# Murillo v. RCI lawsuit update [Merged]



## famy27 (Nov 28, 2008)

It appears that the parties have reached a settlement.  The court has yet to approve the settlement, but here are the preliminary terms  (a little light Thanksgiving reading!)  I can't fit all of the text in, but here is the first half.

If this is approved, RCI will disclose trading power and will allow you to search prior to depositing a week. 

II. TERMS AND CONDITIONS OF THE SETTLEMENT BENEFITS
RCI shall make available to all Settlement Class Members the changes and
benefits in this Section II (the "Class Benefits"), such benefits to be in addition to any vouchers, discounts, refunds, or other benefits of any kind that may be available to RCI Weeks Exchange Program Members as of the Execution Date other than as set forth in this Settlement Agreement.

A. Member Disclosures. RCI will disclose the following information to any Member (as to Corporate Participants, such information shall be provided only to the extent the ThirdParty Entity with which the Corporate Participant is affiliated reflects Trading Power in values for communication to the Third-Party Entity's owners), provided that a Member properly submits to RCI the information regarding the Member's Vacation Time that is otherwise required by RCI to make a Deposit (e.g., week number, resort J.D., bedroom size, and kitchen size):

1. Disclosure of Trading Power.
a. RCI shall disclose, to any Member who owns Vacation Time, the Trading Power for that Vacation Time prior to the Member's actual Deposit of the Vacation Time, subject to the following: (i) the Member requests the disclosure more than fourteen (14) days and less than two (2) years prior to the starting date of the Vacation Time that is the subject
of the Member's proposed Deposit; and (ii) RCI will provide the Member with the Trading Power of the Member's Vacation Time that RCI has assigned based on the assumption that the Deposit will take place on the same day that the Trading Power is determined by RCI, and RCI will concurrently and prominently disclose that, if the Deposit is not made that day, the Trading Power subsequently may be affected by the factors enumerated in Section IX.A below, and thus is subject to change until the time of actual Deposit. In conjunction with a Member's actual Deposit of Vacation Time in accordance with the applicable Terms and Conditions, RCI will disclose the assigned Trading Power ofthe Deposit to the Member.

b. RCI will provide information to any Member regarding (a)
Member Exchanges over the prior two years by region and subregion (if applicable), calendar month, average Trading Power of confirmed Exchanges, and average historical supply, and (b) currently available Inventory for which the Member's Vacation Time has sufficient Trading Power to effect an Exchange, including the current Trading Power of the available Inventory based on the assigned Trading Power of the Member's Vacation Time and in accordance with the applicable Terms and Conditions. For example, provided that a Member properly submits to RCI the information that otherwise would be required to deposit the Member's Vacation Time (e.g., week number, resort LD., bedroom size, and kitchen size), RCI will disclose to that Member currently available Inventory for which the Member's Vacation Time has sufficient Trading Power to effect an Exchange. RCI's disclosure of available Inventory is not and shall not be construed as a representation or guaranty that such Inventory will be available for Exchange at the time the Member deposits the Vacation Time. A list of the regions and subregions currently used by RCI in conducting searches to effect an Exchange, which is subject to change by RCI in the normal course of business, is annexed to this Settlement Agreement as Attachment 4.

c. The information identified in subsections II.A.l.a and ILA.l.b
shall be provided only to Members who own the Vacation Time for which information is sought, are in compliance with the applicable Terms and Conditions, and have a valid log-in identification, password, and/or personal identification to use RCI's web-based or automated systems. Such information shall be made readily available on a website regularly maintained by RCI.

d. Nothing in this Section II or in this Settlement Agreement shall require RCI to disclose the methodology for calculating Trading Power, including but not limited to any formulae, algorithms, or calculations.

e. The information identified in subsections II.A.l.a and II.A.l.b shall be made available beginning on or before August 31, 2010 and continuing for a period of two (2) years from the date on which such information is first made available by RCI in accordance with this Section II.A.! or August 31, 2012, whichever is earlier.

2. Balancing of RCI Deposits and Rented Inventory. RCI represents that, on a calendar year basis and by Trading Power Segment, the aggregate quantity of Vacation Time that is deposited by Members and is rented by RCI shall be less than the aggregate quantity of
Inventory and Alternative Inventory that RCI or others deposit or contribute, or that RCI
otherwise permits to be contributed for Exchange, except that this representation excludes (a) the quantity of Vacation Time that Members deposit to acquire Alternative Inventory (as measured by the aggregate Trading Power of such Vacation Time), and (b) Vacation Time that is not the subject of a Confirmation ninety (90) days prior to the start date of that Vacation Time.

3. Disclosure of Weeks Program Activity. RCI agrees that, for the calendar year ending December 31, 2008 and for at least two calendar years thereafter, RCI shall make information available to all Members regarding activity in the RCI Weeks Exchange Program, by Trading Power Segment, during the prior calendar year. Such disclosure shall be in addition to any statutory disclosures RCI mayor may not provide. RCI may determine the timing, frequency, and form of such disclosures, provided that the information disclosed by RCI shall include the following: (I) the total number of units of Inventory deposited more than ninety (90) days prior to the starting date of the deposited Vacation Time, showing the number of such units deposited by each of Members, RCI, or others; (2) the number of Exchanges in the RCI Weeks Exchange Program completed more than ninety (90) days prior to the starting date of the deposited Vacation Time, including the total number of Exchanges involving Members' Vacation Time exchanged for other Members' Vacation Time, the total number of Exchanges involving Members' Vacation Time exchanged for Inventory or Alternative Inventory deposited by RCI, and the total number of Exchanges involving Members' Vacation Time exchanged for
Inventory or Alternative Inventory deposited by others; (3) the total number of units of Inventory that were not the subject of an Exchange; and (4) the total number of units of Inventory that were deposited by Members and rented by RCI more than ninety (90) days in advance of the starting date of the deposited Vacation Time.

