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Exchange conversion rates with RCI devalue our points by over 66% - this can't be?

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  • Exchange conversion rates with RCI devalue our points by over 66% - this can't be?

    Please see the letter below that I have written to Bluegreen. If anyone can help it would be greatly appreciated. I cannot believe that they would screw us like this after owning for 15 years.

    'Dear Mr Kaminer
    I would like you to look in to the material breaches of our contract that we have with yourselves. We have owned weeks and points with Bluegreen since you took over the ownership of The Fountains and have had recently found the companies practices unacceptable and in breach of our contract.
    Until September 2008 we owned 2 deeded weeks at Oasis Lakes (now The Fountains). These were either used at the resort or deposited with RCI, who then gave us an additional two years to exchange with them.
    During our trip in 2008 we met with your sales staff who explained the ‘benefits’ of moving to your points system and buying more points to become a gold member:
    • We could book any week rather than a fixed week – OK
    • We could book earlier than most points members – OK
    • We could book affiliated resorts, all in the USA – NOT OK. We informed the sales person that as UK residents we could not afford to holiday in the USA every year, let alone a number of times a year. Your sales persons response was to show us a Bluegreen promotion board with the following on:
    ‘Guaranteed exchange power through an exchange company
    10,000 = 1 RED WEEK
    8,000 = 1 WHITE WEEK
    6,000 = 1 BLUE WEEK’

    They also encouraged us to buy 9,000 additional points for $11,110 so that instead of getting four weeks, every two years, through RCI we would get seven weeks.
    On the guarantee above we purchased the additional points so that we would increase our weeks through RCI from four to seven every two years.
    In 2010 we used 26,000 Bluegreen points to stay for 2 weeks at The Fountains and asked you to bank the remaining 44,000 points with RCI. This was duly done in February 2010, where our weeks were deposited on our RCI account and converted to 100,000 RCI points, which expired in February 2012.
    We exchanged three of these weeks for Silver Crown resorts in Spain as that is all that we could get for the points (using 69,000 RCI points). The remaining points were combined and the use extended until February 2014.
    All of the above was exactly as our contract with you stated.

    HOWEVER;
    In 2011 we again used 26,000 of our new allocation of Bluegreen points to stay for 2 weeks at The Fountains and in early 2012 asked you to bank our 44,000 points with RCI. I was informed by the ‘customer services’ person that I did not have to go through to the RCI website and, in fact, could access RCI exchanges directly through the Bluegreen website.
    On accessing this website I found that my 44,000 Bluegreen points were now ONLY WORTH 44,000 RCI POINTS. But how could that be? I checked the points value of the resort in Spain assuming that the exchange value should also have fallen by 66%. I had changed nothing and Bluegreen had merely given me access to RCI through their website.
    I contacted your ‘customer services’ people who told me that it was all RCI’s fault as they were refusing to take deeded weeks off Bluegreen and would only take points. She could not answer why there was such a discrepancy in the exchange conversion. She did confirm that the points were showing as deposited with an extended expiry date (as we had previously received through RCI when points were deposited).
    So I contacted RCI who told us that they were fed up with Bluegreen blaming them for this and it was nothing to do with them.
    I went on to your website in September to find that our 44,000 points had DISAPEARED! Upon contacting your ‘customer services’ staff again we were told that they expire at the end of August. So why did the previous lady tell me that these had BEEN DEPOSITED as I requested into RCI and that THEY EXPIRED AT A LATER DATE, as previously with RCI. Also the gentleman then told us that RCI DID NOT ACCEPT POINTS (what! the previous lady had told me they did not accept weeks, only points) and that Bluegreen could ‘do what they like as they can change your contract when they want and there is nothing you can do’! Is this true? Looking through my contract you cannot vary it without notifying us for agreement and agreed to exchange points for weeks and deposit them with RCI, which you duly did until 2012.

    As I sit here today, and I kid you not, this is what I see on the RCI website compared to your ‘RCI’ website:
    Silver Crown resort in Spain June 2013 17,000 RCI points
    SAME resort through your system 22,000 Bluegreen points.

