Why must I pay RCI for Extra Vacations they can't deliver?

In addition to making depostis and exchanges, I've been buying Extra Vacations (or equivalent) from RCI for the past couple of years.

Last January, I bought 3 Extra Vacation weeks from RCI for use in November at a cost of $1,600.

I now see from RCI's web site (Your Travel Plans) that one of my EV weeks in S.E. Florida has disappeared. Speaking with an RCI rep about it, I have learned that I will be credited with only part of my cost. I expect that once RCI catches up all the resorts, a second week will also be disappearing - also at my loss no doubt.

The fairness and ethics of RCI's current policy leaves me very disappointed. Let's look at it from a slightly different perspective, as follows.

Let's say tickets for a Rolling Stones concert scheduled for a 50,000 seat stadium (at $100 ticket) are sold through Ticketmaster and the Stones don't show up. Is Ticketmaster then entitled to keep a half of the $5 million because from a legal perspective it's customers' responsibility to know they were actually buying 'tickets', and not 'a performance'?

Similarly, I bought a week at a resort from RCI in good faith - I did not realize that I was buying a lottery ticket (a.k.a. Exchange Certificate) that 'might' get me a week at the agreed-upon resort.

The agent I spoke to could not speak to the fairness of the policy of course so I would appreciate an opinion of the fairness of this policy from RCI management. I hope, once they think about it, that they can be convinced to do the right and ethical thing, not just what is 'legal'.

Thank you.

X-ring said:

In addition to making depostis and exchanges, I've been buying Extra Vacations (or equivalent) from RCI for the past couple of years.

Last January, I bought 3 Extra Vacation weeks from RCI for use in November at a cost of $1,600.

I now see from RCI's web site (Your Travel Plans) that one of my EV weeks in S.E. Florida has disappeared. Speaking with an RCI rep about it, I have learned that I will be credited with only part of my cost. I expect that once RCI catches up all the resorts, a second week will also be disappearing - also at my loss no doubt.

The fairness and ethics of RCI's current policy leaves me very disappointed. Let's look at it from a slightly different perspective, as follows.

Let's say tickets for a Rolling Stones concert scheduled for a 50,000 seat stadium (at $100 ticket) are sold through Ticketmaster and the Stones don't show up. Is Ticketmaster then entitled to keep a half of the $5 million because from a legal perspective it's customers' responsibility to know they were actually buying 'tickets', and not 'a performance'?

Similarly, I bought a week at a resort from RCI in good faith - I did not realize that I was buying a lottery ticket (a.k.a. Exchange Certificate) .

The agent I spoke to could not speak to the fairness of the policy of course so I would appreciate an opinion of the fairness of this policy from RCI management. I hope, once they think about it, that they can be convinced to do the right and ethical thing, not just what is 'legal'.

Thank you.

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I am also interested in RCI"s response. RCI's membership policy says that when someone deposits a week with RCI, ownership of the week is transferred to RCI. That means that RCI assumes the both the risks and the obligations of ownership.

When I go to a store and buy something that they own, if they can't deliver the item I purchased the store always grants a full refund.

Why should it be any different with RCI?

I am also interested in RCI"s response. RCI's membership policy says that when someone deposits a week with RCI, ownership of the week is transferred to RCI.

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I started a separate thread on RCI's policy re Extra Vacations from the one about exchanges as EV may be different issues since we don't who has made the deposit, or even if a 'deposit' has been made.

My understanding is that RCI also markets surplus inventory on behalf of resorts. So if Resort A asks RCI to try to sell week X for them and RCI sells me the week in January but Resort A cannot deliver come December, the issue should be between the resort and RCI; not RCI and me.

To avoid confusing the issues, I am hoping that this thread can be kept to the treatment of Extra Vacations cancelled by the resort or RCI only.

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edited on Oct 31 to include the following from RCI's web site

from https://www.rci.com/RCIW/RCIW_index?body=RCIW_BVConfirmWeek&exIndex=0&operationType=holdtoconfirm and
http://www.rci.com/RCIW/RCIW_index?body=RCIW_WeeksFAQ2#4

Cancellation Policy:

Extra Vacation cancellation policy is as follows:

If you confirm this unit and decide to cancel, the following table indicates the cancellation charges you will incur based on when you cancel.

Cancellation Fee:

Extra Vacations and Last Call Cancellation Policy

You must contact an RCI Guide to cancel a vacation.

If you cancel within 24 hours of confirmation and if the start date of the reservation is 15 days or greater than the confirmation date - No cancellation fee

100% Cancel fee if cancelled 14 days or less before start date

50% Cancel fee if cancelled 15 to 60 days before start date

30% Cancel fee if cancelled 61 days or greater before start date

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There is no disclaimer of responsibility for natural disasters as there is for exchanges.

I also checked the RCI Weeks Disclosure Guide 2004-2005 at https://www.rci.com/RCIW/CDA/Functional/Legals/DisclosureGuide2004RCIWeeksFinal.pdf There is no mention of Extra Vacations in this document.

In my capacity as a BBS administrator....

I have deleted several posts from this thread. Questions to RCI belong in this Ask RCI forum. Discussion of issues raised here belongs in the Exchanging forum.

Those wishing to discuss the issue raised here may do so in this linked thread or in a separate thread on another forum.