B. Disclosures to New and Enrolling Members. On or before August 31, 2009, RCI
shall, to the extent legally permitted, require Affiliated Resorts to provide new and enrolling Members with information and disclosures regarding the RCI Weeks Exchange Program. This information and these disclosures shall, at a minimum: (I) explain the manner in which Trading Power shall be disclosed to individual Members; (2) identify all of the factors that impact Trading Power and the Exchange of Vacation Time; and (3) provide the most recent compilation of data made available to Members pursuant to Section II.A.(2) above. RCI will monitor the compliance of a sample of Affiliated Resorts in providing the information identified above to new and enrolling Members and, as to Members who provide RCI with a valid e-mail address, RCI shall conduct a post-emollment survey regarding the application and disclosure process, and RCI shall promptly address any responses in the post-emollment survey that RCI identifies as a
deficiency in Affiliated Resorts' disclosures with the intention of correcting the  deficiency.

C. Priority For Weeks Program Exchange Fulfillment. Commencing on or before
August 31, 2010 and continuing for a period of two (2) years from the date on which the benefit provided in this Section ILC is first made available by RCI or August 31, 2012, whichever is earlier, each Deposit of Vacation Time for the purpose of an Exchange right, made more than one year in advance of the starting date of such Vacation Time, shall be available exclusively for Exchange by Members and eligible members of the RCI Points exchange program (subject to balancing as required by Section II.A.(2), above) for a period of thirty-one (31) days from the date of Deposit, including the initial Deposit day, and shall not be available for any other purpose, including, without limitation, Rental. In addition, upon each such Deposit of Vacation Time, as well as with respect to Deposits made less than one year in advance of the starting date of the deposited Vacation Time, RCI will make available that Vacation Time to satisfY an active and pending Exchange Request, based on the Trading Power criteria set forth in Section IX.A below. If no such Exchange Request exists upon the Deposit date, RCI will make the deposited Vacation Time available for both Exchange and Rental, should RCI wish to offer the Vacation Time for Rental. Notwithstanding the foregoing in this Section ILC:

1. RCI may exchange Vacation Time with other exchange programs for the
purpose of balancing exchange systems as described in subsection ILA.(2), above, or for the purpose of enhancing Member satisfaction;

2. RCI may, at any time, rent or otherwise dispose of any Vacation Time that
(a) is acquired by RCI and is in excess of the amount of Vacation Time that RCI deposits or has deposited, if any, for the purpose of balancing Inventory available to Members as set forth in Section ILA.2 of this Settlement Agreement or (b) is not the subject of a Confirmation ninety (90) days prior to the starting date of that Vacation Time;

3. Although not included within the definition of a Member, RCI may, in its sole discretion, permit an Affiliated Resort to make a Deposit and perform an Exchange and provide the Deposit or resulting Confirmation to a Member subject to the terms of this Section
ILC and the Terms and Conditions; and

4. To the extent there is a conflict between the provisions of this Section ILC and the terms of any agreement between RCI and Affiliated Resorts that may limit or otherwise relate to the availability of a Deposit, including but not limited to limitations on the ability of a Member to Exchange for Vacation Time that is located within a certain radius of the Member's
Deposit, the terms of RCI's agreement with the Affiliated Resort shall control.

D. Expiring Deposit Recognition. Settlement Class Members, excluding Former
Members, who are identified on the list annexed to this Settlement Agreement as Attachment 5, may elect to receive a $30 credit applied toward the Member's next Exchange. Not later than April 6, 2009, an eligible Settlement Class Member seeking the benefit available in this Section ILD must complete and submit directly to RCI a Claim Form to be made available via a link posted on the RCLcom website or, upon request, by U.S. regular mail, in accordance with the terms and procedures set forth in such Claim Form. Eligible Settlement Class Members were identified on Attachment 5 based on the following criteria: (1) the starting date associated with said Member's Vacation Time is between January 1,2000 and August 31, 2008; (2) the Member paid RCI to extend, for a minimum of six months, the ability to apply the Deposit toward an Exchange; (3) the Member initiated and maintained a Properly Submitted Exchange Request for a period of at least thirty (30) consecutive days; (4) the ability to apply the Deposit toward an Exchange expired; and (5) the Member did not confirm an Exchange against that Deposit. The credit available under this Section IlD shall be redeemable from August 31, 2009 through December 31, 2009.


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## famy27 (Nov 28, 2008)

*Murillo v. RCI lawsuit update, part 2*

Here are the rest of the terms of the settlement agreement:

E. Additional Benefits for Current Members. In addition to the benefits set forth
above, a Settlement Class Member who is a Member in good standing may select, at his or her sole option, one of the following five additional benefits, subject to the terms, conditions, and limitations set forth in this Settlement Agreement, by completing and submitting directly to RCI a Claim Form to be made available via a link posted on the RCLcom website in accordance with the terms and procedures set forth in such Claim Form.

1. Request First. If a Settlement Class Member selects this benefit, RCI shall
provide the Settlement Class Member with the opportunity to search Inventory and make an
Exchange Request prior to depositing Vacation Time, and such opportunity shall expire upon the earlier of (a) the date on which the Settlement Class Member effectuates an Exchange and (b) two (2) years after the Effective Date. A previous, unexpired Deposit may not be used in
connection with Request First. In order for a Settlement Class Member to use this benefit and to properly identify Inventory for which the Settlement Class Member's Vacation Time has
sufficient Trading Power to effect an Exchange, the Settlement Class Member must provide the starting and ending dates, resort LD., bedroom size, and kitchen size of the Settlement Class Member's Vacation Time to be deposited, and the starting date of the Settlement Class 
Member's Vacation Time must be at least nine months into the future. No Exchange Fee shall be required by RCI in connection with the use of Request First unless and until an Exchange
Confirmation is made. If the Request First search identifies a desired Exchange, the settlement Class Member must Deposit the Vacation Time at the time of the Exchange to confirm the Exchange.

