RCI Class Action Lawsuit

These actions by RCI definitely do harm owners who are trying to rent a timeshare that they own. Last summer I answered an enquiry from someone who wanted to rent the 2 weeks I had advertised on another timeshare rental site. By the time I got back to her (2 or 3 days, I was out of town w/out email access) she had already rented these weeks from RCI. She was renting almost a year in advance - and had already paid the full amount, as required. So she couldn't get out, even though I wanted less money, and only requested a partial down payment.

I have banked weeks with RCI, and am quite upset to discover that they may be using those weeks to compete against me for rentals. I need the money - and I think that this is very unfair - both to those who deposit their week(s) in good faith, and those owners who attempt to rent weeks that they own.

As Mike noted, you certainly should buy where you want to vacation (if you are buying a fixed week) and only use exchanges for "the icing on the cake". No brainer. Why pay an exchange fee all the time? Of course, the other option is to be in a large resort group that lets you use your ownership or points at any of their resorts at no additional charge. We find that the best of both worlds! MD

It seems that the trade-out for the expense of defending RCI's class action lawsuit for renting deposited weeks is they have reprogrammed their trade power downward for many resorts/weeks. Many people are complaining about this, however as I mentioned when this lawsuit was first implemented, the winners will be the lawyers involved as RCI barely received a slap on the wrist ..... now many RCI members are paying for that lawsuit with loss of trade power and RCI is still performing rentals so the lawsuit did nothing to halt that.

I expect to see a rise in membership fees, exchange fees and guest certificate fees any day now to pay for RCI's defense and the token compensation to RCI members via that lawsuit ..... however token the compensation, we're talking in the millions of dollars total to RCI's millions of members.

Many people here and on Tug are educated concerning this lawsuit, but we at Redweek and Tug are merely a drop of sand on the beach compared to the vast RCI memberships that have no idea about this lawsuit, so in the end just as I predicted, the lawyers were the true winners.

One way to avoid the problem is to withhold depositing any timeshare property for exchange with RCI. We have done so and now are free from it's predatory practices. If enough people did this could we force them into bankrupcy?

jayjay wrote:

....compared to the vast RCI memberships that have no idea about this lawsuit, so in the end just as I predicted, the lawyers were the true winners.

1. The case is still actively in progress and is far from over; to speak of it in the "past tense" is, quite simply stated, wrong and factually incorrect. Also, plaintiff lawyers have NOT yet been awarded (or received) a single DIME so, in point of fact, there are NO "true winners" (...or losers) yet --- the inaccurate self proclaimed "prediction fulfillment" above notwithstanding.

2. About a week ago, the Judge in this case (Murillo vs. RCI) ordered RCI to come back with a proposed way to (finally) conduct a PROPER notification to *ALL* RCI members --- which RCI *NEVER* did (which is exactly why so few people ever knew of it, despite the case having been initiated over 3 years ago, in March, 2006). Tiny print, offhand mention in obscure portions of RCI's "Endless Vacations" magazine was NOT "proper notification" --- and Federal Judge Peter G. Sheridan has now very clearly and very overtly said so, in open court. He also openly questioned why RCI proposes to implement its' minor (and in my opinion, insulting and insignificant) procedural changes regarding RCI handling of member deposits for a *TOTAL* time period of *ONLY* 24 months (i.e., NOT permanently) upon prospective adoption of the current PROPOSED settlement agreement.

3. I sincerely hope that the current PROPOSED settlement will simply be rejected outright by Judge Sheridan, who (ar least based upon the substantive issues he raised during the recent fairness hearing in Federal court in NJ) seems to very clearly understand that the proposed "settlement", in its' current form, is really just an an absolute farce and a complete joke (...although certainly not at all the least bit funny).

4. Stand by. Goliath (RCI) MAY ultimately be brought right to its' knees by little David (...objecting, well informed RCI members).

Meanwhile, as astutely observed by "stephen497", smart RCI members should give RCI *NOTHING* in the way of high quality deposits, until and unless RCI cleans up its' act and stops renting out all of the best deposits for RCI's own profit, making only the much less desirable, low demand weeks (and excess developer inventory) available to RCI members for actual "exchanges".

I believe the above to be an entirely accurate portrayal of the current status of this lawsuit. I have tried (perhaps not entirely successfully) to contain my own personal (and nearly unlimited) contempt for RCI in reporting the case status above.

RCI is a bunch of crooks. For example, over the last few years I have requested and received my exchange for a Disney property using Interval International usually within a month or two. I purposely choose the least popular week (48) to do this. This year having been forced to RCI, I made my request the first week of 2009, again for week 48. I have been told on a number of occassions that my request will be difficult to fill and once was told that it will not be filled. What makes this worse is that when I search RCI’s website, the week I requested is available for purchase and had been for months. They are criminals, plain and simple.