    Putting this into context, the following has suddenly happened to our points:
    • If we had never converted to points we would have exchanged four weeks every two years with RCI.
    • In 2010 when you converted our points into weeks and deposited them we got two Bluegreen weeks and four RCI weeks which could be used for an additional two years.
    • By paying you AN ADDITIONAL $11,110 we now have 70,000 Bluegreen points which will only give us three weeks exchange every two years, which expire after the second year. How can this be right?
    I would appreciate it if you could look into this matter as it just doesn’t make sense that you would suddenly reduce the value of somebody’s points by 66% after honouring the contract in full.
    At this time we feel that there has been a material breach of our contract by yourselves, regardless of any issues you have with RCI as that is nothing to do with our contract with you, and that you should re-instate the agreed contract by depositing the 44,000 Bluegreen points, that were taken from us by misrepresentations from your staff, as four weeks into RCI as you did in 2010 and to continue to run our agreement in that way, else end the contract and buy the points back from us.
    I look forward to receiving your prompt response to resolve this matter, as you can imagine this is causing us much concern and anxiety.

  • #2
    The short answer is that this is the very reason I have always been allergic to points. It is too easy and tempting for them to move the goalposts.

    Since all of the promises happened in Florida, I would file complaints on this with 1) the Consumer Protection Division of the Florida Attorney General's office, and 2) the Florida Real Estate Commission

    Originally posted by carey View Post
    Please see the letter below that I have written to Bluegreen. If anyone can help it would be greatly appreciated. I cannot believe that they would screw us like this after owning for 15 years.

    'Dear Mr Kaminer
    I would like you to look in to the material breaches of our contract that we have with yourselves. We have owned weeks and points with Bluegreen since you took over the ownership of The Fountains and have had recently found the companies practices unacceptable and in breach of our contract.
    Until September 2008 we owned 2 deeded weeks at Oasis Lakes (now The Fountains). These were either used at the resort or deposited with RCI, who then gave us an additional two years to exchange with them.
    During our trip in 2008 we met with your sales staff who explained the ‘benefits’ of moving to your points system and buying more points to become a gold member:
    • We could book any week rather than a fixed week – OK
    • We could book earlier than most points members – OK
    • We could book affiliated resorts, all in the USA – NOT OK. We informed the sales person that as UK residents we could not afford to holiday in the USA every year, let alone a number of times a year. Your sales persons response was to show us a Bluegreen promotion board with the following on:
    ‘Guaranteed exchange power through an exchange company
    10,000 = 1 RED WEEK
    8,000 = 1 WHITE WEEK
    6,000 = 1 BLUE WEEK’

    They also encouraged us to buy 9,000 additional points for $11,110 so that instead of getting four weeks, every two years, through RCI we would get seven weeks.
    On the guarantee above we purchased the additional points so that we would increase our weeks through RCI from four to seven every two years.
    In 2010 we used 26,000 Bluegreen points to stay for 2 weeks at The Fountains and asked you to bank the remaining 44,000 points with RCI. This was duly done in February 2010, where our weeks were deposited on our RCI account and converted to 100,000 RCI points, which expired in February 2012.
    We exchanged three of these weeks for Silver Crown resorts in Spain as that is all that we could get for the points (using 69,000 RCI points). The remaining points were combined and the use extended until February 2014.
    All of the above was exactly as our contract with you stated.

    HOWEVER;
    In 2011 we again used 26,000 of our new allocation of Bluegreen points to stay for 2 weeks at The Fountains and in early 2012 asked you to bank our 44,000 points with RCI. I was informed by the ‘customer services’ person that I did not have to go through to the RCI website and, in fact, could access RCI exchanges directly through the Bluegreen website.
    On accessing this website I found that my 44,000 Bluegreen points were now ONLY WORTH 44,000 RCI POINTS. But how could that be? I checked the points value of the resort in Spain assuming that the exchange value should also have fallen by 66%. I had changed nothing and Bluegreen had merely given me access to RCI through their website.
    I contacted your ‘customer services’ people who told me that it was all RCI’s fault as they were refusing to take deeded weeks off Bluegreen and would only take points. She could not answer why there was such a discrepancy in the exchange conversion. She did confirm that the points were showing as deposited with an extended expiry date (as we had previously received through RCI when points were deposited).
    So I contacted RCI who told us that they were fed up with Bluegreen blaming them for this and it was nothing to do with them.
    I went on to your website in September to find that our 44,000 points had DISAPEARED! Upon contacting your ‘customer services’ staff again we were told that they expire at the end of August. So why did the previous lady tell me that these had BEEN DEPOSITED as I requested into RCI and that THEY EXPIRED AT A LATER DATE, as previously with RCI. Also the gentleman then told us that RCI DID NOT ACCEPT POINTS (what! the previous lady had told me they did not accept weeks, only points) and that Bluegreen could ‘do what they like as they can change your contract when they want and there is nothing you can do’! Is this true? Looking through my contract you cannot vary it without notifying us for agreement and agreed to exchange points for weeks and deposit them with RCI, which you duly did until 2012.