2. Membership Renewal Credit. If a Settlement Class Member selects this benefit, RCI shall provide the Settlement Class Member with one of the following: (a) Members (excluding Corporate Participants) whose RCI Weeks Exchange Program membership expires within two years of the Effective Date shall be given a two month extension of their RCI Weeks
Exchange Program membership; and (b) Members (excluding Corporate Participants) whose
RCI Weeks Exchange Program membership expires more than two years after the Effective Date can elect either (i) a two month extension of their RCI Weeks Exchange Program membership, (ii) a $20 credit toward a RCI Weeks Exchange Program membership renewal, which shall be added to the Member's current subscription term, or (iii) a $20 credit toward the Member's next Exchange, which credit shall be valid through the date that is two years past the Effective Date, provided that the starting and ending dates of the Vacation Time that is the subject of the next Exchange to which the credit will apply may take place at any time.

3. Prorated Refund of Subscription Fees. If a Settlement Class Member selects this benefit, the Settlement Class Member's membership in the RCI Weeks Exchange Program shall immediately terminate, and RCI shall provide the Settlement Class Member with a prorated refund of his/her Subscription Fee and a full refund of fees paid by the Settlement Class Member for pending Exchange Requests.

4. Free Rental Night. If a Settlement Class Member selects this benefit, RCI shall provide the Settlement Class Member with one free night stay at any RCI Rental offered as single night stays, subject to availability, to be used toward the same room of any paid Rental of at least one night. The Rental must be reserved within one year of the Effective Date.

5. Cruise Certificate. If a Settlement Class Member selects this benefit, RCI shall provide the Settlement Class Member with a $100 discount certificate per cabin to be applied toward the purchase of any Cruise offered by RCI at the time this benefit is selected with the option of receiving additional $100 discount certificates (one per cabin) toward the purchase of up to three additional cabins for the same Cruise by the same Settlement Class Member. The Settlement Class Member will be required to book any and all such Cruises within one year from the date this option is selected. The Cruises themselves may occur at any time subject to availability.

F. Requirements for Selecting Additional Benefits for Current Members. Not later than April 6, 2009, individual Settlement Class Members seeking one of the benefits described above in Section II.E must complete and submit directly to RCI a Claim Form to be made available via a link posted on the RCI.com website, or, upon request, by U.S. regular mail, in accordance with the terms and procedures set forth in such Claim Form, and such benefit shall be redeemable commencing no later than August 31, 2009.

G. Benefits for Former Members. Former Members who are Settlement Class
Members may elect to receive either (1) a $15 payment from RCI or (2) a $15 credit toward a RCI Weeks Exchange Program membership. Not later than April 6, 2009, a Former Member seeking one of the benefits available in this Section II.G must complete and submit directly to RCI a Claim Form to be made available via a link posted on the RCI.com website or, upon request, by U.S. regular mail, in accordance with the terms and procedures set forth in such Claim Form, and such benefit shall be provided to Former Members by December 31, 2009.

H. Class Benefits Not Transferable or Assignable. No Settlement Class Member
shall transfer or assign any Class Benefit to any other person or entity, including any Third-Party Entity, and Class Benefits shall not be redeemable for cash value by any Settlement Class Member or any other person or entity, subject to the terms, conditions, and limitations of this Settlement Agreement.

I. Time Limitation. Except as otherwise provided herein, and without altering any shorter or longer period that is specified herein, RCI shall not be required to offer or provide any of the Class Benefits identified in this Settlement Agreement for more than two years from the Effective Date.

J. Waiver/Modification of Requirements. Notwithstanding anything in this
Settlement Agreement to the contrary, nothing in this Settlement Agreement shall be construed to restrict, limit or otherwise impede RCI's rights to (1) accept or reject any enrollment application, and (2) waive or modify, in RCI's sole discretion, the application of any requirement applicable to the RCI Weeks Exchange Program that otherwise could be imposed upon a Member, including transaction fees, provided that such waiver or modification does not impair or diminish the Class Benefits.

K. Extension of Deadlines for Benefits. If RCI cannot perform an obligation required of it by this Settlement Agreement by the date specified herein, RCI will notify Class Counsel promptly (i.e., within days or weeks as may reasonably be appropriate under the circumstances) of the reason for the delay and the date by which RCI expects to be able to complete the required task.


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## davidvel (Nov 28, 2008)

*Typical class action garbage results.*

Commencing on or before August 31, 2010... each Deposit of Vacation Time for the purpose of an Exchange right, made more than one year in advance of the starting date of such Vacation Time, shall be available exclusively for Exchange by Members and eligible members of the RCI Points exchange program . . . for a period of thirty-one (31) days from the date of Deposit, including the initial Deposit day, and shall not be available for any other purpose, including, without limitation, Rental

BUT IF DEPOSITED LESS THAN 1 YEAR BEFORE RESERVED WEEK, OR IF STILL ON BOOKS AFTER A MONTH, THEY WILL PULL FROM EXCHANGE POOL AND RENT OUT. Sounds no different from what they were sued for doing. 

Missed the part about how much the attorneys who agreed to this great settlement on behalf of the plaintiffs will get.


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## Jbart74 (Nov 28, 2008)

davidvel said:


> Commencing on or before August 31, 2010... each Deposit of Vacation Time for the purpose of an Exchange right, made more than one year in advance of the starting date of such Vacation Time, shall be available exclusively for Exchange by Members and eligible members of the RCI Points exchange program . . . for a period of thirty-one (31) days from the date of Deposit, including the initial Deposit day, and shall not be available for any other purpose, including, without limitation, Rental
> 
> BUT IF DEPOSITED LESS THAN 1 YEAR BEFORE RESERVED WEEK, OR IF STILL ON BOOKS AFTER A MONTH, THEY WILL PULL FROM EXCHANGE POOL AND RENT OUT. Sounds no different from what they were sued for doing.
> 
> Missed the part about how much the attorneys who agreed to this great settlement on behalf of the plaintiffs will get.