X-Ring,

I recently responded to the issue of RCI's natural disaster cancellation policy in this thread. Our standard cancellation policy is applied to both Extra Vacations and one-for-one exchanges. In both cases, members have the option to purchase the vacation protection product offered by BerkelyCare. RCI simply cannot give up revenue based on natural disasters and stay strong as a business.

RCI does not take on ownership of the timeshare weeks deposited into its program. However, it does receive the exclusive right to use the specific weeks deposited.

6.(c) By depositing Vacation Ownership with RCI, you relinquish all rights to use that Vacation Ownership and agree that such deposited Vacation Ownership may be used by RCI to conduct exchanges, inspection visits, promotions, rentals and for other purposes at RCI’s discretion.

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I also tried to get some clarity on this Extra Vacation issue. It seems very clear now though that the answer is RCI, unlike any other business, needs to keep your money even if they can't deliver what you thought you bought (or something comparable.)

I believe no airline or hotel or vacation company has such a finely-tuned rationale allowing them justify keeping all your cash. RCI's creed: If you give us some money it is ours to put on our bottom line, no matter what you might think.

Guess who will never, ever, ever buy any vacation product from RCI again?

But Canadians cannot buy the insurance!

Madge said:

X-Ring,

I recently responded to the issue of RCI's natural disaster cancellation policy in this thread. Our standard cancellation policy is applied to both Extra Vacations and one-for-one exchanges. In both cases, members have the option to purchase the vacation protection product offered by BerkelyCare. RCI simply cannot give up revenue based on natural disasters and stay strong as a business.

RCI does not take on ownership of the timeshare weeks deposited into its program. However, it does receive the exclusive right to use the specific weeks deposited.

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Madge, what are my options as a Canadian? I can't but the insurance so how do I protect myself??

Eh?

Further to the last post on this, when I bought my last Extra Vacation, the RCI person on line identified himself as being in a New Brunswick call centre; he was very personable. But as he would have known I was Canadian, and he was himself Canadian, so no wonder the topic of insurance would not have come up in this recorded-for-quality-assurance-purposes call.

Let's review: you pay RCI for a week of rental; they don't deliver; they keep the money. You have no option but to stay far away from the belief they provide what they sell. I guess.

merc,

Since the vacation protection protection product offered by BerkelyCare is only available to U.S. citizens, you may want to check out insurers in Canada. I found one online called Travel Underwriters. Vacation Guard has a timeshare product that covers Canadians traveling to a location in the u.S.

Madge, I am sure you are a very much superiour employee of RCI. Please do not imagine I think otherwise. Yet, I have written and written, as have others, about this draconian policy on Extra Vacations. (If anyone wants to search Extra Vacations or Merc, you can access these threads.) No one will blame you for the mercenary position RCI has taken, but please help change this "policy". As the dear Red Skelton always said " And may God Bless."

Madge,

I am reading this thread in disbelief! I recently booked to Extra Vacations for my parents. Are you saying that if something were to happen to these resorts and the weeks had to be canceled it would be my tough luck?

Scott

In case Madge doesn't reply, the answer is YES!! Take out insurance if you have any doubts.

Leturno said:

Madge,

I am reading this thread in disbelief! I recently booked to Extra Vacations for my parents. Are you saying that if something were to happen to these resorts and the weeks had to be canceled it would be my tough luck?

Scott

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JeffV said:

In case Madge doesn't reply, the answer is YES!! Take out insurance if you have any doubts.

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Do Cendent's other hospitality companies operate with such a policy?

Scott

RCI in violation of Uniform Residential Landlord and Tenant act?

Madge,

Has RCI considered that it may be in violation of the Uniform Residential Landlord and Tenant Act? If you reconsider your policy, you will look like heroes to your members and avoid potential lawsuits and very negative publicity.

The Uniform Residential Landlord and Tenant Act has been adopted by at least the following states: Alaska, Arizona, Florida, Hawaii, Iowa, Kansas,
Kentucky, Montana, Nebraska, New Mexico, Oregon, Rhode Island, South
Carolina, Tennessee, Virginia

Here is the key Section in this act that applies to this situation:

Section 4.102 Failure to Deliver Possession

(a) If the landlord fails to deliver possession of the dwelling unit
to the tenant as provided in Section 2.103, rent abates until possession
is delivered and the tenant may
(1) terminate the rental agreement upon at least 5 days written
notice to the landlord and termination the landlord shall return all
prepaid rent and security; or
(2) demand performance of the rental agreement by the landlord
and, if the tenant elects, maintain an action for possession of the
dwelling unit against the landlord or any person wrongfully in
possession and recover the actual damages sustained by him.

(b) If a person's failure to deliver possession is willful and not
in good faith, an aggrieved person may recover from that person an
amount not more than [3] months' periodic rent or [threefold] the actual
damages sustained, whichever is greater, and reasonable attorney's fees.

BocaBum99,

You are asking if RCI is engaged in unlawful activity. To my knowledge they are certainly not. However, I am not an attorney and hence not qualified to interpret the law.

This question is outside the scope of my personal qualifications, as well as RCI's purposes in providing my presence in this forum. Please direct specific legal inquiries to Cendant's Legal Department at:

Cendant
Attn: RCI Legal Dept.
7 Sylvan Way
Parsippany, NJ 07054

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