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

[thheath]

:rofl: :hysterical:

Excellent!

Your point is certainly well taken. It would be nice to get a lot of RCI owners who have properties in Missouri to get letters off to the Missouri AG.

Just as in the past if someone who is knowledgeable were to post a sample letter to the AG (with address) it would help those with Missouri ties.

 

[Goofyhobbie]

For Consumer Complaints To AG of Missouri

To any Missouri resident considering sending a consumer complaint to the Attorney General of the State Of Missouri a complaint form is available on line.

http://ago.mo.gov/consumercomplaint.htm

Quoting from the AG website:

http://ago.mo.gov/publications/timeshares2.htm

Under state law, timeshares are defined as merchandise and fall within the guidelines of Missouri's Merchandising Practices Act, Chapter 407, Missouri Revised Statutes.

Use of any deception, fraud, false pretense, false promise, misrepresentation, unfair practice or concealment of fact by a person in connection with the sale of timeshares is subject to civil and criminal penalties that may be brought by the Attorney General.

Reading further:

Major provisions of a state law protecting buyers include:

Explanation of timeshare exchange plans. Exchange plans usually involve trading a vacation at one timeshare facility for a vacation in another location. Limitations, restrictions or priorities regarding exchange programs must be outlined for the buyer. For example, the timeshare operator must tell a buyer if a Lake of the Ozarks vacation can be exchanged for an Alaska vacation only during December.

 

[robbiefields]

http://www.timeslive.co.za/business/article283700.ece

From the RCI "Eat Cake And Have It Too" Department

 

[ecwinch]

Just as in the past if someone who is knowledgeable were to post a sample letter to the AG (with address) it would help those with Missouri ties.

Unfortunately I think in most cases it really has the opposite effect. When all the letters look the same, courts and governing agencies tend to treat those complaints differently. I have read cases findings were the judge draws that observation and characterizes it more as an organized letter writing campaign.

 

[thheath]

Unfortunately I think in most cases it really has the opposite effect. When all the letters look the same, courts and governing agencies tend to treat those complaints differently. I have read cases findings were the judge draws that observation and characterizes it more as an organized letter writing campaign.

Understandable but you know how human nature is; unless you spoon feed some people they won't do anything.

 

[Goofyhobbie]

Update!

The Plaintiff's Attorneys probably have the responsibility of updating the "official" RCI Class Action Lawsuit Website so, I assume it was they who provided an "official update" on January 25th.

A few days after the Fairness Hearing held on November 30, 2009 David C. Berman on behalf of the attorneys for the Plaintiffs submitted a "proposed" Final Order and Judgement to the Court. [Docket # 687-1]

All Judge Sheridan had to do was cross out the word "proposed," initial the change, put in the date and sign it. All of that was done Friday, December 4, 2009 and the Official Court Docket [Case: 2:06-cv-01222-PGS-ES] was updated December 7, 2009.

As of my posting #1058 earlier in this thread the Final Order was not available at the "official website" maintained by the Plaintiff's Attorneys. It has however, been on the Official Website of the United States District Court District of New Jersey since December 7, 2009.

That omission was apparently corrected as of January 25 should you want to see the 12 page pdf file for yourself.

As previously reported here, RCI took the link down from their website shortly after the Judge approved the Settlement; but access is still available by going here: http://www.weeksprogramsettlement.com/

 

[Carolinian]

Missouri AG may act if sees pattern

There is a thread on this in the Members Only forum at Timeshare Forums ( www.timeshareforums.com )

Get your complaints in to the Missouri AG.

 

[AFARR]

RCI lawsuit....is it a Ponzi Scheme now?

I'm in the process of buying a timeshare (working on paperwork now..yes, it's a resale, and as I mentioned in my only other post...I'm happy to use it where it is and when it is)....but as part of the buying, I'm doing research on trades...and found the info on RCI and the lawsuit.

I'm trying to see the difference between what RCI is doing and a Ponzi scheme...I really don't see much.

Let's look at a fairly recent 'Ponzi' scheme....Bernie Madoff.

He took money from people promising them something.
He used that money to do other things than what he promised (make himself money, pay for vacations, buy expensive properties, etc).
He took some of the money coming in from the newest clients and gave it to the older clients to keep them happy.
He never invested it as he was supposed to...and when his clients (and the Feds) got wind of it, he got convicted.