Agreed.  WOW!  What a crock!


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## Kozman (Nov 28, 2008)

Sounds like business as usual to me!  Any real change buried in all that legalize?


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## theo (Nov 28, 2008)

*Settlement agreement + No real injunctive relief = ZERO*



Kozman said:


> Sounds like business as usual to me!  Any real change buried in all that legalize?



No injunctive relief mandating actual meaningful change to RCI's current practices indicates that it *will* remain mostly "business as usual" for RCI. Nothing within the agreement appears to significantly constrain RCI from continuing to rent out the best deposits, except for the (30 days only requirement) offering as exchanges weeks deposited a year in advance. Who does that, anyhow? Admittedly, I personally wouldn't know. 

RCI apparently just has to acquire enough inventory to establish a (*quantity, not quality*) "balance" between rental inventory and exchange inventory. Big deal. 1000 "dog" weeks in the exchange inventory matched by 1000 prime weeks in the rental inventory is hardly "balance", except in a strictly numerical sense. Absent a "quality" factor, it's simply meaningless.

The "select one of the following, just one time" _benefits_ :hysterical:  all approach worthless, in my opinion --- and all are completely painless to RCI. At least this "trinket grab bag" portion of the settlement agreement both reflects a sense of humor and saves RCI the expense of putting worthless "value" coupons inside of cereal boxes instead... 

In a post-Thanksgiving expression of gratitude, I'm genuinely thankful that I have nothing whatsoever to do with RCI exchanges in the first place.


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## crazyhorse (Nov 28, 2008)

*1. Request First.*

On first read, I don`t understand much of the RCI class action settlement.

The recompense provided by RCI for members who successfully claim would include the above as one option (request first).
 i.e.  look at the exchange availability, _*then *_deposit (a bit like Dial an Exchange system). Doesn`t seem as though RCI are introducing this as a normal process though!

They mention kitchen size and bedroom size-I haven`t come across this before-I thought the _*number*_ of bedrooms  and the resort location were more important.

Another issue, I guess the settlement is just for USA members of RCI, but should it be applied internationally (for what little it is worth)?

USA members exchange to non-USA resorts, and visa versa, so the settlement rules should be universal.

The 31 day rule doesn`t seem to give members much of a chance of getting the exchange they want, because after then, RCI would be at liberty to offer it up for rent. As I read it, this applies to deposits made more than 1 year before the start date. If the deposit is made within one year of the start date, the 31 day rule does *not* apply and it could go straight for rental. That is unless there is an exchange request in, and then the first one in gets it(!).
But how are we to know that any of this is happening??


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## davidvel (Nov 28, 2008)

crazyhorse said:


> The 31 day rule doesn`t seem to give members much of a chance of getting the exchange they want, because after then, RCI would be at liberty to offer it up for rent. As I read it, this applies to deposits made more than 1 year before the start date. If the deposit is made within one year of the start date, the 31 day rule does *not* apply and it could go straight for rental.


This appears to be a big failure in the "settlement." How often are weeks deposited more than 1 year before the reservation start date?

Read:"If weeks are deposited 364 days before the week's start date, and it is a good week, RCI will rent it out and make big$$, and leave the crap for the exchangers.


crazyhorse said:


> But how are we to know that any of this is happening??


You don't. But even if they follow the agreement, RCI is free to steal the good weeks to rent out in most cases. It is hard to fathom that 1.)they openly admit this in a public settlement; and 2.) that anyone would join such a system.


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## timeos2 (Nov 28, 2008)

*Exactly what was predicted. Only the diehard classactioners surprised*

No surprise (except to those who actually thought that the innuendo and "leaked information" that supposedly would convict RCI of devious actions to move inventory against the stated rules to rentals vs unfair trade ups for practically worthless deposits would stand up) that this has ZERO impact on the operations of RCI with the exception that it appears owners will now (finally) be privy to the actual trade value assigned (as they already had in Points) on the weeks side. That makes it easy. If your dog week is a low trade value don't expect RCI to upgrade it for free to a much higher value week. The way it should have always been and has been in the past 6-10 years.  No grand scheme to defraud, no stealth actions to move the best times to rentals - just verification that most weeks aren't worth anything close to what the owner thinks it is. The top 10% is just that - the other 90 isn't an equal trade. If that is now clear to owners then at least something good came out of this fiasco besides the always expected big payoff to the shysters who pitched it. 

Can we now move on to making best use of RCI rather than throwing stones at the rules we all agree to if we deposit with them? You know the score so play the game or drop out. No more whining allowed! They never owed free upgrades to any resort/owner and the fact that the system allowed it for a time didn't make it a right.  Move on.


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## Leturno (Nov 29, 2008)

> e. The information identified in subsections II.A.l.a and II.A.l.b shall be made available beginning on or before August 31, 2010 and continuing for a period of two (2) years from the date on which such information is first made available by RCI in accordance with this Section II.A.! or August 31, 2012, whichever is earlier.



It's after 2am and I'm reading this with tired eyes but does this say that after two years ('August 31, 2012, whichever is earlier') all this openess dries up and it all goes back to what RCI's business as usual?

I also wonder how RCI is going to pull this off. They have been promising Wyndham and Raintree owners the ability to search online with their deposits (soon) and it hasn't happened for years now. This is going to be a busy 8 months of programming to meet the deadline of Aug 31, 2010. I bet you they go back to court asking for an extension.

Scott


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## blueparrot (Nov 29, 2008)

These lawyers just double-crossed their clients to collect a big fee for themselves.  Shameful.  I wonder if there is any ethical complaints that can be filed.


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## Timeshare Von (Nov 29, 2008)

Seems to me that this has "legalized" what they've been doing all along . . . of course, with new disclosure or admitting of their business model.


