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

[Carolinian]

To create the illusion that "the possibilities are endless" ...

Most of these have had only one deposit ever, and were for rental only, and very off-season at that.

How I know? Recently I had 2 European confirmation cancellations, resulting in a specialist being assigned to me, who asked me to make a list of all acceptable substitutions, so theoretically I'd have first crack.

I painstaking went thru their entire directory and made a list of lots of those. She looked up each of their histories and related what I said above, including details on *when* the rental was for - at some point I stopped even reading them off to her because an exchange would never happen. Even a rental for a specific week in shoulder season would probably never happen.

I agree it's weird, because that's a lot of work for their data entry folks for one measly rental - unless they're building it up for future rentals thru all their subsets, which is probably the answer to your question.

They appear to be gradually migrating their whole system from exchanges over to rentals. This is just one more step.

 

[rickandcindy23]

Educating owners at all independent resorts (those not with a large company like Hilton or Wyndham) of RCI's rental practices is probably the best way to win against RCI. If no one at our resort deposits again, we have hurt RCI in a big way, but people aren't going to abandon RCI in large numbers like that. But owners need to decide individually whether RCI is offering the same value they had five years ago, or even one year ago.

 

[Laurie]

I await to see what will happen when I try for an exchange holiday as to what is offered. I am not decrying the new entries, they may be very good options, but they are not timeshare.

Carolinian is right, most of these are listed for their rental business only. You will never be offered these on exchange. They won't even pluck one from their rental pool inventory (already showing up as a rental) to compensate a member for a cancelled exchange confirmation - I know this for a fact, because I requested one substitution from that pool, and was denied. Yet they're offering some of my primetime deposits as rentals. It's a 1-way street.

 

[crazyhorse]

Laurie

quote:Carolinian is right, most of these are listed for their rental business only. You will never be offered these on exchange. They won't even pluck one from their rental pool inventory (already showing up as a rental) to compensate a member for a cancelled exchange confirmation - I know this for a fact, because I requested one substitution from that pool, and was denied. Yet they're offering some of my primetime deposits as rentals. It's a 1-way street.

I do not know at present which of the new "resorts" are intended for exchange and which for rental. Many of these new "resorts" I was referring to I wouldn`t want to be offered as an exchange! They are not timeshare and are not of good enough quality.

As might be expected, they are not showing up in the Extra Vacation section (i.e. Rental Pool). The resorts in the Extra Vacation section are generally of bona-fide timeshare type.

 

[Laurie]

I do not know at present which of the new "resorts" are intended for exchange and which for rental. Many of these new "resorts" I was referring to I wouldn`t want to be offered as an exchange! They are not timeshare and are not of good enough quality.

As might be expected, they are not showing up in the Extra Vacation section (i.e. Rental Pool). The resorts in the Extra Vacation section are generally of bona-fide timeshare type.

Being offered something as an exchange doesn't mean you'd have to accept it. Different people look for different attributes - I'm often more interested in location than "quality" or amenities. I would have accepted several of their listed cottages and/or hotels in a heartbeat.

I want more choice in exchanges, not less choice. If they were opening up exchange inventory to more choices which are equivalent to what they're moving out of exchange into rental, I'd have less problem w/their rental program.

By the way, you can consistently find some non-timeshares in their rental program - eg Paris hotels - but their rental prices are high compared to what you can find on the open rental market.

 

[crazyhorse]

Being offered something as an exchange doesn't mean you'd have to accept it. Different people look for different attributes - I'm often more interested in location than "quality" or amenities. I would have accepted several of their listed cottages and/or hotels in a heartbeat.

I want more choice in exchanges, not less choice. If they were opening up exchange inventory to more choices which are equivalent to what they're moving out of exchange into rental, I'd have less problem w/their rental program.

By the way, you can consistently find some non-timeshares in their rental program - eg Paris hotels - but their rental prices are high compared to what you can find on the open rental market.

1.I agree that of course you do not have to accept an exchange offered. I do it all the time.

