Lawsuit vs RCI [Blue Bay Resort, Mexico & RCI]

[nkldavy]

FYI:

http://legalnewsline.com/stories/510652201-illinois-men-allege-rci-misrepresented-time-share-program

 

[Ty1on]

FYI:

http://legalnewsline.com/stories/510652201-illinois-men-allege-rci-misrepresented-time-share-program

Interesting, I didn't know RCI sells....

 

[DeniseM]

Plus - it was sold in Mexico - where it seems that anything goes…

In reading the article, it seems that these two bought at a Mexican resort, the ownership was enrolled in RCI Points, and then the RCI rules on using the points were changed.

Either that, or the sales people lied upfront - which would be no surprise at all.

 

[theo]

I can't comment on ongoing litigation I know nothing about, but the question that comes to my mind is whether the on-site rep in Mexico was a RCI employee ("RCI Agent" in the story), acting with full RCI knowledge, or was s/he perhaps instead just a hungry, resort-affiliated sales weasel over peddling a RCI points product?
Plaintiffs going after the "deep pockets" of RCI of course makes perfect sense, but may not ultimately turn out to be on legally solid ground when all is said and done.

Reading the court filings would surely be more revealing than a media summary / version of alleged events, but it's an interesting situation nonetheless.

P.S. Isn't this the exact same judge and the exact same court that heard the farcical class action lawsuit against RCI a few years ago (...in which all the lawyers got rich and all the plaintiffs ultimately got a $10 discount coupon off their RCI membership and a hot cup of coffee --- or some such trivial nonsense settlement?)

 

[Ty1on]

Plus - it was sold in Mexico - where it seems that anything goes…

In reading the article, it seems that these two bought at a Mexican resort, the ownership was enrolled in RCI Points, and then the RCI rules on using the points were changed.

Either that, or the sales people lied upfront - which would be no surprise at all.

Or both. But I'm confused over what RCI's culpability in this would be. If your supposition is right, and I'm guessing it is, and plantiffs win, this will send a message to all kinds of TS related businesses about changing the rules midstream. But my guess is if there is any liability, it will fall on the resort, which will pretty much leave them uncompensated.

 

[tschwa2]

When RCI first sold RCI points and started points partners (to use points for airfare, hotels and other travel related things) the rules were a lot looser. Kind of a loop hole that Mexican resorts exploited to sell timeshares that allowed you to accelerate usage. So instead of one week a year for 100 years, owners could pay for 33 weeks for 3 years. The resort would flood RCI with 100's of studio units (often AI) for almost every week of the year, many of which ended up unused. A couple of years into this RCI closed the loophole first for specific Mexican Resorts who were doing this (like sunset and bluebay) and then a year or two later for all RCI points members, greatly restricting the number of annual points. With smaller chunks per membership the fees per usage add up much faster. For example buying two $4000 first class ticket with a $75 service fee per ticket and $2000 in MF's plus $150 in RCI membership fees ($4300 for $8000 in tickets) vs two $600 tickets with a $75 service fee and $200 in MF plus $150 in RCI membership fees plus $800 in cash because you cant use more points ($1250 for $1200 in tickets)

 

[DeniseM]

The two parties who filed the lawsuit bought in Mexico in 2008, and filed in 2010, so that sounds correct. They are probably suing RCI, because the US Courts have no standing in Mexico?

 

[Ty1on]

The two parties who filed the lawsuit bought in Mexico in 2008, and filed in 2010, so that sounds correct. They are probably suing RCI, because the US Courts have no standing in Mexico?

I agree, but I think if it plays out the way it does in my mind, the court will find that RCI was within its contractual terms with the resort to change the rules, and cannot be held liable. For that matter, even if the resort could be sued in the US, I think the court would find that the sales pitch was honest at the time of purchase, and the resort had no control over RCI's rule changes. So, in the end, I don't think the plaintiffs would win either case. But like I said, if they win, it could change the game.