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## mshatty (Nov 29, 2008)

blueparrot said:


> These lawyers just double-crossed their clients to collect a big fee for themselves.  Shameful.  I wonder if there is any ethical complaints that can be filed.



Why do you say this?  The clients have to approve all settlements.  The lawyers can't settle a case without their approval.


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## SBK (Nov 29, 2008)

*Have I overdosed on something???*

So, as I understand the deal, my two best choices are a one time chance to search first, then take whatever shows up *OR* the equivalent of a $20.00 rebate on the RCI annual fee.

:deadhorse: 

I love it!!!!  Irony is good for the adrenalin.

Some of my best friends and loving family members are lawyers.  BUT --- come on folks.  This does not benefit ANYBODY and we are stuck with it because some judge certified a class action suit without the members of the class having any notice or say.  (PLEASE -- do not tell me that they put out some newspaper ads.)

I am sure this is public information -- would someone please post the amount the lawyers will split?  We NEED to know.  :hysterical:


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## famy27 (Nov 30, 2008)

SBK said:


> So, as I understand the deal, my two best choices are a one time chance to search first, then take whatever shows up *OR* the equivalent of a $20.00 rebate on the RCI annual fee.
> 
> :deadhorse:
> 
> ...



Actually, the class hasn't been certified yet.  The terms of the class notice are part of the settlement agreement.  Any potential class member could opt out to pursue their own case or could file an objection to the terms of the settlement.  

I just checked the terms of the settlement.  The fee issue hasn't been decided yet.  The plaintiffs' attorneys plan to seek fees and reimbursement of expenses, and RCI plans to oppose that request.  The lead plaintiffs will each receive a payment of $375 and a $375credit to be used against "any product offered by RCI to its members and/or the general public."


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## Laurie (Nov 30, 2008)

davidvel said:


> Commencing on or before August 31, 2010... each Deposit of Vacation Time for the purpose of an Exchange right, made more than one year in advance of the starting date of such Vacation Time, shall be available exclusively for Exchange by Members and eligible members of the RCI Points exchange program . . . for a period of thirty-one (31) days from the date of Deposit, including the initial Deposit day, and shall not be available for any other purpose, including, without limitation, Rental
> 
> BUT IF DEPOSITED LESS THAN 1 YEAR BEFORE RESERVED WEEK, OR IF STILL ON BOOKS AFTER A MONTH, THEY WILL PULL FROM EXCHANGE POOL AND RENT OUT. Sounds no different from what they were sued for doing.



Except that before the lawsuit, inventory that was deposited more than a year in advance, AND had open unfilled ongoing searches, went directly into the rental pool, and was NOT available for exchange. 

I know this to be true, 'cause I saw lots of great stuff listed in Extra Vacations (for high-$ rental rates), that fit this description. And whenever I called RCI to ask for any of those as exchanges, I was always told no, those weeks were from "separate inventory" - but these were older sold-out resorts, no way were they developer deposits - nor were they off-season weeks which RCI could rationalize would go untaken. They would have been snapped up as exchanges, but would bring RCI more revenue in rental $. I believe they hid behind the "balancing" explanation for weeks vs. points, but there was no way all that great stuff could have been siphoned off for that.

At the moment, most decent Extra Vacations I see are also available for exchange - and fewer fabulous weeks are showing up with a price tag.


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## Carolinian (Nov 30, 2008)

famy27 said:


> Actually, the class hasn't been certified yet.  The terms of the class notice are part of the settlement agreement.  Any potential class member could opt out to pursue their own case or could file an objection to the terms of the settlement.
> 
> I just checked the terms of the settlement.  The fee issue hasn't been decided yet.  The plaintiffs' attorneys plan to seek fees and reimbursement of expenses, and RCI plans to oppose that request.  The lead plaintiffs will each receive a payment of $375 and a $375credit to be used against "any product offered by RCI to its members and/or the general public."



If these turkeys can't hack it, they need to file a dismissal without prejudice so that someone who can hack will be able to take it up.

We need the email addresses of the judge, the plaintiffs lawyers, and the lead plaintiffs, so we can bombard this with email opposing this sellout masquerading as a settlement.

One of the lead plaintiffs used to post quite often about his disgust with RCI's practices, here and on other timeshare boards.  I was not surprised when I learned he was one of the lead plaintiffs, but I am extremely surprised that he would let his fellow timesharers down in this manner.  He emailed me after the suit was filed that his lawyers did not want him active in posting, so he has not been around for a while.


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## x3 skier (Nov 30, 2008)

crazyhorse said:


> On first read, I don`t understand much of the RCI class action settlement.



There should be a typical opening set of words on any class action settlement that would read as follows:

"This settlement means we will might stop doing whatever it was we were accused of doing and will send all class members some token piece of something that will entitle the class member to get something they absolutely do not want or cannot use.

We will also pay the lead law firm that got this thing certified a humongous amount of money which is the reason the class members do not get anything of any value above what they could get by taking ten aluminum cans to the recycling center which may or may not be zero.

Further more, the settlement will be worded so we can probably keep on doing whatever we were doing before the lead law firm started this gravy train for themselves.":ignore: 

Having been selected as a member of a class for several things in the past, the above describes the results in every case. There is one still out there to get back the foreign currency fees charged by Visa, MC, etc of which I have have heard nil for over a year so maybe that one will result in something other than a "free" certificate for a useless thingy, but I doubt it.:annoyed: 

Cheers


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## BocaBum99 (Nov 30, 2008)

x3 skier said:


> There should be a typical opening set of words on any class action settlement that would read as follows:
> 
> "This settlement means we will might stop doing whatever it was we were accused of doing and will send all class members some token piece of something that will entitle the class member to get something they absolutely do not want or cannot use.
> 
> ...