2.Location is important too. If you want to holiday in England, the apparant (not valid) tenfold increase in that country`s inventory will help. However although the new inventory does include some desireable units, there is no certainty that when it comes down to it, that these will be offered for exchange.

3.Some of these units are available to rent on other property sites-there are many such sites in publications and on-line. I have a relative who owns an apartment in a holiday area and rents it out, either through an advertising agency or by word of mouth. It is on a main street facing the sea. It provides an alternative to say a traditional complex with a pool, restaurant etc, but I don`t think it should be included in a list originally comprising only timeshares. So, I`m not sure why RCI has added this sort of property to its inventory.

4. Why did RCI make such a significant change to its inventory without informing its membership? If it was to our benefit they would have given publicity to it (wouldn`t they?). Do I smell a rat?

 

[lgreenspan]

Anyone else notice something missing from RCI website?

Did you notice how quickly anything related to the class action was removed from the website. No updates posted of any settlement. Shouldnt the settlement agreements being posted on the website been one of the agreements of the settlement?

 

[Goofyhobbie]

RCI was required by the Settlement Agreement to provide a link to the "official" website until the effective date of the settlement.

Although the link no longer exists at RCI's website the site is still available through the following link: http://www.weeksprogramsettlement.com/

 

[Carolinian]

Hiding their scams shows the lack of honesty and integrity by RCI in this business. That is one of the reasons that I urge all Tuggers to send a link to this thread to their resort management and to all HOA board members. Also see if you can write an article or letter to the editor to your resort newsletter. Be sure to mention the alternatives. Urge the resort to dual affiliate with II. Let member know that they can use the independents and how to find them.

 

[crazyhorse]

The Little Corner Shop

George: How are we going to keep the customer`s sticky fingers off the stuff we want to have?

Tony: Well we could shut the shop.

But that would upset our shareholders, and besides I`d lose my bonus.

Well how about we put some stuff out of reach, or put it on the bottom shelf where they don`t tend to look?

That`s a good idea, but I`ve got a better one. We could stuff the shelves with lots of other gear, so they won`t be able to tell the peas from the beans.

Great! I can still see the gold and silver packaging though on the good stuff. We`ll have to do something about that.

No we`ll leave that for now. We all have to make some sacrifices.

Isn`t there a risk we`ll lose customers to our competitors?

I thought that was the idea. No, any way, how do we know that the other big chains aren`t thinking along the same lines?

What about the little corner shops?

Don`t worry about them, they haven`t got anything to sell

But.....

 

[Tonii]

This is the first time I have heard about the lawsuit. I am a member of RCI weeks but was never notified and just chanced to come upon it when visiting the tug web (of which I am also a member.) Thank you for the notice on your web site and kudos to Jennie for her comments an update. Betty

 

[dukeoakley24]

so do we get anything in the settlement as weeks members? I'm new to hearing baout this as well.

 

[TUGBrian]

so do we get anything in the settlement as weeks members? I'm new to hearing baout this as well.

for those of you looking for an even cheaper alternative...why not put your interval up on TUG.

tis free, you arent obligated to make an exchange if you dont want to...nor do you lose your week and can do anything you like with it at any time.

TUG saved more than a dozen TUGGERS last month alone from their usual exchange fees!

 

[TUGBrian]

for those of you looking for an even cheaper alternative...why not put your interval up on TUG.

tis free, you arent obligated to make an exchange if you dont want to...nor do you lose your week and can do anything you like with it at any time.

TUG saved more than a dozen TUGGERS last month alone from their usual exchange fees!

15 new exchanges posted in the last 24 hours...looks like its working =)

MOREEEE.....I WANT MORE!!!

 

[EagleID]

An Excellent Idea - Any Response?

With the provisions of this settlement, would one of you very savvy Tug members, please summarize how to maximize our trading power in terms of when to deposit and when to search, put in ongoing request or look for "last-minute" exchanges? I am trying to glean from the various posts how to make the most of this settlement, and getting a little confused.

I suggest that this information be posted on one of the "members only" forums.

Thanks,

I think that the quoted post got lost in the fray.