    As I sit here today, and I kid you not, this is what I see on the RCI website compared to your ‘RCI’ website:
    Silver Crown resort in Spain June 2013 17,000 RCI points
    SAME resort through your system 22,000 Bluegreen points.

    Putting this into context, the following has suddenly happened to our points:
    • If we had never converted to points we would have exchanged four weeks every two years with RCI.
    • In 2010 when you converted our points into weeks and deposited them we got two Bluegreen weeks and four RCI weeks which could be used for an additional two years.
    • By paying you AN ADDITIONAL $11,110 we now have 70,000 Bluegreen points which will only give us three weeks exchange every two years, which expire after the second year. How can this be right?
    I would appreciate it if you could look into this matter as it just doesn’t make sense that you would suddenly reduce the value of somebody’s points by 66% after honouring the contract in full.
    At this time we feel that there has been a material breach of our contract by yourselves, regardless of any issues you have with RCI as that is nothing to do with our contract with you, and that you should re-instate the agreed contract by depositing the 44,000 Bluegreen points, that were taken from us by misrepresentations from your staff, as four weeks into RCI as you did in 2010 and to continue to run our agreement in that way, else end the contract and buy the points back from us.
    I look forward to receiving your prompt response to resolve this matter, as you can imagine this is causing us much concern and anxiety.

    Comment


    • #3
      Originally posted by Carolinian View Post
      The short answer is that this is the very reason I have always been allergic to points. It is too easy and tempting for them to move the goalposts.

      Since all of the promises happened in Florida, I would file complaints on this with 1) the Consumer Protection Division of the Florida Attorney General's office, and 2) the Florida Real Estate Commission
      Many thanks we will do this. As we are not from the USA we didn't really know which avenue to take!

      Comment


      • #4
        I will add that although Pam Bondi and her staff are diligent in fighting timeshare resale scams, they are not proactive against the legitimate timeshare industry.
        RCI Member Since 24-Aug-1989/150-plus Exchanges***THE TIMESHARE GRIM REAPER~~~Exchanging/Searching/SW Florida/MO/AR/IA/Consumer Advocacy/Estate Planning/Sports/Boating/Fishing/Golf/Lake-living/Retirement****Sometimes ya just gotta be a dick

        Comment


        • #5
          The more complaints they get, the more likely they will be to look into those issues, too. You never know when your complaint will be the one that finally tips the scale to get them to act.

          During the decades that Blackwell Brogden headed the timeshare unit at the NC Real Estate Commission, he was extremely proactive, and would take on anybody. He even took on RCI over the way they first set up RCI Points (then called GPN) and forced RCI to back down and make significant changes in its program.

          Originally posted by JLB View Post
          I will add that although Pam Bondi and her staff are diligent in fighting timeshare resale scams, they are not proactive against the legitimate timeshare industry.

          Comment


          • #6
            The agreement between Bluegreen and RCI changed. We can no longer do weeks deposit to RCI, we instead have to use the RCI Portal which gives BG points values for RCI resorts.

            I do not think that banking points was ever possible, but I am certain that there is now no banking of weeks.

            RCI changes their point values all the time, that's what they do. Bluegreen, however, does not change their point values ever. What you see as a discrepancy in trade value is RCI's doing since BG has not changed.

            Comment


            • #7
              Originally posted by Carolinian View Post
              The more complaints they get, the more likely they will be to look into those issues, too. You never know when your complaint will be the one that finally tips the scale to get them to act.
              Exactly what I was thinking as I posted. Yes, I encourage people to file official complaints, so that the complaint side of the scale gets a bit heavier.

              But post was to caution not to expect it to tip anytime in the near future. After all, people have been lied to a scammed in Orlando for more than thirty years and today's lies are not much different than those. That is the beauty of business in America today, that vitually none can be held accountable for anything they do.



              I should also point out that whenever it is a matter of RCI and one of their affiliates, or an entity that has any sort of arrangement with RCI, neither will ever be to blame for anything.
              RCI Member Since 24-Aug-1989/150-plus Exchanges***THE TIMESHARE GRIM REAPER~~~Exchanging/Searching/SW Florida/MO/AR/IA/Consumer Advocacy/Estate Planning/Sports/Boating/Fishing/Golf/Lake-living/Retirement****Sometimes ya just gotta be a dick

              Comment


              • #8
                Carey, BG has gone the way of the other developers in requiring exchanging thru RCI to go thru their corporate portals at a fixed value regardless of how short the time period may be.
                Some weeks are a good deal and others are not.
                Obviously you have discovered the area of Spain where this is not a good deal.