I just got a $50 check in the mail as the settlement in some class action lawsuit that I was a class member of.  I don't even remember what it was because it didn't seem to warrant any of my thought or time.  $50 is enough to go out for Dinner.  Not bad for doing nothing and since I don't feel I was wronged in any way.


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## famy27 (Nov 30, 2008)

I have a copy of the class notice.  It is too large to post.  Again, this is the proposed class notice.  It has not been approved.  Apparently, plaintiffs' counsel intends to seek attorneys' fees and reimbursement of out-of-pocket expenses not to exceed $4,000,000."

There are instructions about objecting and opting out of the class as well.  According to the settlement agreement, the notice would be posted on rci.com not later than December 21, 2008.  RCI will also publish the class notice in the _Endless Vacation _magazine which will be mailed on or befure February 27, 2009.  Finally, RCI will cause the Notice to be published on one weekday of RCI's selection in_ USA Today _between February 23, 2009 and March 3, 2009.


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## T_R_Oglodyte (Nov 30, 2008)

Did anybody seriously think it would end in any manner substantially different than this?

If so, I can think of about 20 timeshare sales operations that would loooooove to schedule a session with you.


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## Carolinian (Dec 1, 2008)

There were two class actions filed the same day.  One in federal court (Murrillo) which had three big time class action firms involved, and one in state court in New Jersey (Chase).  The former smelled like the usual class action scam that would not accomplish anything except a big fee for the attorneys.  The latter had some Tuggers involved behind the scenes, a lawyer who was a timesharer himself and cared about the issues involved, and a Tugger as lead plaintiff who had expressed strong opinions on these boards about RCI's malpractices.  When these two cases got consolidated in federal court, the concern was that the Murrillo crowd would have the upper hand, and apparently they did.  An earlier sign of that was the dropping of some points-related issues that were in Chase from the consolidated complaint.

What we need is the email address of the Clerk of Court of the federal court involved, and the name of the judge.  We can then email the judge c/o the Clerk and ask 1) that this sham of a settlement not be accepted, and/or 2) that these shysters who have accomplished absolutely nothing of value for the class we are a member of should not receive any attorney fees at all.

We should also email our displeasure to the attorneys involved and to the lead plaintiffs.


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## crazyhorse (Dec 1, 2008)

famy27 said:


> I have a copy of the class notice.  It is too large to post.  Again, this is the proposed class notice.  It has not been approved.  Apparently, plaintiffs' counsel intends to seek attorneys' fees and reimbursement of out-of-pocket expenses not to exceed $4,000,000."
> 
> There are instructions about objecting and opting out of the class as well.  According to the settlement agreement, the notice would be posted on rci.com not later than December 21, 2008.  RCI will also publish the class notice in the _Endless Vacation _magazine which will be mailed on or befure February 27, 2009.  Finally, RCI will cause the Notice to be published on one weekday of RCI's selection in_ USA Today _between February 23, 2009 and March 3, 2009.



 
On a positive(?) note, 

1.RCI has, in effect been fined (yes we know where the money will come from). 

2.I suspect that most RCI members are currently unaware of the class action, what RCI has been accused of, and the outcome of the case. 
The publicity that will now be created should enable all RCI members to make better-informed decisions as whether to renew their membership or not.


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## x3 skier (Dec 1, 2008)

crazyhorse said:


> On a positive(?) note,
> 
> The publicity that will now be created should enable all RCI members to make better-informed decisions as whether to renew their membership or not.



I sure did not need this info to decide not to renew. 

Worked for me in the past but I have no need for RCI any more.

Cheers


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## AwayWeGo (Dec 1, 2008)

*R. C. I., Shmarr Sea Eye.*




x3 skier said:


> I have no need for RCI any more.


We have no great affection for RCI either. 

But without RCI, what good is our timeshare in a far-off distant land overseas -- ditto our dinky points timeshare in the USA heartland ? 

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


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## Carolinian (Dec 1, 2008)

AwayWeGo said:


> We have no great affection for RCI either.
> 
> But without RCI, what good is our timeshare in a far-off distant land overseas -- ditto our dinky points timeshare in the USA heartland ?
> 
> -- Alan Cole, McLean (Fairfax County), Virginia, USA.​



HINT: independent exchange companies.


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## AwayWeGo (Dec 1, 2008)

*Great Idea.*




Carolinian said:


> HINT: independent exchange companies.


Which ones take points ? 

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


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## lgreenspan (Dec 1, 2008)

*If you are unhappy with the preposed RCI settlement*

This paragragh is from the preposed settlement. I think all Tuggers should take the time to respond

Dave

View attachment Doc2.doc



_[To keep all the info. together, I moved your post to the on-going thread on this topic.-DeniseM Moderator]_


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## DaveNV (Dec 2, 2008)

I came a bit late to the party, but have to say, I'm disappointed.  I know nothing of class action lawsuits, but it sure seems like a lot of fuss up over what amounts to basically no changes to things.  I also find it ironic that if this settlement goes through as written, the fun starts in August of 2010.  My RCI membership expires in June of 2010.  And I have no intention of renewing, so I won't be able to play anyway.  Oh well.   

My t/s ownership has been manipulated (by me, of all people) to the point where I plan to use all of what I own, with the exception of one Hawaii week every other year.  That one will be offered to family, friends, rental market, and whatever else I can think of.  Only after all else fails, it might go to an independent exchange company.  No more RCI for me, thanks.

I hope those who are vested in this lawsuit get a fair deal out the other end.  But as you all have so wisely pointed out, that's not likely.  Bummer.

Dave


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## Carolinian (Dec 2, 2008)

AwayWeGo said:


> Which ones take points ?
> 
> -- Alan Cole, McLean (Fairfax County), Virginia, USA.​



You have to convert your points to an actual week.  With RCI Points, I suspect that would have to be taking use of your underlying week and giving that to the independent.