Has anyone posted a Strategy Going Forward anywhere on TUG? As a Floating Weeks resort member of RCI, I too got a bit lost as to my best strategy with RCI post-settlement.

I appreciate that in the opinion of many, the best strategy may well be to leave RCI, but that's truly not the current question and has already been discussed ad infinitum.

 

[Jennie]

Has anyone posted a Strategy Going Forward anywhere on TUG? .

Due in part to the efforts of the "Objectors," and all the class members who filed objections, some last minute "improvemnents" occurred in the settlement. There are a few unresolved questions re: interpreting the full and final terms of the settlement. We are in the process of sorting it all out. A detailed summary will be posted soon, along with concrete suggestions about strategies for maximizing the chance of obtaining desired/deserved exchanges.

Some of the negotiated changes will not take place immediately. But everything should be phased in within the coming year.

Here's a mini summary of what I think the settlement requires.

All weeks deposited more than 10 months in advance of the check-in date will remain in the exchange pool/spacebank for 31 days before they can be removed and rented to the public.

Weeks removed and made available for rent to non-members will simultaneoulsy remain available for exchange by RCI members who have sufficient trading power.

Weeks deposited less than 10 months in advance of the check-in date will be matched up with any on-going searches that have sufficient trade power (as determined by the fox guarding the hen house) before they can be removed for rental or "other purposes."

On an annual basis, the number of weeks removed for rental and other purposes cannot exceed the number of weeks deposited by RCI from other sources as replacements. (This provision does not apply to weeks removed within 60 days of the check-in ("start") date). The replacement weeks are supposed to be of the same quality e.g a red week for a red week, blue for blue, etc... But we all know how that goes, especially since RCI is the sole arbiter of the rating of the weeks coming in and going out.

While there seems to be a lot of "wiggle room" for RCI to continue to engage in unfair practices, it is hoped that the real threat of continued loss of members, and the dwindling deposits of high quality weeks by present members who now use or rent out their own weeks, will lead RCI to conclude that it is in their best financial interest to focus on providing their members with the level of service they expect and deserve. In my opinion, this would require RCI to exceed the terms of the class action settlement.

More later.

 

[crazyhorse]

Jennie:

quote:

On an annual basis, the number of weeks removed for rental and other purposes cannot exceed the number of weeks deposited by RCI from other sources as replacements. (This provision does not apply to weeks removed within 60 days of the check-in ("start") date). The replacement weeks are supposed to be of the same quality e.g a red week for a red week, blue for blue, etc... But we all know how that goes, especially since RCI is the sole arbiter of the rating of the weeks coming in and going out.

The recent increase in the number of resorts worldwide from "over 4000" to about 5700 implies that RCI may have already deposited the required number of weeks in anticipation of the deposited weeks they wish to remove. I don`t know for certain of course until I wish to make an exchange.

 

[Carolinian]

On an annual basis, the number of weeks removed for rental and other purposes cannot exceed the number of weeks deposited by RCI from other sources as replacements. (This provision does not apply to weeks removed within 60 days of the check-in ("start") date). The replacement weeks are supposed to be of the same quality e.g a red week for a red week, blue for blue, etc... But we all know how that goes, especially since RCI is the sole arbiter of the rating of the weeks coming in and going out.

While there seems to be a lot of "wiggle room" for RCI to continue to engage in unfair practices, it is hoped that the real threat of continued loss of members, and the dwindling deposits of high quality weeks by present members who now use or rent out their own weeks, will lead RCI to conclude that it is in their best financial interest to focus on providing their members with the level of service they expect and deserve. In my opinion, this would require RCI to exceed the terms of the class action settlement.

More later.

I feel certain we will see them renting red Allen House, red Maui, red summer beach, red Sanibel, etc. and replacing it with red Canary Islands, red Orlando, red Branson, red Massanutten, etc. They will sit back, if challenged, and say ''gee they are all red weeks!''

 

[Goofyhobbie]

When Is The Effective Date Of The Settlement?

so do we get anything in the settlement as weeks members? I'm new to hearing baout this as well.

