UPDATE: RCI CLASS ACTION LAWSUIT - must read for all RCI members [Includes Results]

[Goofyhobbie]

Welcome To TUG

Bunny217 posted: Can anyone point us in the right direction?

Is it too late to be involved? No you are still in time!
We've been RCI members since about 1985...we've just followed along like sheep I guess.....

Can anyone explain in a nutshell what we should do to help or get involved?
thanks...Barb in Texas

(Barb, your Post is #400 on this Thread.) You can see your number on the top right of your post.

Please go to Post # 384 and read carefully. For more good information go to Post # 1, #42 and #46 of this thread.

 

[Almstnownr]

Saved by Tug!!

Just a note thanking all the members of this site for the wonderful informative information reguarding RCI and the obvious stealing of members property. We just returned from a Vegas trip, bought a timeshare at the Grandview, rated a gold star and red. We were given a so called bonus week from RCI to use on our off years. I was skeptical about the whole exchange thing from the get go so I did some research and viola found your site. We were TOLD, this was a privately owned condos and only owners would be using the resort. HA what a load of crap!:annoyed: I typed in the Grandview and it came up as a HOTEL and the condos were being rented to anyone and everyone and at really cheap rates as low as 70$ a night. They were listed on every travel site known to mankind. The so called bonus week were limited to off times and only a few resorts so vitually useless for our travel needs. It made no sense to me to pay for m/f, fees to RCI, the cost of timeshare ownership there, just to have my time rented to joe public with no interest invested whatsoever. After spending numerous hours here reading through all the posts we made the decision to cancel our purchase, luckily we were in the timeframe allotted to do so. What a scam this business has become, developers in bed with RCI to get as much money as they can from unsuspecting people walking into their traps. I read in the RCI info packet they gave us that the Grandview has over 1000 members alone.

 

[TUGBrian]

confirmed, I will have some new info to post for all of you tomorrow afternoon.

 

[BigElm]

^ Looking forward to it...

For the record, I have not sent any form filled out yet in hopes to see what our Objection representatives are able to accomplish. I read something about a list of objectors, is that something Jennie or Susie has somewhere or just send an email/PM? I think I read that, I just wanted to be clear before I bother anyone here

 

[Fredm]

Bump

We all appreciate the effort Jennie and the other objectors are putting forth in the name of justice. RCI has become a parasite on timesharing.

Words alone cannot support the selfless investment of time, energy and money being spent to represent our interests in this case.

How about TUG starting a defense fund to support the efforts of Jennie and others that are representing all of us?
If nothing else, it can help offset the cost of gas, supplies, and other necessary expenses.

If TUG will act as a repository, I will kick in my $20.

Any interest in doing this?

 

[Fredm]

RCI Rental Revenue

For those interested in the magnitude of RCI's timeshare rental business, it will generate ~$620,000,000 in revenue this year.
Second quarter 2009 was $158,000,000.

Puts the whole issue in some perspective when discussing what is fair to members.

 

[TUGBrian]

im not sure of the legal ramifications of doing this, as money sent to TUG would likely just be considered income (and taxable) etc.

if you were to do something like this, id think sending it directly to said individuals paypal account would be more appropriate.

 

[theo]

Your source???

For those interested in the magnitude of RCI's timeshare rental business, it will generate ~$620,000,000 in revenue this year.
Second quarter 2009 was $158,000,000.

Puts the whole issue in some perspective when discussing what is fair to members.

Not disputing / challenging your statement, but I'm curious to know where those figures come from....

 

[geekette]

Not disputing / challenging your statement, but I'm curious to know where those figures come from....

Yes, and I want to be sure it is ONLY RENTALS.

 

[rickandcindy23]

I heard something on the news today about Wyndham, but I heard it while I was on the phone, kind of in the background, and I went to turn it up, and I hit the channel change button, so I couldn't go backwards.

I think Wyndham is restructuring it's business model, including RCI, but I could be wrong.

 

[Fredm]

Ah, didn't consider that.

Good alternative.

How about it Jennie? Is there an account we can send donations to?

 

[Fredm]

Not disputing / challenging your statement, but I'm curious to know where those figures come from....

Directly from Wyndham's financials.

"Vacation Exchange and Rentals (Group RCI)
Revenues were $280 million in the second quarter of 2009, an 11% decrease compared with the second quarter of 2008, primarily related to the impact of unfavorable foreign currency movements. In constant currency, revenues decreased only 1%, as favorability in vacation rental revenues was offset by lower ancillary revenues.

Annual dues and exchange revenues were $112 million, relatively flat in constant currency compared with the second quarter of 2008 reflecting a 3% increase in the average number of members and a 4% decline in revenue per member. Including the impact of foreign currency, revenues declined 6% from the second quarter of 2008."

 

[Fredm]

Yes, and I want to be sure it is ONLY RENTALS.

Yep, just rentals. Memberships and exchange fees have been backed out.

