Redweek holding all payments regardless???

[dioxide45]

Redweek is violating the terms of the contract to favor the renter because they are betting it will be less painful for them long term. Renters will come back. Some owners will stay away but many are desperate and will continue to use RW when this is over.

I think this is a wake-up call to maybe get out of renting out timeshares all together. Renters are going to be more nervous now about prepaying without protection. Everyone is feeling the pain.

You make a good point. I think this was the path of least resistance to them. There are always more owners out there than renters trying to rent weeks. They may take on a few lawsuits, but most owners will just chalk up the loss. Some will come back, some won't. There are other options out there, but many of them are going the same route as Redweek. Renting is always a risky business, especially if someone is paying by credit card as there was always the risk of chargeback. Renters with experience of the current situation will want the protection Redweek offers. Owners will want more protection too. Unfortunately you can't protect them both, unless Redweek can perhaps come up with an insurance product that helps owners in these cases, though any insurance company is going to want to exclude pandemics.

 

[pchung6]

Does anyone think this might eventually bankrupt Redweek since it’s a small company and they might not have resources to weather the storm with all the refunds, angry owners and sellers, and zero revenue for many months?

 

[dioxide45]

Does anyone think this might eventually bankrupt Redweek since it’s a small company and they might not have resources to weather the storm with all the refunds, angry owners and sellers, and zero revenue for many months?

They only seem to be refunding out of the escrow. This is money that should just be sitting there. I don't see where they are refunding any actrual profit items, like listing fees to owners. The lack of future revenue is a concern. I guess it all depends on their cash on hand situation, which with them being a private company no one knows what that is.

 

[TheTimeTraveler]

My resort ne

Does anyone think this might eventually bankrupt Redweek since it’s a small company and they might not have resources to weather the storm with all the refunds, angry owners and sellers, and zero revenue for many months?

Let's hope they don't go under. I was one of the ones who signed up for their annual membership special that they ran in late November 2019 or December of 2019 in which one could get their annual 2020 membership fee for a discount. I remember you could somehow "trick" the system and renew for additional years with the discount.

From what I recall a lot of TUG members heard about this available "trick" and renewed for multiple years. I also was one who did this.....





.

 

[vacationtime1]

Let's hope they don't go under. I was one of the ones who signed up for their annual membership special that they ran in late November 2019 or December of 2019 in which one could get their annual 2020 membership fee for a discount. I remember you could somehow "trick" the system and renew for additional years with the discount.

From what I recall a lot of TUG members heard about this available "trick" and renewed for multiple years. I also was one who did this....

Personally, I'm fine if Redweek goes under after what it has done (and is still doing) to owners renting timeshares using its escrow service.

Even if I lose my $15 membership.

 

[DanCali]

You make a good point. I think this was the path of least resistance to them. There are always more owners out there than renters trying to rent weeks. They may take on a few lawsuits, but most owners will just chalk up the loss. Some will come back, some won't. There are other options out there, but many of them are going the same route as Redweek. Renting is always a risky business, especially if someone is paying by credit card as there was always the risk of chargeback. Renters with experience of the current situation will want the protection Redweek offers. Owners will want more protection too. Unfortunately you can't protect them both, unless Redweek can perhaps come up with an insurance product that helps owners in these cases, though any insurance company is going to want to exclude pandemics.

If they refund my renter, I figure they cheated me out of around $2500. Even factoring in the cost of flight + hotel to sue them in small claims court in WA, I would do it. In my (non-attorney) opinion, this is a slam dunk case - no fire, storm or flood, non-refundable contract, and resort is open - then a pandemic should not be my problem. Renter had the option to buy travel insurance and could have added a "cancel for any reason" rider offered by some insurance companies. If you want a full refund like Marriott offers, go rent from Marriott and pay them double or more...

I had a renter who rented directly from me and I worked with them to cancel in a timely fashion, bank points and will book them a reservation next year. But in the case of renting through Redweek I don't get that flexibility, so I just have to go by what the contract says - and it favors the owner, not renter.

I hope I'm just retting riled up for nothing - so far they didn't even email me that the renter opened a dispute and I hope it stays that way, but I'm very annoyed after reading that letter.