Now, maybe I'm mistaken...but it looks like RCI is doing roughly the same thing.
They take weeks from people who deposit them expecting to be able to exchange them.
They rent the weeks (making themselves money), they use the weeks for employee vacations, but only a little of them are actually used for exchanges.
A few of the weeks are left for exchanges to keep some of the customers from complaining.


Is that what is happening?

AFARR

 

[Goofyhobbie]

AFFAR,

As a newbie your perspective is interesting.

All who take the time to review my posts in this thread will see that I fought as hard as anyone to get a fair settlement from RCI. But, I do not hate RCI or feel that they are currently taking advantage of me personally. As a realist, I will stop doing business with RCI when they no longer meet my personal needs or when the cost of doing business with them is too much.

[In the area of cost they are darn close to driving me away; but, I will stay the course for now because they already have way to many deposits from me and until they are used up there is no benefit to me in leaving.]

There are many RCI members who probably feel that the end result of their experience is not unlike a ponzi scheme; but I assure you that if one takes the time to fully understand how RCI works, operates within the guidelines or rules of RCI, and proactively works the system the result SHOULD BE WHAT A REASONABLE MEMBER OF RCI CAN LIVE WITH.

I have been an RCI member for 25 years and have made in excess of 175 exchanges using their system.

I have never made a deposit that did not result in an exchange of equal or more value than what I deposited.

Did I have to deposit as early as possible? YES!

Did I have to set-up on-going searches? YES!

Did I have to periodically do a search on line to get a good deal? YES!

Did I have to be patient? YES!

Did I have to have reasonable expectations and be flexible? YES!

Until, I am unable to get reasonable exchanges for what I consider a reasonable cost, I will continue to use RCI because I am no longer paying a membership fee directly to RCI [A Wyndham Fairshare Plus Member pays for their RCI membership out of Fairshare Plus Fees paid] and I am in fact still getting good exchanges.

I have to work a little harder to get those great exchanges and have to pay increasingly higher exchange fees (9% increase for 2010); but I am still currently comfortable using RCI.

Waiting to late to make a deposit, searching only 90, 60, or worse 30 days out for a great vacation will not usually get the job done. It is imperative that a user of RCI understand how the exchange system works and it is imperative that they work the system.

 

[Egret1986]

I believe that's it in a nutshell and so well explained, Goofyhobbie

Take the steps necessary by following RCI's rules, work the system to your best advantage, and allow the fees and quality of exchanges determine whether or not RCI has value for you.

I have also been a member of RCI for over 25 years. I have never used another exchange company. You absolutely have to be knowledgeable of the system and work it, work it, work it. I also feel that I have always received like or better exchanges for what I have deposited. I have never lost a deposit because I couldn't find an acceptable exchange.

 

[Carolinian]

The difference is what is availible at RCI between the pre-rental days and the present is stark. One does have to work the system more, that is certain. JLB has a long record of searching SW Florida and can document the vast change in weeks RCI makes availible to exchangers there. While I have not done the systematic searches and printouts he has, my own observations on availibility in Europe are also stark. When I use a summer week at a UK resort (that often has no availibility at all any time of year any size) to search with, I see far less than an Outer Banks blue week would see six or seven years ago. The decrease in availibility has been dramatic. Can you still sometimes make RCI work for you? Yes. Is it a lot harder than it was in the pre-rental days? Absolutely so!

Now RCI rentals, thats another matter. I have picked up a couple of great RCI rentals in Europe for ~$200 each. Of course, I have also seen some off season dog weeks that I would not have traded a blue week (back when I owned one) for offered at amounts in four figures.

 

[Jennie]

Which comes first--the chicken or the egg?

Most of us believe that RCI's rental of deposited weeks to the general public has resulted in far fewer desirable weeks being available to RCI members for exchange.

However, many experienced timeshare owners like myself no longer deposit our prime weeks with RCI. Every week I have purchased over the past 5 years (all resale, many through Ebay auctions) are at resorts where I plan to vacation every year. If I cannot do so once in awhile I rent them through ads on TUG, www.Redweek.com and/or www.myresortnetwork.com
For our Hawaii week I trade it through the San Francisco Exchange Company or Trading Places.