280mm less 112mm in dues and fees = 168mm . Oops! I said 158mm. Looks like 168mm.

RCI claims 137mm rentals for the 2nd quarter. The rest is in interest income, etc.

 

[bunny217]

thank you..

GoofyHobbie/Dave for pointing me where I should go and start...I've printed out the posts you highlighted and have read through them...I also looked up the "action" suit info on the RCI site...and this confuses me...would this be us? We've always owned weeks, and then three years ago took two of those weeks and turned them into points...keeping the other 2 weeks as weeks....so are we included or not? This is what I copied from the site:

People who were members of the RCI Weeks Exchange Program at any time from January 1, 2000 through August 31, 2009 may be eligible for special settlement benefits. If you are or were a member of the RCI Points Exchange Program, but you were not also a member of the RCI Weeks Exchange Program at any time from January 1, 2000 through August 31, 2009, you are not a member of the Settlement Class.

Also...there is a list of "Eligible for Expiring Benefits" on that link too....I see my husband's name...(or maybe there's a few people with that name) on it. What is that?
I'm sorry to be asking so many questions...but we were really sad and disappointed that we've not been able to arrange for my daughter and her family to stay with us at Orange Lake, when we are there...we had to do a "last call" week at another resort down the road.
I wish there was a "Timeshare Friendly to Owners - Dummy Book" for people like me....I'm so glad to have found this site, but still get so confused at everything there is to know. I really hate going to those "meetings" that they want you to go to each vacation....they really upset me. We never hear the same thing twice...
Well - thank you again for listening....Barb in Texas

 

[geekette]

Yep, just rentals. Memberships and exchange fees have been backed out.

280mm less 112mm in dues and fees = 168mm . Oops! I said 158mm. Looks like 168mm.

RCI claims 137mm rentals for the 2nd quarter. The rest is in interest income, etc.

holy crap. that's ... obscene.

 

[geekette]

Sounds to me like you are a class member for the Weeks action.

Don't know about the expiring benefits thing.

There is a Timeshare for Dummies book but I don't recommend it. Much is false and/or misleading. If you really want it, check it out of the library vs spending money on it. it could be a decent starting point for you or "well, duh, I knew all that!"

On this site you can find honest info and experience. stick around, ask questions. You don't need a book when you have an interactive place to drop in and get answers to your specific questions, not general 'when x, then y' crap that never seems to fit your situation.

skip the "meetings", they are just sales presentations so generally not geared to benefit you!

GoofyHobbie/Dave for pointing me where I should go and start...I've printed out the posts you highlighted and have read through them...I also looked up the "action" suit info on the RCI site...and this confuses me...would this be us? We've always owned weeks, and then three years ago took two of those weeks and turned them into points...keeping the other 2 weeks as weeks....so are we included or not? ...
Also...there is a list of "Eligible for Expiring Benefits" on that link too....I see my husband's name...(or maybe there's a few people with that name) on it. What is that?
...
I wish there was a "Timeshare Friendly to Owners - Dummy Book" for people like me....I'm so glad to have found this site, but still get so confused at everything there is to know. I really hate going to those "meetings" that they want you to go to each vacation....they really upset me. We never hear the same thing twice...
Well - thank you again for listening....Barb in Texas

 

[Fredm]

holy crap. that's ... obscene.

Obscene is one way to put it.

Think about it. It is the largest stream of revenue in the entire corporation. And owners pay the HOA fees, turn in the inventory for a trade, and RCI keeps 100% of the income.

$600 MILLION+ a year, every year, and growing.

And, their benevolent souls are willing to settle this claim, without admitting wrongdoing for worthless trinkets.
19th Century robber barons were saints compared to these guys.

The ONLY thing more disgusting are the lawyers who sold out the class.

I have been following this for 13 years. Ever since Cendant purchased RCI in '96.
In '97 they followed with acquiring Fairfield and Trendwest.
They then launched RCI Global Points Network (now RCI Points).

This rental scam was orchestrated right under everyone's nose.

I quote verbatim Henry J. Silverman, Chairman and CEO, Cendant Corp. in his January 2003 presentation ‘Travel Industry Outlook’ to the American Lodging Investment Summit. “The weekly-interval model for timeshare will be eliminated within five to ten years in favor of points-based timeshare usage.”

Points are the ultimate shell game. If anyone wonders what is in it for them, you now have the quantifiable answer.

Cendant soiled its name so badly, it simply realigned its components and changed their name to Wyndham Worldwide. Wyndham hotels were, and are, a hotel chain under their umbrella.

I know there are many "point" proponents. But, wait. Your turn is coming. They have been generous because they needed you to screw the rest of the timeshare world. NOTHING makes or guarantees that points work except Wyndham's promise.
You are in the grinder and just don't know it.