 

[dioxide45]

If they refund my renter, I figure they cheated me out of around $2500. Even factoring in the cost of flight + hotel to sue them in small claims court in WA, I would do it. In my (non-attorney) opinion, this is a slam dunk case - no fire, storm or flood, non-refundable contract, and resort is open - then a pandemic should not be my problem. Renter had the option to buy travel insurance and could have added a "cancel for any reason" rider offered by some insurance companies. If you want a full refund like Marriott offers, go rent from Marriott and pay them double or more...

I agree. I am not saying Redweek is right or wrong. They just went the path of least resistance. They know most owners won't bother to sue and one would be hard pressed to find an attorney to go after them with a class action as the overall amount is small and any judgement would likely result in bankruptcy and the attorney and the plaintiffs are likely to end up with nothing anyway.

 

[Saintsfanfl]

I have a Redweek renter with a 4/10 check-in at Ocean Pointe. I haven’t received anything from Redweek on a cancellation. I emailed them but I don’t expect a response. I was obviously letting it ride but after seeing the letter I am inclined to just cancel it. Ocean Pointe is almost a ghost resort right now. I don’t know where the renter lives and I don’t have their contact info. I can’t imagine getting paid since Redweek changed their stance unless somehow the renter shows up. They may have already canceled but Redweek is too backlogged.

Fortunately that’s the last of mine until end of June, but even just losing that one hurts.

 

[ocdb8r]

If they refund my renter, I figure they cheated me out of around $2500. Even factoring in the cost of flight + hotel to sue them in small claims court in WA, I would do it. In my (non-attorney) opinion, this is a slam dunk case - no fire, storm or flood, non-refundable contract, and resort is open - then a pandemic should not be my problem. Renter had the option to buy travel insurance and could have added a "cancel for any reason" rider offered by some insurance companies. If you want a full refund like Marriott offers, go rent from Marriott and pay them double or more...

I had a renter who rented directly from me and I worked with them to cancel in a timely fashion, bank points and will book them a reservation next year. But in the case of renting through Redweek I don't get that flexibility, so I just have to go by what the contract says - and it favors the owner, not renter.

I hope I'm just retting riled up for nothing - so far they didn't even email me that the renter opened a dispute and I hope it stays that way, but I'm very annoyed after reading that letter.

Read closer, my friend. The contract states: The sole and exclusive venue for any legal proceedings or disputes relating to this agreement shall be the Circuit Court of the Ninth Judicial Circuit of Florida in Orange County, Florida. So based on your profile saying you're in FL, may be even an easier slam dunk for you! Please, if you end up screwed, do it. I'd show up just for moral support and to cheer you on!

 

[CPNY]

Read closer, my friend. The contract states: The sole and exclusive venue for any legal proceedings or disputes relating to this agreement shall be the Circuit Court of the Ninth Judicial Circuit of Florida in Orange County, Florida. So based on your profile saying you're in FL, may be even an easier slam dunk for you! Please, if you end up screwed, do it. I'd show up just for moral support and to cheer you on!

I may come too and support..... standing 6 feet away of course

 

[DanCali]

Read closer, my friend. The contract states: The sole and exclusive venue for any legal proceedings or disputes relating to this agreement shall be the Circuit Court of the Ninth Judicial Circuit of Florida in Orange County, Florida. So based on your profile saying you're in FL, may be even an easier slam dunk for you! Please, if you end up screwed, do it. I'd show up just for moral support and to cheer you on!

Indeed I missed that. Looks like Redweek Real Estate LLC is a FL Corporation.

 

[dioxide45]

Indeed I missed that. Looks like Redweek Real Estate LLC is a FL Corporation.

Their PO Box is in California.

About RedWeek.com | RedWeek

RedWeek is the world's largest timeshare marketplace, with over 3 million registered users and an A Better Business Bureau (BBB) rating

www.redweek.com

 

[vol_90]

Personally, I'm fine if Redweek goes under after what it has done (and is still doing) to owners renting timeshares using its escrow service.

Even if I lose my $15 membership.

