deposited prior to the change in the T & C and while I don't know the exact time limits involved I would suspect that may be a factor in bringing a case now.

Strange, that there was no prior report of them looking for clients. And also very strange that it took so long for a suit of this nature to be filed. Although maybe time was needed to prove initial suppositions.

I looked at the attorneys web site and initially thought only a 5 member firm taking on RCI, still they must think it worthy of the time. Probably will make them millionaires many times over if they win.

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

Has anyone heard anything on the status of the proposed class action suit against Fairfield? Last thing I heard, which was last year, was that the decision as to whether it should be certified as a class action was supposed to be made in January.

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

Same as I said Over Yonder. It would interesting to know what evidence prompted the lawsuit. There have been years and years of demanding solid evidence on these forums, so I wonder what they have that is so much better that stuff that has been offered up here and Over Yonder.
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There's no reason to believe that the bottom of anything will be found because a class action suit has been filed. Proprietary information is proprietary information. Suits get settled without uncovering facts.
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Has anyone here used the email link to the law firm and has anyone gotten a reply? Has anyone told them about TS4Ms and TUG?
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I also noticed Over Yonder that the usual Carolinian-bashers did not have anything to say, at least not right off.

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

Will Madge continue to Post on TUG?

I wonder if Madge will continue to post on TUG?

I think there are several things that RCI and Madge have written on TUG that could be a problem if they are not doing what they said.

Such as About Rentals on Ask RCI:

Walt

http://www.tug2.net/advice/FAQ-AskRCI.htm

VI. RCI Rentals


A. Generally-Comments from a Vice President, RCI


Many people have asked questions regarding our rental programs; where does the inventory come from? Is RCI renting weeks we have deposited for exchange?


Before I try and clarify what is a complex subject, let me say first of all that we take this issue VERY seriously. We are audited annually by Deloitte & Touche to ensure that we are managing inventory consistent with our stated policies. This is an area which is highly regulated in many states so we have to do it. But it's also true that we started this audit process long before we had to do it so we could confidently state that we have a fair exchange policy.

One of the reasons that many of RCI's new programs are so complex is because we go to elaborate lengths to make sure we're doing everything we can to ensure that we're giving our Members the best possible opportunity to get the exchange they want. We have a large Inventory Management department dedicated to delivering this. I know that this sounds like spin so far (it's not) so let me lay out the facts.

I can assure you that ALL of the weeks deposited by RCI Weeks members for exchange are available exclusively for exchange unless and until they fall within the "marketable inventory" category (at which point they are still available for exchange), which refers to weeks that members historically simply do not want or use.

All of these weeks in RCI's rental inventory are first made available to RCI members for rental, by virtue of your ability to make a pending request. If you have a pending request for a week, and you don't have trading power for it, or there's nothing in the inventory when you make your request, and then that week gets deposited at a later date, or goes unrequested by those members who do have the trading power, it is claimed from the system before it is placed in the rental pool. And, all of the weeks in RCI's rental inventory are offered to members at a significant discount off the price charged to the general public.

With respect to those weeks provided by developers, this represents a substantial member benefit, as members are being given access to highly desirable vacation weeks that may not have been available via exchange through lack of member deposits. These are weeks that many members may lack sufficient trading power to access via exchange; these are also quality weeks that members can enjoy in addition to those which they obtain through exchange, and at prices that represent another benefit of vacation ownership. For many members, who own weeks with very low trading power, this may be the primary benefit of their vacation ownership, and that's what we're in business for, to unlock the value of your timeshare. And it's been a big success. In the first six months following the launch of the RCI Holiday Network, more than three-fourths of the rental weeks provided to RCI by developers were rented by RCI members, members who were able to get the vacations they wanted


Unfortunately, there is presently no way for our members to know that the week they rent is one provided by developers specifically for rental, so it is understandable that in some situations some members have gone onto the RCI Holiday Network site or even the Bonus Weeks site, and seen a week they may have requested, and erroneously assumed these weeks were taken from RCI's one-for-one exchange inventory. That is never the case. Finally we also source inventory for rental programs from the weeks or timeshare interests owned by consumers at resorts managed by RCI Resort Management, which acts as a rental agent for owners looking to rent out their units, rather than participate in an exchange program

[reddiablosv Member Find all posts View Profile Close reddiablosv]

Who's the initial litigant? Is he/she a tug/TS4M poster? I hope the lawsuit is sufficiently broad to include other RCI issues such as RCI's refusal to refund Extra Vacation rental fees when rci cancels due to hurricane damage, etc. RCI's mislabeling its EV and Last Call rentals as exchanges in order to avoid taxation and rental regulations. I worry that if the lawsuit is too narrow in scope, it might not succeed. It is better to throw up a lot of mud in hopes that some of it might stick! You know it is not just the attorneys that stand to make a lot of money, but also the initial litigant! Long term the rest of us should benefit by this action. IMHO Ben

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

Odds are in favor of the defendent. They have the data that they can use to prove that whatever rules they put in place were fair and justified. It doesn't even matter if they were indeed fair and long as they had a process that they followed with discipline.

My bet is that the settlement will include a disclosure on their website for any future changes in terms and conditions. There will be a click through like when you license software. You can't click through unless and until you click that you've read, understand and agree to the terms and conditions for depositing.

And, this case goes both ways. I'll bet that no matter what the outcome that those against RCI will continue to be against them even if they are completely exonerated.

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

Who's the initial litigant? Is he/she a tug/TS4M poster? I hope the lawsuit is sufficiently broad to include other RCI issues such as RCI's refusal to refund Extra Vacation rental fees when rci cancels due to hurricane damage, etc. RCI's mislabeling its EV and Last Call rentals as exchanges in order to avoid taxation and rental regulations. I worry that if the lawsuit is too narrow in scope, it might not succeed. It is better to throw up a lot of mud in hopes that some of it might stick! You know it is not just the attorneys that stand to make a lot of money, but also the initial litigant! Long term the rest of us should benefit by this action. IMHO Ben

The blurb on the firm's website encourages anyone with RCI Weeks problems, or who wants more info on the suit to contact them...

[bigfrank Administrator Find all posts View Profile Close bigfrank]

Hmmm, I wonder how many Grand Mayan units were in the rental pool that were canceled at the exchangers expense.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

It is better to throw up a lot of mud in hopes that some of it might stick!

Do you seriously believe this? If you have a strong case that you can prove. There is no need to dilute it with extraneous allegations and unrelated facts.

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

HOC's Post on TUG

While many of us go back and forth, some of us go back and forth more than others.

I would like to introduce HOC's TUG post into the record here so as to continue the discussion later with some of the known facts at this this time.

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I have just looked at the complaint in the case (which is filed in state court in New Jersey). Before you all get too excited about the case, there really are only two claims being made.

The first is a consumer fraud claim under New Jersey law, made on the grounds that, while RCI has language in the contract allowing it to do whatever it wants with the weeks deposited, it did not tell consumers that it was going to take the weeks and rent out the best ones, leaving only the leftovers for exchangers.

The second is a breach of contract claim, but essentially claims that the RCI Member Agreement is Unconscionable (in that RCI has superior bargaining power and the terms of the member agreement are grossly unfair to members).

The lawsuit seeks an injunction, damages, disgorgement of profits and attorneys' fees and costs.

Those are the claims in a nutshell.
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Those are my principles. And, if you don't like them, well, I have others.