On November 30, 2009, the Honorable Peter G. Sheridan held a "FINAL" hearing and approved the proposed "Weeks" Settlement Agreement.

The Court formally approved the "revised" proposed settlement by signing on December 4th the 687th Document of the Docket.

Document 687 was a proposed Final Order and Judgement submitted by David C. Berman (Co-Lead Counsel for the Plaintiffs.) On December 7th that signed document became Document number 692 and was made part of the Docket on December 7, 2009.

As of today December 19, 2009 the Final Order and Judgement has not been posted at http://www.weeksprogramsettlement.com/courtdocs.htm.

If you filed a claim for one of the offered benefits, RCI will not start to process the claim forms and make them available until the so-called Effective Date of the settlement is determined. Note: In the Settlement Agreement the Effective Date is defined as the date (5) five calendar days from the date that an Approval Order becomes a Final Order.

The official web site for information regarding the proposed settlement is still www.weeksprogramsettlement.com. A request to get the web site updated was sent to the Co-lead Counsel for the Plaintiffs on December 12th and again today December 19th by yours truly.

The official website is expected to be updated shortly after the Effective Date with the time table for the distribution of the claim benefits and other related matters.

For anyone interested, you can check back at the official website at the end of January for the exact date.

If in the mean time you have any question about whether your claim form was received and accepted, you should write the court appointed Claim Administrator. You should keep a copy of your letter for your records. The address is:

Rust Consulting, Inc.
PO Box 1966
Faribault, MN 55021-6162.

 

[Goofyhobbie]

Update

There were specific significant changes that were undoubtedly forced by the Objection Effort. Had the effort not taken place with a major push by TUG Members we would have received far less from the proposed Settlement as it existed on August 12, 2009.

A special thanks goes out to Brian Rogers who set up the special website devoted to this effort and worked closely with fellow TUG Members to put out accurate information at http://rciclassactionlawsuit.com/. Kudos also to "Denise" the Exchanging Forum Moderator who worked steadily and patiently behind the scenes to promote accuracy and a smooth flow of communicaton.

The wrong that the Plaintiffs sought to redress was RCI's alleged behavior in removing from the Spacebank® Vacation Time deposited by "Weeks" Members (especially weeks that are considered high demand deposits) and renting them without replenishing the Spacebank® with comparable vacation time to the detriment of "Weeks" members.

The Plaintiffs attorneys have said the lawsuit was

...not about RCI's rental program in the abstract or about the rates at which RCI subsequently rents the inventory.

Also, according to the Plaintiffs attorneys, the lawsuit was

...not aimed at ensuring each Weeks Member an equivalent opportunity to exchange irrespective of the contractual limitations to which he or she agreed in purchasing a timeshare from a third party or irrespective of the normal operation of the Weeks Program Terms and Conditions.

In short, the Plaintiffs attorneys

...sought to ensure that RCI's activities in the exchange system relative to its rental program are fair, and that the fundamental purposes of the Weeks Program as RCI advertised it ---exclusive access to Weeks Member deposits and the opportunity for a properly submitted exchange request to obtain a comparable exchange ---were met.

The proposed settlement as presented to the Court in June, 2009 and modified as of August 12, 2009 was supposed to have achieved the relief sought through several fundamental changes to RCI's business practices. But, the modified proposed settlement was found to be unfair by hundreds of Objectors.

Because of the in-person efforts of a few objectors in Court this past June, we the "Class," were given a second chance to get a better settlement.

Those same Objectors, primarily our own "Jennie," (in person) Susan Collins, (in person) and Shep Altshuler of TSToday (by teleconference) met with RCI Executives and other principals to discuss changes in September.

Their tireless efforts did not by themselves get a better settlement, but, when they brought their effort to TUG and encouraged discussion and an outright objection effort we together eventually achieved some significant changes to the proposed settlement and ended up with a more fair (although not perfect outcome.)

To all those who came to TUG and spread the word to get Objections to the Court - Thank you for your support!

The Settlement in its entirety is supposed to be posted at www.weeksprogramsettlement.com.