I would not be fine with Redweek going under. I actually like the platform and ease of use. I had 18 confirmed rentals posted for check ins between March 21st through May 24th (Aruba, Hawaii & Palm Desert). I fully expect all to be cancelled with renters being fully refunded. It's been a lot of work to manage but *bleep* happens and we move on. I will get some value out of the redeposited Marriott points. I'm still alive along with my renters who should not travel!

 

[Mroze]

I have a Redweek renter with a 4/10 check-in at Ocean Pointe. I haven’t received anything from Redweek on a cancellation. I emailed them but I don’t expect a response. I was obviously letting it ride but after seeing the letter I am inclined to just cancel it. Ocean Pointe is almost a ghost resort right now. I don’t know where the renter lives and I don’t have their contact info. I can’t imagine getting paid since Redweek changed their stance unless somehow the renter shows up. They may have already canceled but Redweek is too backlogged.

Fortunately that’s the last of mine until end of June, but even just losing that one hurts.

My 1BR-PR WKV rented for Apr 4th - 11th, 2020 was also canceled.
On Mar 25th, RedWeek left the following message on the website under "My Messages".

=================================
A dispute was opened concerning this booking, as permitted by section 2 of
the Rental Agreement.
The RedWeek arbitration panel has reviewed this case and determined that,
due to the ongoing global Covid-19 pandemic, the rental unit is not
habitable.
Per section 2 of the Rental Agreement, therefore, the panel has found in
favor of the renter, and will be issuing them a refund.
We are sorry this booking did not work out as planned. These are
unprecented times and we appreciate your understanding in this matter.

Sincerely,
RedWeek​.com Customer Service
===================================

I responded asking if we [renter and me] could work something out but no response.

This is the 3rd week [and thankfully last] that RedWeek canceled on me.
I refunded $2000 to each of the previous 2 renters and retained my fees of ~$200 which RedWeek refunded me.
However, for this last rental they didn't give me an option and simply left the above message.

Thus I went ahead and canceled the reservation with Vistana online.
After cancelling I discovered a hole in Vistana's offer to reduce restrictions on late cancellations.
Only 13,900 [of the 81K-SO] were returned to "Restricted Banked StarOptions" [Expiration-Date: Dec-31-2021].
However, the bulk of the 81K [67100-SO] ended up as "Restricted StarOptions".
This is most likely because I had used Banked StarOptions for this reservation.
Oh well. when it rains it....

 

[sportsfan1]

Redweek has left me in a precarious position. I have a week rented at Marriott Grande Ocean in mid-June. Unfortunately, no one knows exactly where we will be in mid-June, but Redweek has made it clear that they will be siding with the renters. My renter has yet to request a cancellation, but I am stuck because it appears that RW will allow a renter to cancel at anytime for a full refund - leaving me very little options to reschedule my timeshare week if the renter cancels with little notice.

I have some flexibility right now because I am still 60+ days out, but I don't know whether to cancel with the renter and risk rescheduling to another week with little availability, keep the reservation and run the risk of a cancellation request as the week nears, or some other option.

Seems like RW would no longer consider this an "unforeseen event". That's what travel insurance companies are now doing. There's enough knowledge about the current situation that RW should force the renters to either submit a cancellation request by a certain deadline or stay locked into the contract. At least then there is clarity on what the renter needs to do, and there is some protection for owners who need to make decisions around what to do with their week.

Why is Redweek literally doing nothing? It's one thing to have an answer for upcoming weeks, but what about reservations that are still 60+ days out?

 

[ocdb8r]

Redweek has left me in a precarious position. I have a week rented at Marriott Grande Ocean in mid-June. Unfortunately, no one knows exactly where we will be in mid-June, but Redweek has made it clear that they will be siding with the renters. My renter has yet to request a cancellation, but I am stuck because it appears that RW will allow a renter to cancel at anytime for a full refund - leaving me very little options to reschedule my timeshare week if the renter cancels with little notice.

I have some flexibility right now because I am still 60+ days out, but I don't know whether to cancel with the renter and risk rescheduling to another week with little availability, keep the reservation and run the risk of a cancellation request as the week nears, or some other option.

