RCI-Vent

[Pressman]

Hi All,
I am furious and a few other adjectives at RCI. I just booked an exchange at a cost of $420 Can. I expressed that I would like to use a US credit card and pay in American money. The reason being obviously to save money. I was told that because my address was in Canada I had to pay in Canadian currency.
US exchange fee $ 289.00. Canadian exchange fee $ 420.00. Those are the current facts.
I did an exchange last October and the cost to me in Can was $ 358.00. Seemed like a lot to me.
What was the American fee to exchange in Oct. 2022?
Any if you do the math $ 289.00 times the exchange rate of $ 1.36 Can to American is $ 393.04 a little short of $ 420.
If you do the math, the increase on last year would be $ 358 to $ 420 or 17.31%
I do not know what the exchange fee in US $ was a year ago to calculate a % increase.

A disservice to all Canadians! While I am at it, I paid Can $ 211 to combine and extend the TP from 2 weeks deposited for 1 year and if I want to extend the 23 TP I have left for another year it will be Can $ 231 more.

Not a lot of choices anymore. When I bought my timeshare it seemed like a good idea.

Questions I ponder. How does a company make money when it buys a RTU timeshare and then raises the maintenance fees? How do they make money? What is the advantage?
I know people who owned a timeshare in SXM at the Ocean Club that was destroyed by Irma and lost it all because of the Force de Majeure clause. The owners of Simpson Bay villas demolished a few buildings also due to Irma.

Did the insurance companies not pay the resorts with the Force de Majeure clause?

Thanks for letting me vent.

Pressman

 

[T-Dot-Traveller]

Hi All,
I am furious and a few other adjectives at RCI. I just booked an exchange at a cost of $420 Can. I expressed that I would like to use a US credit card and pay in American money. The reason being obviously to save money. I was told that because my address was in Canada I had to pay in Canadian currency.
US exchange fee $ 289.00. Canadian exchange fee $ 420.00. Those are the current facts.
Any if you do the math $ 289.00 times the exchange rate of $ 1.36 Can to American is $ 393.04 a little short of $ 420.
If you do the math ..........

Not a lot of choices anymore. When I bought my timeshare it seemed like a good idea..........
Thanks for letting me vent.

Pressman

RCI charges the GST on all transactions done for Canadians - it is part of the Cdn.Dollar Price ; so you need to add that to your math calculations
USD $ 289 x 1.36 = 393.04 [ x 1.07 = $ 420.55 ]

So : while you vent - blame Brian Mulroney .

 

[pedro47]

Who is Brian Mulroney ?

 

[T-Dot-Traveller]

Who is Brian Mulroney ?

Google him

Short answer . He could be lauded or blamed for the GST - goods and services tax. It is a federal VAT / Value added tax that as existed in Canada since Jan 1 -1991.

The OP's math was off - because RCI charges the GST on Canadian members transactions.
The 7% is included in the price.

 

[callwill]

You obviously need a fake US address for your dealings with RCI!

 

[pedro47]

Can the OP, used a USA post office box?

 

[moonstone]

Yep, I have had that argument with RCI many times with many people, including supervisors. We are also Canadian but own property in FL and have an American bank account. I have tried to get our RCI membership switched to our American address and the payments to come from our BoA account and they won't budge.
Another peeve of mine with RCI is that they are often very slow to adjust the exchange rate they charge, and rip off the Canadians. About 13 years ago when our dollar was worth more than the American dollar RCI wanted to charge me an exchange rate based on our dollar being worth 93 cents. I asked to speak to a supervisor to get at least an at par rate. When I told the girl that our dollar was worth more than the US dollar (I think it was at $1.07 at that point) she actually said that was impossible! I asked her to please read the news and be aware of what was going on outside of the USA. I finally got the exchange at par!


~Diane

 

[Carolinian]

Why is an American company collecting taxes for a foreign government for a transaction done in the United States? That stinks.

Check and see if RCI's competitors do that, and if not, move your business to a different exchange company.

 

[moonstone]

Why is an American company collecting taxes for a foreign government for a transaction done in the United States? That stinks.

Check and see if RCI's competitors do that, and if not, move your business to a different exchange company.

At one time, maybe still, RCI had an office in Canada, out east I believe. The Canadian Govt says that if a Canadian is buying goods or services from within Canada then we must pay the GST (Good & Services Tax). I highly doubt RCI is keeping it - they are selling something (a service) in Canada, so they need to turn over the GST to the Canadian Gov't. If I buy a US made T-shirt in Canada, from an American company that has a store up here, I need to pay the GST but that store needs to turn the GST they collect over to the Canadian Gov't. Any store/business that sells exempt merchandise (prescription drugs, basic groceries...) has to be registered as a GST Exempt business with the Gov't of Canada. It is all such a pain!