                RCI points and BG points are two totally different currencies used to exchange in the same RCI system.
                Because you are going thru the corporate BG portal you are seeing these deals in the BG currency.
                If you also own an RCI points resort then you will possibly see the same week trading in RCI points currency which may be a better deal than using your BG points.

                That is a common issue with using these fixed grids in RCI to trade high priced points.

                You do have alternatives though.
                You may want to join one of the free to join trading companies like SFX-resorts, Platinum Interchange,
                Trading places international or DAElive and book a week and deposit it there so you can go back to your one for one trades on the years when you won't be visiting the US.
                You may have to buy a guest certificate in order to use these companies though.

                You also may want to consider renting some of your BG points on the off years so your points
                don't expire unused.

                Comment


                • #9
                  As for reporting to an AG, we here may think that timeshare complaints are signifcant, but maybe they aren't. Here's a state with a lot of timeshares, and a lot of scams, and complaints about them isn't even in the Top 10:

                  http://articles.ky3.com/2012-01-31/n...ges_31011141/2
                  RCI Member Since 24-Aug-1989/150-plus Exchanges***THE TIMESHARE GRIM REAPER~~~Exchanging/Searching/SW Florida/MO/AR/IA/Consumer Advocacy/Estate Planning/Sports/Boating/Fishing/Golf/Lake-living/Retirement****Sometimes ya just gotta be a dick

                  Comment


                  • #10
                    Carey,
                    you say you have 77000 points which I take will be EOY contract which equates to 38500 every yr. You travel to Oasis Lakes (the fountains ) off peak which uses 26000 leaving you 12500 every yr points , These points can be used to make reservations at any time ie white and blue seasons which use very small ammouts of points. These reservations (as long as you ask for a triangulated res -- allows you to exchange) can then be deposit with other exchange companies. If you use Dial and exchange then each reservation would give you 1 credit , these credits are then used to exchange your banked week for any other week (at any time of the year). By doing this you will have far more weeks to use in prime time than if you went through RCI.
                    By using white and blue reservations you may well get greater than 5 reservations per yr out of you left over points.
                    just because BG uses RCI it does not mean you have to.
                    look into it and you should find it is a win win
                    you can also do this with your free week since you are gold members , gives you a lot more flexability than fixed weeks

                    Phillip (ex weeks owner at oasis Lakes)

                    Comment


                    • #11
                      Simple, isn't it?

                      RCI Member Since 24-Aug-1989/150-plus Exchanges***THE TIMESHARE GRIM REAPER~~~Exchanging/Searching/SW Florida/MO/AR/IA/Consumer Advocacy/Estate Planning/Sports/Boating/Fishing/Golf/Lake-living/Retirement****Sometimes ya just gotta be a dick

                      Comment


                      • #12
                        Carey,

                        Just looked it up off peak reservation at Big cedar in a studio would use 2000 points per week
                        this could exchange into DAE to give you 1 credit.
                        That 1 credit would give you a 2bed/6 on mainland Spain in June 2013

                        Comment


                        • #13
                          Originally posted by smithiekid View Post
                          Carey,

                          Just looked it up off peak reservation at Big cedar in a studio would use 2000 points per week
                          this could exchange into DAE to give you 1 credit.
                          That 1 credit would give you a 2bed/6 on mainland Spain in June 2013
                          DAE (at least NA DAE) charges an upgrade fee when moving up in size.

                          Comment


                          • #14
                            Sally is right, however if you got a 2 bedroom Big Cedar it would still only be 6000 points. There would then be no upgrade fees for the unit in Spain just exchange fee, and you could still theoretically get 12 weeks of vacation a year.

                            Here is a perfect example of how BG can be used effectively with proper planning and strategically chosen weeks;

                            I booked a 1BDRM blue week at Atlantic Palace, for 3000 points and with exchange and small upgrade fee (for a holiday week) got a New Year’s Eve week 2013 at a Ski Resort. Total cost was ~ $400.

                            Comment


                            • #15
                              Thankyou for all your comments but fact of the matter is that BG DID honour our agreement 2 years ago and have now significantly reduced our trading power with RCI. BG set their own conversion rate of 1:1 now which was not the case in 2010 when we exchanged 44,000 BG points into weeks into RCI and they valued these weeks at 100,000 RCI points.
                              Choosing Spain is irrelevant and I notice that when RCI changed the points value of that week from 22,000 RCI points down to 17,000 RCI points BG did not do the same, therefore the value is entirely down to BG and NOT RCI.
                              My contract is not with RCI it is with BG and we , as non US residents, only purchased the points to deposit through RCI. They did this in 2010 and are now manipulating what they give RCI to their benefit and our cost.

                              Comment

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