I DON'T DOUBT THAT THIS IS TRUE.I AM A WEEKS/POINTS OWNER. I ALSO HAVE TROUBLE GETTING PLACES A YEAR IN ADVANCE AND I'M TIRED OF ALL THEIR FEES AND THEY ARE GOING HIGHER.THATS WHY I'M TRYING TO GET RID OF ALL MINE.BUT SAD TO SAY,YOU CAN'T GIVE THE POINTS AWAY.FED UP.

Thanks for the update. It is very helpful. As for RCI givng notice, well, this is the first that I have heard of this lawsuit and I am a long time (and aggrieved) RCI member. Guess I need better glasses when reading the RCI magazine as I have never seen anything in there! usually I receive a postcard in the mail when i am a potential member in a class action.

As for the nasty comments about only lawyers making money in class action lawsuits: well, clearly that is not true. Millions are won for plaintiffs through these suits, the amounts seem small because there are so many plaintiffs. The lawyers involves put in thousands of hours and spend their own money up front to bring these cases; they should be paid well. Who will do it if they do not? Twenty years ago I ended up with a free flight from a major airline as a result of a legal action that was brought on behalf of a class.

However, the point of a lawsuit isn't just to make plaintiffs money, the point is also to stop defendants from engaging in harmful behavior so that there are not MORE people hurt in the future. JUSTICE!!

jeannemcg1 wrote:

However, the point of a lawsuit isn't just to make plaintiffs money, the point is also to stop defendants from engaging in harmful behavior so that there are not MORE people hurt in the future. JUSTICE!!

mike1536 wrote:

jeannemcg1 wrote:

However, the point of a lawsuit isn't just to make plaintiffs money, the point is also to stop defendants from engaging in harmful behavior so that there are not MORE people hurt in the future. JUSTICE!!

Have you read the results? The way the suit is going RCI gets one lash with a wet noodle, then will be allowed to have business as usual.

I was shocked yesterday when I stumbled on a website that had a link to buy certificates using rci inventory. I went to the site and a scheduling calendar came up to allow access to RCI weeks up to July 2010. I checked the inventory with RCI's website and they had the same week that I was interested in in San Antonio in October. The link is from the sky auction site. If you have not heard about it then check it out.

http://www.resortcertsview.com/main.taf?p=0

I could not believe it so I called RCI and talked to a supervisor. He said that they have been doing this since 2003 and that we were notified in the RCI directory. I told him that I have not received a directory in 15 years.

When I joined RCI in 1991, the assumption was that I was banking my inventory to exchange with someone else. I did not join for RCI to take my week and give it to the world at large.

To me, this is an abuse of their fiduciary responsibility to properly handle funds that the RCI members have entrusted them with. The lawsuit is ONLY effective if they can make RCI stop this illegal practice. A $20.00 pitance is nothing compared to the 11 timeshare weeks that I have invested.

Oh when I talked to the supervisor he said. "We do this because if we did not rent out these weeks the inventory would be unused and that is wasteful in these economic times." Wasteful like a fox.... the money gets put in RCI's pocket... not the members.

SHAME ON RCI!!!! A new reputable company needs to be established to put these crooks out of business.

It clearly states on page 500 under 'Depositing Vacation Ownership and Requesting an Exchange' in RCI's Terms and Conditions :

c: "By depositing Vacation Ownership with RCI, you relinquish all rights to use that Vacation Ownership an agree that such deposited Vacation Ownership may be used by RCI to conduct exchanges, inspection visits, promotions, RENTALS and for other purposes at RCI's DISCRETION".

That rule has always been in place. In other words, when you deposit your week (s) into RCI then RCI owns that week to do with what they wish. It's all in black and white in the back of the RCI wishbook, but evidently there are those that don't take the time to read the fine print .... they just jump on the bash RCI bandwagon without even reading RCI's their terms and conditions.

As Perry M states, all this lawsuit will do is make the lawyers rich and the cost of this lawsuit will be passed onto all RCI members in the form of higher fees.

With that rule plainly stated, I don't see how this lawsuit came to fruition in the first place ... since the suit has no validity whatsoever.

suem279 wrote:

I was shocked yesterday when I stumbled on a website that had a link to buy certificates using rci inventory. I went to the site and a scheduling calendar came up to allow access to RCI weeks up to July 2010. I checked the inventory with RCI's website and they had the same week that I was interested in in San Antonio in October. The link is from the sky auction site. If you have not heard about it then check it out.

http://www.resortcertsview.com/main.taf?p=0

I could not believe it so I called RCI and talked to a supervisor. He said that they have been doing this since 2003 and that we were notified in the RCI directory. I told him that I have not received a directory in 15 years.

When I joined RCI in 1991, the assumption was that I was banking my inventory to exchange with someone else. I did not join for RCI to take my week and give it to the world at large.

To me, this is an abuse of their fiduciary responsibility to properly handle funds that the RCI members have entrusted them with. The lawsuit is ONLY effective if they can make RCI stop this illegal practice. A $20.00 pitance is nothing compared to the 11 timeshare weeks that I have invested.