RCI's rental nonsense has caused a lot of us to not deposit good weeks. It has also caused a lot of potential timeshare buyers to rent rather than purchase a week. For years people bought timeshares based upon the dream and promise of being able to easily trade them for desirable weeks each year. Media attention and websites like TUG are spreading the word that the original business model no longer works well, due in large part to corporate greed.

I think the bottom line is that in addition to RCI's rental of deposited weeks to the general public, the huge decline in availability of quality weeks can also be attributed to owners no longer depositing desirable weeks. The Internet has made a huge difference in the way timeshare owners learn about and implement alternative options.

 

[Egret1986]

I wholeheartedly agree with this.

But I think the bottom line is that in addition to RCI's rental of deposited weeks to the general public, the huge decline in availability of quality weeks can also be attributed to owners no longer depositing this type of weeks. The Internet has made a huge difference in the way timeshare owners learn about and implement alternative options.

I have been a member of RCI Weeks since 1984. In the last two years I have not personally deposited any weeks with them. I purchased two timeshares (wks 26 and 27 East Coast beach weeks). Part of the purchase was the spacebanking of the 2009 weeks and not having to pay the 2009 maintenance fees. It was great to get these two free weeks even if they were deposited into RCI. I got two very good weeks in exchange. However, during the search, I never saw anything that would make it worthwhile to make future deposits of weeks that I could use or easily rent.

I am still in RCI because of RCI Points, which currently works very well for me. If and when RCI Points no longer benefits me, then I will no longer be a member of RCI.

 

[Carolinian]

I went to an orientation meeting at a UK timeshare some months ago, and there was a lot of discussion about RCI. Only two of us were there with an exchange. Some of the local owners had used RCI in the past and had been satisfied with it in the past, but now only gave them weeks in the Canary Islands, not good UK weeks anymore, because they had all noticed the dramatic decline in exchange quality.

Which comes first--the chicken or the egg?

Most of us believe that RCI's rental of deposited weeks to the general public has resulted in far fewer desirable weeks being available to RCI members for exchange.

However, many experienced timeshare owners like myself no longer deposit our prime weeks with RCI. Every week I have purchased over the past 5 years (all resale, many through Ebay auctions) are at resorts where I plan to vacation every year. If I cannot do so once in awhile I rent them through ads on TUG, www.Redweek.com and/or www.myresortnetwork.com
For our Hawaii week I trade it through the San Francisco Exchange Company or Trading Places.

RCI's rental nonsense has caused a lot of us to not deposit good weeks. It has also caused a lot of potential timeshare buyers to rent rather than purchase a week. This will lead to more problems in the industry. For years people bought timeshares based upon the dream and promise of being able to trade them for different places each year. Media attention and websites like TUG are spreading the word that the original business model no longer works well, due in large part to corporate greed.

But I think the bottom line is that in addition to RCI's rental of deposited weeks to the general public, the huge decline in availability of quality weeks can also be attributed to owners no longer depositing this type of weeks. The Internet has made a huge difference in the way timeshare owners learn about and implement alternative options.

 

[Dee in California]

It's over as far as the Class Action goes

The appeal was settled out of court. I am not sure yet what all the terms were, other than a fairly small reduction in attorney's fees. I strongly suspect that the appealing parties had no idea about the financial costs of filing an appeal. That must have been a real case of sticker shock!

 

[Jennie]

All of the appealing parties settled for $$$$ which was apparently their main motive for filing the appeals. It was done through mediation.

 

[Dee in California]

Thrilled that they were looking out for the greater good.

 

[brilamar]

Thanks Caroline.
You are appreciated!

 

[ncopeman123]

Selling a product, even a helpful one, using TUG is a violation of TUG Posting Rules and is prohibited. You have done this on five different occasions that I know of; continued violation of the posting rules will lead to you being banned from TUG.

 

[fxstsrdr]

RE: RCI Lawsuit Settlement

Came across this BBS after Google Search.

Just deposited our week and can't exchange for ANYTHING in the Keys - yet many locations available if I want to buy the "extra" vacation. (have 2+ Bdr - Red week - WI Dells).