Seems like RW would no longer consider this an "unforeseen event". That's what travel insurance companies are now doing. There's enough knowledge about the current situation that RW should force the renters to either submit a cancellation request by a certain deadline or stay locked into the contract. At least then there is clarity on what the renter needs to do, and there is some protection for owners who need to make decisions around what to do with their week.

Why is Redweek literally doing nothing? It's one thing to have an answer for upcoming weeks, but what about reservations that are still 60+ days out?

This is precisely the situation I am in.

I decided to take matters into my own hands and sent RedWeek a message that I would cancel the reservation this week unless they confirmed any future cancellations would distribute losses from this situation equally between the renter and the owner (i.e. they get a 50% refund and I get a 50% cancellation fee). If they don't respond, I will cancel and reach out to the renter, offer them the week on similar terms or reschedule it so I can derive some sort of value out of it.

 

[bnoble]

Why is Redweek literally doing nothing?

My guess: renters have a LOT of other options for spending their vacation dollars. Owners have fewer available outlets and therefore less competition for Redweek. Moreover, given the direction the economy is headed the supply of rental weeks is likely to go up in the next few years, while the demand for vacation rentals is likely to go down.

 

[pchung6]

I just received the call from Redweek this morning and we were able to cancel the 2 existing reservations with renters. I will receive 2 rental service credits for future use and renters will receive their funds back. I will cancel my reservations with Vistana >60 days and get unrestricted points back. Although I lost potential $5000 rental income, but everyone is getting screwed by this pandemic. I will just accept the fact and bank my points, then move on from it.

 

[vol_90]

Credit card companies siding with renters as well:

We regret to inform you the renter XXXXXX, has filed a chargeback on the rental funds for booking XXXXXXXXXXX.

Unfortunately, the credit card company sided with the credit card issuer. This means the funds were withdrawn from our account and we are not able to disburse the funds to you.

We apologize for the inconvenience this may have caused. Please understand this is completely out of our control. We regret that the rental did not work out as you expected. As a courtesy, we have added a credit to your RedWeek account for a future posting purchase.

Hope you and your family stay safe.

 

[echino]

That's what Redweek says. You don't really know how Redweek responded to the chargeback. Maybe they just agreed to refund and did not fight it.

 

[dioxide45]

That's what Redweek says. You don't really know how Redweek responded to the chargeback. Maybe they just agreed to refund and did not fight it.

Very true. Redweek doesn't have any incentive to fight the charge back. Easier to not do anything given their huge backlog of work.

 

[DanCali]

Well - some good news on my end. I guess one of my renters didn't open a dispute and I ended up getting paid by RedWeek a few days after the checkout date (had to send am email to ask when I am finally getting paid).

Either way - I am done with escrow services or working with any type of broker such as Stay PC or Vacation Candy. Until 2019 all my rentals have been using my own contracts and it worked our great for everyone so I'll go back to that option...

 

[dioxide45]

Well - some good news on my end. I guess one of my renters didn't open a dispute and I ended up getting paid by RedWeek a few days after the checkout date (had to send am email to ask when I am finally getting paid).

Either way - I am done with escrow services or working with any type of broker such as Stay PC or Vacation Candy. Until 2019 all my rentals have been using my own contracts and it worked our great for everyone so I'll go back to that option...

Just be sure to accept payment by check. If you allow Paypal, they could then dispute a CC charge.

 

[DanCali]

Just be sure to accept payment by check. If you allow Paypal, they could then dispute a CC charge.

I think the only option they have is checks via a site called checkbook.io. They give you the option to print it (didn't work for me - allegedly checkbook.io had a tech glitch), mail a paper check to you, or direct deposit it via e-transfer to bank.

This whole thing is very unfortunate because the process seems to have been working quite well and there was potential to add value to both owner and renter via this escrow. Renters would get peace of mind and owners could potentially get higher rental prices in exchange for the peace of mind and for deferring receipt of the payment by a few month (I've had people contact me on other listings and ask me to use the escrow service saying they would pay me more if I did). But with Redweek totally distorting the literal wording in the contract and using some nebulous interpretation of "habitable" they tipped the balance in an untenable way for owners, or at least for me. I came out ok overall from my experience with them, but won't do it again.

 

[VacationForever]

My renter pays via wire or check, so I believe there is little risk.