Here's a quirky thing with GST and groceries. If I buy a package of raw chicken to take home and cook, it is GST exempt. If I buy chicken lunch meat (obviously made with cooked chicken) it is GST Exempt. If I buy a chicken that is already cooked (ie; a Costco rotisserie chicken) I need to pay GST because somebody cooked it for me. Similarly if I buy a gallon (we have 4 liter bags) of milk, it is GST exempt. If I buy a small single serving bottle of milk I need to pay GST on it.


~Diane

 

[jp10558]

My main complaint about RCI is just that the exchange fee is a blatant rip off, except in a lot of cases you don't have other choices (HGVC for instance is RCI only AFAIK). I don't at all believe that if they actually had an efficient IT system that it costs them $5 per exchange, including a pretty hefty profit margin, forget about enough to make $289 sound like a reasonable profit. If you were going to go by e-bay fees to a seller, the value of the exchange would have to hit $1,800 (so maintenance fees for the year), which is towards the higher end for a week that I'm aware of. Heck, HGVC can do an internal exchange for $59, which also seems like a bit of a scam, but far less than the RCI fee.

 

[T-Dot-Traveller]

In my opinion - it is the big picture that matters.
what is the total cost - and how does it compare to other options.

$ 420 CAD = $ 60 per night [+ MF + any resort fees. ]
Is this a better price or a better value than a hotel room in the same area.

Either option is always more expensive than staying home and doing nothing.

 

[T-Dot-Traveller]

Why is an American company collecting taxes for a foreign government for a transaction done in the United States? That stinks.

Check and see if RCI's competitors do that, and if not, move your business to a different exchange company.

I believe RCI probably has a Canadian incorporated subsidiary to which it assigns all Canada based accounts.

I was a commission sales rep for a company that had that structure.
Netflix Canada is an example - you pay in Canadian dollars and as of July 1 2021 you pay federal GST and provincial HST .

 

[escanoe]

In my opinion - it is the big picture that matters.
what is the total cost - and how does it compare to other options.

This is completely true (and why I still deal with RCI).

However, in my view they basically amount to a vampire in the system.

In investing, it is total cost that matters as well. However, if stock brokerage fees were often approaching several times the value of what was being traded versus the 1 to 2% of total transaction costs or whatever is charged today, I think it would be healthy to question what the heck is going on.

RCI and II are a bloated duopoly charging a high price for an outdated inefficient system. They really need some competition.

 

[louisianab]

At one time, maybe still, RCI had an office in Canada, out east I believe. The Canadian Govt says that if a Canadian is buying goods or services from within Canada then we must pay the GST (Good & Services Tax). I highly doubt RCI is keeping it - they are selling something (a service) in Canada, so they need to turn over the GST to the Canadian Gov't. If I buy a US made T-shirt in Canada, from an American company that has a store up here, I need to pay the GST but that store needs to turn the GST they collect over to the Canadian Gov't. Any store/business that sells exempt merchandise (prescription drugs, basic groceries...) has to be registered as a GST Exempt business with the Gov't of Canada. It is all such a pain!

Here's a quirky thing with GST and groceries. If I buy a package of raw chicken to take home and cook, it is GST exempt. If I buy chicken lunch meat (obviously made with cooked chicken) it is GST Exempt. If I buy a chicken that is already cooked (ie; a Costco rotisserie chicken) I need to pay GST because somebody cooked it for me. Similarly if I buy a gallon (we have 4 liter bags) of milk, it is GST exempt. If I buy a small single serving bottle of milk I need to pay GST on it.


~Diane

There are tax rules here that are different for "already prepared/ready to eat" and groceries, just the same.

 

[moonstone]

I firmly believe the RCI should offer a significant discount for folks who do all their own research for an exchange, book and pay for it themselves and print their own Guest Certificate when needed, all not involving RCI (except for their lousy computer system) at all. I remember the days before computers and spending 30 or many more minutes on the phone with a rep with our catalogue in hand, deciding where we should go, getting info about the various resorts, booking a resort, making payment arrangements... I didn't mind paying the exchange rate back then. Now it just seems crazy to pay just a few dollars less than somebody who ties up a rep for a while doing everything most of us do ourselves.

But yes, I admit that paying the exchange rate and adding the cost of the points we use for a vacation, makes for a much cheaper vacation than if we had to rent a hotel room.


~Diane

 

[silentg]

Try direct exchange on TUG. We have done a few and recommended this to others. No money exchange. Very easy.

 

[escanoe]

I firmly believe the RCI should offer a significant discount for folks who do all their own research for an exchange, book and pay for it themselves and print their own Guest Certificate when needed, all not involving RCI (except for their lousy computer system) at all. I remember the days before computers and spending 30 or many more minutes on the phone with a rep with our catalogue in hand, deciding where we should go, getting info about the various resorts, booking a resort, making payment arrangements... I didn't mind paying the exchange rate back then. Now it just seems crazy to pay just a few dollars less than somebody who ties up a rep for a while doing everything most of us do ourselves.