Personally, I have been away from my office computer for the past month. That, in part, is why I am just now jumping in with the post that is provided below. Hopefully the post below will provide the follow-up information that will clearly point out the changes to the proposed Settlement that came about in late November just days before the Fairness Hearing on November 30th.

 

[Goofyhobbie]

The Extent Of The Changes

Below, where you see the words in RED you are viewing the quoted text from the proposed settlement as it existed on August 12, 2009. [Source: The 280 page pdf original settlement document and the First and Second Stipulation and Order Modifying the Settlement Agreement posted at the official web site.] The words in RED that are italicized and underlined are the previous words that have been changed. The changes shown in GREEN are the words inserted or changed as of the signing of the Final Order and Judgment by Judge Sheridan on December 4th.

Those words in Green were in large part the result of the efforts of those who engaged Susan Collins to represent them and/or took the time to write their own Objection letter and send it to the Court. Your active participation in the process made a difference.

1) Pursuant to Section II.A.2: Balancing of RCI Deposits and Rented Inventory.

RCI represents that, on a calendar year basis and by Trading Power Segment, the aggregate quantity of Vacation Time that is deposited by Members and is rented or used for any other purpose by RCI shall be less than the aggregate quantity of Inventory and Alternative Inventory that RCI or others deposit or contribute, or that RCI otherwise permits to be contributed for Exchange, except that this representation excludes (a) the quantity of Vacation Time that Members deposit to acquire Alternative Inventory (as measured by the aggregate Trading Power of such Vacation Time), and (b) Vacation Time that is not the subject of a Confirmation ninety sixty days prior to the start date of that Vacation Time.

According to the Plaintiffs attorney

...this "balancing" provision addresses the tension between the alleged improper skimming of quality deposits on the one hand with RCI's contractual right to remove deposits on the other. It also addresses Plaintiffs' allegation that RCI was not replenishing exchange inventory with comparable vacation time.

(2) Pursuant to Section II.A.3: Disclosure of Weeks Program Activity.

RCI agrees that, for the calendar year ending December 31, 2008 and for at least two three calendar years thereafter, RCI shall make information available to all Members regarding activity in the RCI Weeks Exchange Program (excluding activity by Members serviced by RCI Japan Co. Ltd. for the calendar year ending December 31, 2008) , by Trading Power Segment, during the prior calendar year. Such disclosure shall be in addition to any statutory disclosures RCI may or may not provide. RCI may determine the timing, frequency, and form of such disclosures, provided that the information disclosed by RCI shall be made available within six months after the Effective Date and shall include the following: (1) the total number of units of Inventory deposited more than ninety sixty days prior to the starting date of the deposited Vacation Time, showing the number of such units deposited by each of Members, RCI, or others; (2) the number of Exchanges in the RCI Weeks Exchange Program completed more than ninety sixty days prior to the starting date of the deposited Vacation Time, including the total number of Exchanges involving Members' Vacation Time exchanged for other Members' Vacation Time, the total number of Exchanges involving Members' Vacation Time exchanged for Inventory or Alternative Inventory deposited by RCI, and the total number of Exchanges involving Members' Vacation Time exchanged for Inventory or Alternative Inventory deposited by others; (3) the total number of units of Inventory that were not the subject of an Exchange; and (4) the total number of units of Inventory that were deposited by Members and rented or used for any other purpose by RCI more than ninety (90) sixty (60) days in advance of the starting date of the deposited Vacation Time.

Pursuant to Section II.C: Priority For Weeks Program Exchange Fulfillment.

1) Commencing no later than one year after the Effective Date and continuing for a period of two (2) three years from the date on which the benefit provided in this Section II.C is first made available by RCI or August 31, 2012, whichever is earlier, each Deposit of Vacation Time for the purpose of an Exchange right, made more than one year ten (10) months in advance of the starting date of such Vacation Time, shall be available exclusively for Exchange by Members and eligible members of the RCI Points exchange program (subject to balancing as required by Section II.A(2) above) for a period of thirty-one (31) days from the date of Deposit, including the initial Deposit day, and shall not be available for any other purpose, including, without limitation, Rental.