 

[Jennie]

hopefully some new and useful info will be available on TUG soon for all of you to read. =)

Susan Collins, the Attorney who has attended the last two Federal Court hearings in New Jersey, and has fought very hard for an improved settlement in the Weeks class action lawsuit, will post a detailed update here on TUG in a day or two. She was unable to do so while in active negotiatins with RCI.























s

 

[Goofyhobbie]

Update

I have retained Susan B. Collins as my legal counsel. She will represent me and hundreds of other objectors before the Court at NO COST to any member of the class who chooses to object and sign on with her as your legal counsel.

I apologize for the delay in getting back to the board with how you can proceed from here. Both Jeannie and I are working very closely with Susan.

The goal is to come to a consensus among the objectors and then move forward with as much clout as possible.

Like Susan and Jeannie, I have been extremely tied up drafting instructions and a Form Letter which Susan will review before I post it here.

It is our goal to get as many of you on board as possible. As Jeannie has stated ahead of me, the information you are waiting for should be available within the next couple of days if not sooner.

If you decide to sign on with Susan as your counsel, she will represent you well because she is one of you a member of the class. Once on board you can expect a personal E-Mail to each of you to first bring you up to date and then to tell you how we will stay in touch.

Having your own legal counsel will provide you with excellent insight into what is going on and you will no longer feel like you are sitting under a mushroom as birds fly by and tell you all sorts of scuttlebutt or pelt you with their droppings. :hysterical:

Stand by.

We are trying our best to make the process as simple as possible for each of you.

Dave

 

[GadgetRick]

I have retained Susan B. Collins as my legal counsel. She will represent me and hundreds of other objectors before the Court at NO COST to any member of the class who chooses to object and sign on with her as your legal counsel.

I apologize for the delay in getting back to the board with how you can proceed from here. Both Jeannie and I are working very closely with Susan.

The goal is to come to a consensus among the objectors and then move forward with as much clout as possible.

Like Susan and Jeannie, I have been extremely tied up drafting instructions and a Form Letter which Susan will review before I post it here.

It is our goal to get as many of you on board as possible. As Jeannie has stated ahead of me, the information you are waiting for should be available within the next couple of days if not sooner.

If you decide to sign on with Susan as your counsel, she will represent you well because she is one of you a member of the class. Once on board you can expect a personal E-Mail to each of you to first bring you up to date and then to tell you how we will stay in touch.

Having your own legal counsel will provide you with excellent insight into what is going on and you will no longer feel like you are sitting under a mushroom as birds fly by and tell you all sorts of scuttlebutt or pelt you with their droppings. :hysterical:

Stand by.

We are trying our best to make the process as simple as possible for each of you.

Dave

Sounds like a great idea. How do we go about doing this?

 

[Carolinian]

I am an attorney and I happened to speak with counsel on the newly filed RCI Points Class Action yesterday.

I happened to mention the objectors in the RCI class action trying to create a class of objectors and he laughed. In class actions that is the whole purpose of retaining a class "representative". Ironically, he then reviewed techniques to artfully negotiate an improved Settlement.

I mention this since the selection of an attorney is an important decision. When we see oxymoronic conduct in the profession, we do what we can to correct it. If anyone would like to discuss the case, I am sure I can direct them accordingly.

Cordially,

Was that a nervous laugh? Hopefully he does not have the same intention as the slimeballs who are the official attorneys fpr plainiffs in the Weeks case to line his pockets personally while stabbing his clients in the back.

 

[Simoncc]

Obscene is one way to put it.

Think about it. It is the largest stream of revenue in the entire corporation. And owners pay the HOA fees, turn in the inventory for a trade, and RCI keeps 100% of the income.

$600 MILLION+ a year, every year, and growing.

Before you get carried away with the rental figures quoted above, RCI have a number of companies in the group whose only source of income is holiday rentals - I have referred to some of these earlier in this thread eg. Landal, Holiday Cottages.

I suspect that the actual amount of revenue through renting deposited exchanges is a small percentage of the figure you quote - but still a significant proportion of the income generated by the company you and I would probably consider the 'true' RCI.

 

["Roger"]

As the previous post notes, most (and quite possibly all) the rental figures refer to a collection of European operations. When you look at some of the investor presentations, RCI speaks of setting up some rental operations in the United States. My suspicion is that all the timeshare rental money is listed under their timeshare figures and none of it under rentals.

 

[Simoncc]

Remember the resorts that "give" those rentals to RCI have to be paid, but still that is a lot of "revenue".

I think you are mis-understanding my post. The companies I refer to sell direct to the public and this is where nearly all their rental income comes from.

However, these companies also do provide some inventory to the RCI weeks pool (I've exchanged into a Landal resort myself for next year) and no doubt some cash will change hands from the RCI exchange company and this will probably come from a rental of a unit.

 

[TUGBrian]

yes, legal items prevented me from posting what I did as well...i just jumped the gun. rest assured you will get all the info you need here as soon as its available!