Oh when I talked to the supervisor he said. "We do this because if we did not rent out these weeks the inventory would be unused and that is wasteful in these economic times." Wasteful like a fox.... the money gets put in RCI's pocket... not the members.

SHAME ON RCI!!!! A new reputable company needs to be established to put these crooks out of business.

mike1536 wrote:

However, when you signed up with RCI the agreement stipulated that RCI can do whatever it wants with weeks that are deposited.

Exactly (see my post above) .... that's why (in my opinion) the plaintiffs don't have a leg to stand on as it's clearly stated in RCI's terms and conditions.

From reading several of the segments, it almost appears to me that JayJay is either with RCI or certainly has a very positive position. But whatever, I have been concerned about the timeshare trades for several years and have had significant concerns over the last three years, because I was unable to get a trade, even a year out. Their actions seem to have eliminated the availability of trading units for the owners and favor the people who just want to rent units. For years, I was able to utilize the system with great satisfaction, but recent years seem to have evolved into something less desirable. Yes, the catalog does say that they can use your week as they seem fit, after you have deposited it. However, it doesn't mention that you have very limited trading opportunities, because they have chosen to rent the weeks rather than bank them for us to trade into. Therefore, they have changed the game rules and have created a very limited opportunity for the owners to be able to trade their weeks for another location. I have also seen the size of the "weeks" catalog vs. the "points" catalog and there is now a significant difference. The points system seems to have considerable favor. When we purchased our weeks, there wasn't such a thing as points. However, the trend and sales pitches are now focused on the "points" system.

williamb547 wrote:

does anyone out there know the name of the president of rci? i have been stonewalled by rci at everyturn, one person telling me that they are forbidden to give out his name. one rep said he is in nyc and another says he is in phoenix. any help?

Here is a link to the president of RCI (balotti) --- they call him a sterling executive --- I think that sterling has tarnished considerably.

http://www.hotelworldnetwork.com/move/group-rci-appoints-balotti-president-and-ceo-2055

suem279 wrote:

williamb547 wrote:

does anyone out there know the name of the president of rci? i have been stonewalled by rci at everyturn, one person telling me that they are forbidden to give out his name. one rep said he is in nyc and another says he is in phoenix. any help?

Here is a link to the president of RCI (balotti) --- they call him a sterling executive --- I think that sterling has tarnished considerably.

http://www.hotelworldnetwork.com/move/group-rci-appoints-balotti-president-and-ceo-2055

Here is Mr Balloti's address:

Ballotti Geoffrey A C/O WYNDHAM WORLDWIDE CORPORATION 22 SYLVAN WAY PARSIPPANY, NJ 07054

Here are all the people getting rich from our timeshare units.

http://www.marketwatch.com/investing/stock/WYN/insideractions

suem279 wrote:

williamb547 wrote:

does anyone out there know the name of the president of rci? i have been stonewalled by rci at everyturn, one person telling me that they are forbidden to give out his name. one rep said he is in nyc and another says he is in phoenix. any help?

His name is jayjay

Are you implying jayjay is the President? Too funny (sorry jayjay)

rogert41 wrote:

From reading several of the segments, it almost appears to me that JayJay is either with RCI or certainly has a very positive position. But whatever, I have been concerned about the timeshare trades for several years and have had significant concerns over the last three years, because I was unable to get a trade, even a year out. Their actions seem to have eliminated the availability of trading units for the owners and favor the people who just want to rent units. For years, I was able to utilize the system with great satisfaction, but recent years seem to have evolved into something less desirable. Yes, the catalog does say that they can use your week as they seem fit, after you have deposited it. However, it doesn't mention that you have very limited trading opportunities, because they have chosen to rent the weeks rather than bank them for us to trade into. Therefore, they have changed the game rules and have created a very limited opportunity for the owners to be able to trade their weeks for another location. I have also seen the size of the "weeks" catalog vs. the "points" catalog and there is now a significant difference. The points system seems to have considerable favor. When we purchased our weeks, there wasn't such a thing as points. However, the trend and sales pitches are now focused on the "points" system.

No, I'm not in the employment of RCI or any other timeshare company. I merely stated their terms and conditions concerning rentals ..... if you can't take that then I recommend that you leave RCI as a member .... you are not forced to join ANY exchange company .... I'm not defending RCI just merely pointing out their terms concerning rentals.

I stand by my earlier statement that the plaintiffs don't have a leg to stand on, but the attorneys will make a fortune.

mike1536 wrote:

suem279 wrote:

williamb547 wrote:

does anyone out there know the name of the president of rci? i have been stonewalled by rci at everyturn, one person telling me that they are forbidden to give out his name. one rep said he is in nyc and another says he is in phoenix. any help?

His name is jayjay

Are you implying jayjay is the President? Too funny (sorry jayjay)

LOLOLOL, if I was the president of RCI do you really think I would have time to post on internet forums? I think the man has more important issues to address.

Also, what is posted on internet forums will have absolutely nothing to do with the outcome of the lawsuit.