2) It should be noted that in addition to the above exclusivity period, RCI agreed as follows:

...With respect to Deposits made less than one year 10 months in advance of the starting date of the deposited Vacation Time, RCI will make available that Vacation Time to satisfy an active and pending Exchange Request, based on the Trading Power criteria set forth in Section IX.A…

[Emphasis Added: This means sufficient trading power as described in Section IX.A.(2) of the original proposed Settlement [To get an idea of how RCI determines Trading Power see the originally proposed settlement pdf file (page 29 of 280) at http://www.weeksprogramsettlement.com.

3) If no such Exchange Request exists upon the Deposit date, RCI will make the deposited Vacation Time available for both Exchange and Rental, should RCI wish to offer the Vacation Time for Rental. Notwithstanding the foregoing in this Section II.C:

1) RCI may exchange Vacation Time with other exchange programs for the purpose of balancing exchange systems as described in subsection II.A.(2), above, or for the purpose of enhancing Member satisfaction;

2) RCI may, at any time, rent or otherwise dispose of any Vacation Time that (a) is acquired by RCI and is in excess of the amount of Vacation Time that RCI deposits or has deposited, if any, for the purpose of balancing Inventory available to Members as set forth in Section II.A.2 of this Settlement Agreement or (b) is not the subject of a Confirmation ninety (90) sixty (60) days prior to the starting date of that Vacation Time;

3) Although not included within the definition of a Member, RCI may, in its sole discretion, permit an Affiliated Resort to make a Deposit and perform an Exchange and provide the Deposit or resulting Confirmation to a Member subject to the terms of this Section II.C and the Terms and Conditions; and

4) To the extent there is a conflict between the provisions of this Section II.C and the terms of any agreement between RCI and Affiliated Resorts that may limit or otherwise relate to the availability of a Deposit, including but not limited to limitations on the ability of a Member to Exchange for Vacation Time that is located within a certain radius of the Member's Deposit, the terms of RCI's agreement with the Affiliated Resort shall control.

Pursuant to Section II.I Time Limitation.

Except as otherwise provided herein, and without altering any shorter or longer period that is specified herein. RCI shall not be required to offer or provide any of the Class Benefits identified in this Settlement Agreement for more than two three years from the Effective Date.

The above represents the extent of the Changes.

 

[jerseygirl]

Commencing no later than one year after the Effective Date and continuing for a period of two (2) three years from the date on which the benefit provided in this Section II.C is first made available by RCI or August 31, 2012, whichever is earlier

Does this mean:

If RCI has one year to implement the necessary changes, they will go into effect in approximately December 2010 .... then stop on August 31, 2012 .... so 20 months of concessions?

 

[SBK]

Did not file claim???

We did not file a claim. I know, I know....

Do we have any standing or rights?

 

[Goofyhobbie]

Commencing no later than one year after the Effective Date and continuing for a period of two (2) three years from the date on which the benefit provided in this Section II.C is first made available by RCI or August 31, 2012, whichever is earlier,

Does this mean:

jerseygirl asked: If RCI has one year to implement the necessary changes, they will go into effect in approximately December 2010 .... then stop on August 31, 2012 .... so 20 months of concessions?

Excellet point. At best we can anticipate 33 months of Settlement mandated benefit and at worse 21 months depending on both the Effective Date and when RCI implements the provisions of the Settlement.

 

[Goofyhobbie]

We did not file a claim. I know, I know....

Do we have any standing or rights?

SBK, the basic benefits of the final settlement are available to all "Weeks" members. If you did not specificily exclude yourself from the Settlement and you are a current member of RCI, you get the benefit of the changes to RCI's operation of the Weeks Exchange Program just like the rest of us.

Like you, I did not file a claim for the ridiculous individual benefit offered by RCI. I chose not to file on principle. You did not miss much by not filing a claim.

Hopefully you were among those who objected to the Settlement; but whether you did or did not object makes no difference if you are a "Weeks" Member you will reap the benefits of the changes in RCI's operation.