The RCI High Court Action is underway, the Financial Times published a story by Jane Croft outlining the history over the case. (see link below).
As we previously stated this action is being conducted on behalf of Four RCI members by Edwin Coe LLP, another 483 members are also part of this case. They alledge that RCI has skimmed off weeks from the exchange inventory, thus depriving members the exchanges they had been promised when signing up to the RCI exchange system.
RCI which is part of the American Wyndham Worldwide hospitality company, has since it was founded in 1974 been the major timeshare exchange system. It allows timeshare owners to bank and exchange their resorts for others worldwide, thus increasing the number of locations owners can choose from.
We stated in a previous article http://insidetimeshare.com/rci-action-update/ this case follows one taken in the U.S. The members stated that they were unable to get the exchanges they requested or were promised when they joined the exchange group, they alledge that RCI had been renting out the weeks in the inventory to non members for profit. Members pay a fee to join and a yearly membership fee, they also pay for the exchanges, there is also a system of bonus weeks.
Bonus weeks are offered to members in order fill unused weeks in the inventory, these weeks are those that have not been booked, so are available to be used. Typically they will be offered as last minute deals, not unlike those offered by high street travel agents in order to clear remaining inventory. This in itself is good as it does allow the resorts to have a flow of guests as well as giving owners extra holidays.
The QC representing RCI Charles Graham, stated in his opening that the allegations of skimming were unfounded, because of the advantages of the “open exchange system”. RCI in a written statement stated that they were entitled to use members timeshares as they saw fit. Apparently this is due to a clause in the contract referred to as “ Permitted use”. Well I am not sure what this all means, so we will have to wait for the legal eagles to conclude their arguments.
If the members succeed in this case it may just open up the flood gate to more litigation, again this is another example of an industry being brought into disrepute. We have said it before, they only have themselves to blame, rather than look after the owners/members they seek only profit. We are not saying that making a profit is wrong, but at the expense of their own clients it does seem to be a tad unethical.
Inside Timeshare will keep you up to date as the news comes in, so watch this space.
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