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## Carolinian (Dec 2, 2008)

Yes, we need to flood them with responses, and in it tell them that the lawyers do not deserve to be paid because they have totally sold out the interests of the class.




lgreenspan said:


> This paragragh is from the preposed settlement. I think all Tuggers should take the time to respond
> 
> Dave
> 
> ...


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## AwayWeGo (Dec 2, 2008)

*I Think I Already Know The Answer.*




Carolinian said:


> You have to convert your points to an actual week.  With RCI Points, I suspect that would have to be taking use of your underlying week and giving that to the independent.


What do the independent exchange companies offer in place of _Instant Exchange_ style last minute reservations ? 

(You know, getting change back when _Raiding The Weeks Inventory_ for last minute dogs & cats at a fraction of the underlying timeshare week's points value.) 

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


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## theo (Dec 2, 2008)

*Unspecified deadline for objection...*



Carolinian said:


> Yes, we need to flood them with responses, and in it tell them that the lawyers do not deserve to be paid because they have totally sold out the interests of the class.



I note with some confusion a blank line following the words "postmarked no later than...". Surely there is some very specific time frame within which objections must be sent?  

Although I don't exchange with RCI, I do have a current RCI membership, which I believe makes me a "member of the class" (feel free to correct me if I am mistaken on this particular point). This proposed settlement agreement is just such absolutely worthless, useless crap that I *will* take the time to prepare and submit a detailed objection, despite an absence of any real or personal stake in the final outcome.


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## lgreenspan (Dec 2, 2008)

*Preliminary approval hearing is scheduled for December 15, 2008*

RCI Settlement   

    David C. Berman, a Professional Corporation was designated Plaintiffs’ Liaison Counsel in a nationwide class action that was filed in New Jersey during 2006 on behalf of RCI Weeks Program members. Through its Weeks Program, RCI offers its members the option of depositing their vacation week in a spacebank to exchange it for a comparable week from the spacebank. Plaintiffs allege that RCI actually rents out the most desirable and highly demanded vacation weeks from the spacebank, thus depleting the most desirable options available to Weeks Program members who seek exchanges.  

A settlement has been reached in this lawsuit. The Court will hold a preliminarily approval hearing regarding the settlement. If the settlement is preliminarily approved and you meet the definition of a class member, your rights may be affected. Currently, the preliminary approval hearing is scheduled for December 15, 2008.


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## Carolinian (Dec 3, 2008)

lgreenspan said:


> RCI Settlement
> 
> David C. Berman, a Professional Corporation was designated Plaintiffs’ Liaison Counsel in a nationwide class action that was filed in New Jersey during 2006 on behalf of RCI Weeks Program members. Through its Weeks Program, RCI offers its members the option of depositing their vacation week in a spacebank to exchange it for a comparable week from the spacebank. Plaintiffs allege that RCI actually rents out the most desirable and highly demanded vacation weeks from the spacebank, thus depleting the most desirable options available to Weeks Program members who seek exchanges.
> 
> A settlement has been reached in this lawsuit. The Court will hold a preliminarily approval hearing regarding the settlement. If the settlement is preliminarily approved and you meet the definition of a class member, your rights may be affected. Currently, the preliminary approval hearing is scheduled for December 15, 2008.



What email or snail mail addresses are there to communicate with the court or attorneys?


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## theo (Dec 3, 2008)

*Addresses are there --but deadline is not...*



Carolinian said:


> What email or snail mail addresses are there to communicate with the court or attorneys?



Posts # 28 and #31 each include links to identifying the names and addresses of the attorneys. However, as I pointed out / asked previously (receiving no reply) the "objections must be postmarked by....." final line ends with a blank space (at least in my older version of MS Word). If anyone actually knows that postmark / deadline date, please share same. The clock is ticking if the preliminary approval hearing is on 12/15/08 
--- only 12 days away now.


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## lgreenspan (Dec 3, 2008)

*email link to Lawyer David C Berman*

http://www.njlawyer.com/Contact.asp


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## Carolinian (Dec 4, 2008)

As I recall a schduling order that was posted about earlier, the discovery was limited to issues of class certification until the class was actually certified.  That certification hasn't happened yet. Unless this has been modified, that means these class action lawyers have agreed to a weak settlement BEFORE they have even carried out discovery on the meat of their case.  What kind of attorneys would wave a white flag is this manner without first finding out how much ammunition they had for the battle?  The only way to really do that is through discovery.  From the postings of several RCI employees on what they have seen in RCI's computers, those would have been what the military calls a ''target rich enviroment'' for discovery in this case.

The only substance in the settlement, and the trinkets are never the substance in these cases, is the limitation on RCI's rentals.  If rental is wrongful, and it clearly is, while in the world would plaintiff's lawyers limit the restriction, mild as it is, to a two year period?  Why would that not begin immediately and extend indefinitely?  I also appears that RCI will merely agree to this restriction rather than it being court ordered by injunction, meaning it will be harder to enforce.

We all need to protest this sellout of our interests and rights to the courts.


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## JudyS (Dec 4, 2008)

Alan asked about giving his RCI Points week to an independent exchange company:



AwayWeGo said:


> Which ones take points ?
> 
> -- Alan Cole, McLean (Fairfax County), Virginia, USA.​



And Carolinian replied:



Carolinian said:


> You have to convert your points to an actual week.  With RCI Points, I suspect that would have to be taking use of your underlying week and giving that to the independent.


This is off-topic, but if a unit has been converted to RCI Points, it can *not* be deposited into any other exchange company.  Believe me, I know -- I have tried repeatedly. 

Basically, when a week has been converted to RCI Points, it is deposited into the RCI Spacebank.  Reserving the week during your Home Week Booking Window gives you the right to use your own week, but in all other respects, it is a deposit into RCI.  Your resort's records will show the week as committed to the RCI Spacebank (yes, even if you have reserved it during your Home Week Booking Window).  So, if you try to deposit into another exchange company, the resort will deny the request.