Had no idea of the lawsuit, settlement, or due date of objections to the latter.

Am I basically SOL (simply outta luck)?

 

[Goofyhobbie]

fxstsrdr,

Welcome to TUG,

You did not identify the timeshare resort, size of Unit, or period of time that you just deposited so it is rather difficult to determine whether or not your particular deposit might have a chance to secure whatever you desire in the Florida Keys.

If what you deposited was 154,000 or less Wyndham Points, you have to consider that those points represent the average value of a 2-BR Unit within the Wyndham Prime season. The points, being generic, probably would not have the trading power of say a 2-BR Unit in prime time at Shell Vacations Club at Little Sweden.

If you own Wyndham points and asked Wyndham for a "visible" deposit of a 2 BR Unit that is equivalent to a 2-BR Red Week at a Wyndham Resort, what Wyndham might have deposited is a random Unit chosen from their then current inventory and that particular Unit may not have the trading power to grab a Unit in the Keys.

Having said that, it has always been a tough "spot search" to grab something in the Florida Keys using just about anything other than the best of the best Gold Crown resort weeks in one's portifolio. RCI has just made it tougher in recent years by skimming the great Florida Key Units put up by other exchangers and putting them in not only the "extra vacations" section of their web site; but, apparently buy selling the time to other companies who then rent them out or auction them off.

If you must have a Florida Keys Unit in exchange for your 2-BR in the Wisconsin Dells, recommed that you request an on-going search for something a six months to two years out. Then cross your fingers and legs in the hopes that you get a hit.

In the meantime, may I suggest that you become a TUG Member and periodically watch the Private Forum we call the "Sightings Board." On the Sightings Board other TUGGERS post Sightings of Florida Key RCI sightings and other great exchange possibilities when they see them using their "fixed week."

For Information On How To Join TUG go to this link and scroll down to How To Join: Website Link To Instructions on How To Join

You have obviously missed out on the "trinkets" that RCI offered to RCI Members; but take my word for it when I say that the "trinkets" were not worth signing up for.

You also missed the opportunity to object to the settlement; but you will get the benefit of the settlement if you were part of the class.

Thanks to the efforts of hundreds of TUGGERS and other RCI Members, we were able to get a slightly improved settlement out of RCI.

 

[fxstsrdr]

RE: RCI Class Action Lawsuit

Thanks for the speedy reply. I was in Afghanistan when all the lawsuit movement took place. Bummer. That said, the TS that we own is a "Float Week" for Jun-Jul or Aug @ Christmas Mountain in the Wisconson Dells. 2 Bedroom, two bath Villa floor plan. Previously exchanged it for Windjammer Landings in St Lucia (sweet) after I returned from Iraq. Also previously exchanged for Morritts in Grand Cayman (awesome). As we "speak" using it in Key Largo @ Anchorage Resort (whew, we feel gipped on this one - definately a dog. Will be using the RV next time).

 

[Mel]

If you log into your RCI account, you can see what week has been assigned to you - when you deposited, your resort had to assign a specific week. While you week floats within that time period, chances are you were not given the best week. I don't know the Wisconsin school schedules, but in general, a June week is not likely to trade as well as July or August, because many families with school-age children can't travel then. The same applies to the late August weeks, because some schools start in August. The best week in that date range is probably a week containing July 4th, since it is a holiday week and costs one less vacation day for many people.

 

[catcher24]

It certainly appears that RCI's corporate heads learned nothing from this lawsuit. I tried to make a points reservation at Wyndham Resort at Fairfield Glade today for a week in September - no availability. Out of curiosity I searched Extra Vacations. Lo and behold, at least 20 units available for the time period I wanted to reserve! So I guess if I want to go I'll have to spend cash rather than use any of my 247,000 points! What a joke - a bad one - RCI is becoming.

 

[laurieb126]

New RCI Member

I am horrified as I read this post. My husband and I became RCI members in October, 2009. We have not yet exchanged a week but I have called and tried to find out if certain weeks are available. All RCI wants is to have me bank my week. Fortunately, my mom warned me not to bank unless I have an available exchange property confirmed.

I haven't been able to read all of the threads. I'm hoping someone can tell me if anything has changed since the lawsuit.

Thanks for any updates.