But yes, I admit that paying the exchange rate and adding the cost of the points we use for a vacation, makes for a much cheaper vacation than if we had to rent a hotel room.


~Diane

And the truth is on balance the RCI racket isn't that bad if you want to pay cash to use time share units. Either the exchange fee or the cost of an "Exra" or "Last Call" is not that high when it is basically the whole vacation.

Log on to an RCI weeks account and look at the pages and pages of trades her in Virginia (especially Williamsburg or Massanutten) running through early next year that are literally discounted to 2 TPUs. So for exchanges like that I will have $40 mf dollars invested in the TPUs ($20 each) and up to $289 in the exchange fee plus whatever the resort fee is (ranging from free to well over $100).

In my mind these exchanges (even discounted) should be at least 7 TPUs but have an exchange fee of somewhere between $60 and $150 in an exchange fee and not involve a resort fee.

I realize my perfect world exists only in my head, but it would be nice if some kind of force existed to make the exchanges (II and RCI) modernize and be more efficient for consumers.

 

[jp10558]

This is completely true (and why I still deal with RCI).

However, in my view they basically amount to a vampire in the system.

In investing, it is total cost that matters as well. However, if stock brokerage fees were often approaching several times the value of what was being traded versus the 1 to 2% of total transaction costs or whatever is charged today, I think it would be healthy to question what the heck is going on.

RCI and II are a bloated duopoly charging a high price for an outdated inefficient system. They really need some competition.

For regular people you can get free trades now pretty easily from multiple brokerages. Because there's obvious and known competition. And there's not really the kind of one company contract for who can be a brokerage for pretty much all stocks or funds.

I mean, is RCI actually doing anything different than Uber?

 

[jp10558]

Try direct exchange on TUG. We have done a few and recommended this to others. No money exchange. Very easy.

Is this allowed with the bigger systems though? I feel like based on what I read, Wyndham wouldn't allow that, and HGVC might or might not... I guess this may be a reason to get an independent TS to trade in II or RCI, but I have no experience with that.

 

[silentg]

All you do is pay your fees and who ever you exchange with pays their fees, you inform your resort that your guest is using your week and the one you exchange with informs their resort. Doesn’t go thru the system. Private exchange read about it on direct exchange section on TUG.

 

[jasavak]

Ebay and Amazon are now doing the same thing
If I sell a product or sevice to a German Ebay collects tax and sends it to Germany
If I am from Oregon with no sales tax , ebay will tax the package going to Arizona

 

[Carolinian]

Yep, I have had that argument with RCI many times with many people, including supervisors. We are also Canadian but own property in FL and have an American bank account. I have tried to get our RCI membership switched to our American address and the payments to come from our BoA account and they won't budge.
Another peeve of mine with RCI is that they are often very slow to adjust the exchange rate they charge, and rip off the Canadians. About 13 years ago when our dollar was worth more than the American dollar RCI wanted to charge me an exchange rate based on our dollar being worth 93 cents. I asked to speak to a supervisor to get at least an at par rate. When I told the girl that our dollar was worth more than the US dollar (I think it was at $1.07 at that point) she actually said that was impossible! I asked her to please read the news and be aware of what was going on outside of the USA. I finally got the exchange at par!


~Diane

How about open a new membership with your US address? If you need a US phone number, get a Skype number in the US. After you use up all your deposits in the old account, let it expire.

Another option is to simply tell RCI if they are going to play those games, you will just start giving your deposits to a different exchange company like SFX.

 

[moonstone]

How about open a new membership with your US address? If you need a US phone number, get a Skype number in the US. After you use up all your deposits in the old account, let it expire.

We are seriously thinking of going that route now that we have taken over (stopped renting out) our condo. We have a US Cell number that we only use during the winter then it gets suspended (ported to Number Barn) while we are back home. We would likely need to pay a new member fee to RCI for a new account. Our current membership expires next May. We will do some more investigating while we are down this winter.


~Diane

 

[terminator]

RCI charges the GST on all transactions done for Canadians - it is part of the Cdn.Dollar Price ; so you need to add that to your math calculations
USD $ 289 x 1.36 = 393.04 [ x 1.07 = $ 420.55 ]

So : while you vent - blame Brian Mulroney .

Do you know for a fact that RCI charges us (Canadians) for all transactions because so far in my research I have determined that all the fees they charge are not taxable? Work in progress. Brian Mulroney is not the culprit. You should research the federal sales tax in effect prior to GST.

 

[terminator]

Why is an American company collecting taxes for a foreign government for a transaction done in the United States? That stinks.

Check and see if RCI's competitors do that, and if not, move your business to a different exchange company.

It is questionable whether RCI is carrying on a business for GST purposes when you consider all the relevant facts. Anyone concerned with this nonsense should be researching the GST web pages, or making phone calls. I don't know of any T/S exchange companies in US charging GST to Canadians...and perhaps (so far) justifiably so.