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## AwayWeGo (Dec 4, 2008)

*Good To Know.*




JudyS said:


> Basically, when a week has been converted to RCI Points, it is deposited into the RCI Spacebank.  Reserving the week during your Home Week Booking Window gives you the right to use your own week, but in all other respects, it is a deposit into RCI.  Your resort's records will show the week as committed to the RCI Spacebank (yes, even if you have reserved it during your Home Week Booking Window).  So, if you try to deposit into another exchange company, the resort will deny the request.


I think I'll just stick with _Last Call_ & _Instant Exchange_ as long as they last.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


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## Carolinian (Dec 4, 2008)

JudyS said:


> Alan asked about giving his RCI Points week to an independent exchange company:
> 
> 
> 
> ...



So they don't even give you the full right to your own week.  Points seems more and more underhanded the more I learn about it.  I think I would make an ''unfair and deceptive business practices'' complaint to the State AG Consumer Protection Division about both the resort and RCI if you were not FULLY informed of this restriction on your use of your own week when they sold you on points.


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## AwayWeGo (Dec 4, 2008)

*Straight-Weeks Unit At A Points Timeshare Resort.*




Carolinian said:


> I would make an ''unfair and deceptive business practices'' complaint to the State AG Consumer Protection Division about both the resort and RCI if you were not FULLY informed of this restriction on your use of your own week when they sold you on points.


Well, if I don't like it I don't have to leave it in points.  

I quit paying my RCI Points dues & -- _WHAM !_ -- my points timeshare week reverts to non-points status. 

I keep on paying my resort maintenance fees so I can check in there myself, rent out my week, or bank it conventionally with RCI Weeks for old-fashioned, plain vanilla week-for-week timeshare exchanges that we all know & love. 

All I can't do with it in that case is get points for it. 

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


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## LynnW (Dec 4, 2008)

I believe if you own a deeded week not a floating one you have the right to do what ever you want with it. We have 3 deeded weeks all converted to points and if I want to use one of these weeks I book it 12 to 13 months out and there is no charge. Once it is booked I can rent it do a direct exchange (which I have done last year) or deposit with another exchange company. If a book any other week but my deeded one during the home resort booking period I have to use it myself.

Lynn


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## famy27 (Dec 5, 2008)

theo said:


> Posts # 28 and #31 each include links to identifying the names and addresses of the attorneys. However, as I pointed out / asked previously (receiving no reply) the "objections must be postmarked by....." final line ends with a blank space (at least in my older version of MS Word). If anyone actually knows that postmark / deadline date, please share same. The clock is ticking if the preliminary approval hearing is on 12/15/08
> --- only 12 days away now.



There is no date yet.  If the court approves the preliminary settlement, they will then set the date, finalize details for the class notice, etc.  Once the class has officially been given notice (via RCI's website, newsletter, and USA Today), class members will be given a deadline to opt out to pursue their own litigation or to object to the settlement.

Of course, there is nothing stopping anyone from contacting plaintiffs' attorneys at this point to express dissatisfaction with the terms of the settlement.  However, official objections must be raise with court after notice has been given to the class.  

At this point, the judge may not even accept the terms of the proposed settlement.  We will know for sure after the hearing on Dec 15th.  That is why class members haven't received notice yet.


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## x3 skier (Dec 5, 2008)

In my experience, by far the most effective way to respond to poor or bad business practices is not to do business with the organization followed by small claims court. Relying on a class action suit to provide meaningful recompense to the members of the class with the exception of the lead plaintiffs is at best a long shot.

Still if you wish to petition the court, please do so.

I for one am letting my membership expire and if I get anything meaningful before then (or even after since I was a member when the alleged atrocities took place) I will be amazed. 

Cheers


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## theo (Dec 5, 2008)

*Thanks!*



famy27 said:


> There is no date yet.  If the court approves the preliminary settlement, they will then set the date, finalize details for the class notice, etc.  Once the class has officially been given notice (via RCI's website, newsletter, and USA Today), class members will be given a deadline to opt out to pursue their own litigation or to object to the settlement.
> 
> Of course, there is nothing stopping anyone from contacting plaintiffs' attorneys at this point to express dissatisfaction with the terms of the settlement.  However, official objections must be raise with court after notice has been given to the class.
> 
> At this point, the judge may not even accept the terms of the proposed settlement.  We will know for sure after the hearing on Dec 15th.  That is why class members haven't received notice yet.



Thank you for this clarification --- much appreciated! There is just so much WRONG with and about this proposed agreement in its current form that preparation of clearly articulated objections will be no small task. I didn't want to undertake that effort only to later just hear "sorry, too late..."

I can only hope that the judge (...and the plaintiff attorneys) in this matter truly comprehend enough detail about the RCI practices at issue here to understand that this so-called "settlement agreement", in its' current form, is very nearly worthless and just a complete farce...


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## crazyhorse (Dec 27, 2008)

*RCI website message*

I see the RCI website now has some information at the bottom of the sign-on page with details of the class action dates and various downloads.

The link for this is also here:http://www.weeksprogramsettlement.com/


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## Carolinian (Dec 28, 2008)

The key to making that approach work is to beat the drums to get the word out to other timesharers.  We need to press our resorts to let their members know what is going on and to inform them of the alternatives such as independent exchange companies.  The Seasons timeshare chain in Europe had a great special issue of their newsletter that lambasted RCI's rental and its preferences to Points, and at the same time announced it was defecting to II.  We need more to do what Seasons did, even if they don't defect to another company.  The word needs to get out in a meaningful way.




x3 skier said:


> In my experience, by far the most effective way to respond to poor or bad business practices is not to do business with the organization followed by small claims court. Relying on a class action suit to provide meaningful recompense to the members of the class with the exception of the lead plaintiffs is at best a long shot.
> 
> Still if you wish to petition the court, please do so.
> 
> ...


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