This morning I received this email from TimeSharing Today:
RCI (mis)representations
While we await the judge's opinion following the June 16th Fairness Hearing, other relevant information has come to light.
Susan Collins pointed out that RCI Guides continually misrepresent the fact that RCI rents weeks deposited by owners in its Spacebank. She also advises that the RCI contract with its members includes a provision that allows RCI to use deposited weeks to "satisify Exchange Requests, for inspection visits, promotions, rental, sale, marketing and for other purposes at RCI's discretion, including use in other exchange or accommodation programs." TimeSharing Today is concerned that most RCI members may not be aware of this clause, which is located in paragraph 23.0 of the Terms and Conditions published in the 2008 RCI Points and similar wording also appears in the Weeks catalogs. The 2009 RCI directories have been made considerably smaller and no longer contain the Terms and Conditions. Were you aware of this clause and how do you interpret it?
Further, after the hearing, Shep Altshuler sent a fax to the judge that dealt with misleading statements. Here is an excerpt of that fax:
Dear Judge Sheridan:
I want to express my appreciation for the opportunity to appear at the June 16th Fairness Hearing. After listening to the attorneys, to Susan Collins and to Carolyn Lindholm, I find it necessary to offer additional information for your consideration. During her appearance, Ms. Collins made specific reference to RCI's Guides making misleading statements about RCI's utilizing deposited weeks for rentals. Coincidentally, at 9 AM on June 17, I was called by Nancy, an RCI telemarketing representative who works out of their Indianapolis office. She
wanted to review my interest in depositing a week or in looking for an exchange. I told her that I have not yet made plans for 2009. I then asked her if RCI rents Spacebank deposited weeks. Her reply, "No, we only do trades. We do not rent those weeks."
This certainly validated Ms. Collins' assertion about misleading representations. Later in the afternoon, I decided to test those waters again. This time, I called RCI's toll free number. I was connected to Tara. I said that I was interested in seeing if there were any dates available for exchange in 2009 at resort ID 0342, Gurney's Inn, Montauk, NY. After
doing a search, she said, "There is nothing available for an exchange there in 2009, but I can get you a rental in late December for $770." I then asked her if RCI was using Spacebanked weeks for rentals. She emphatically said, "No. They do not use Spacebanked weeks for rentals. They purchase weeks from resorts and then rent them."
To take Ms. Collins' challenge an additional step further, I contacted Frank Debar, a TimeSharing Today subscriber and a veteran timeshare owner. I asked him if he knew of RCI's representatives denying RCI's taking deposited weeks and using them for rentals. He said that he did and I asked him to send me an email so that I could send his response to the Court and to Ms. Collins. Below is a copy of that email.
Shep Altshuler
Publisher
TimeSharing Today
Email from Frank Debar June 17, 2009
Shep,
As the Director and Founder of the Florida Timeshare Owners Group, I would like to advise you that I have been a member of RCI for about 24 years now, and that I am an owner of 8 timeshare weeks, and have consistently requested approximately 4 to 5 exchanges per year thru RCI. Currently, I have 8 of my owned weeks deposited with RCI, seeking exchanges
thru the RCI Weeks Exchange Program. Most of them were deposited with RCI
approximately a year or so ago. I have as yet been able to obtain an exchange, as requested, thru the RCI Weeks Program.
I have been informed by RCI that my exchange requests cannot be met, due to their lack of inventory, but, they have consistently informed me that inventory is available for rental purposes instead. In my numerous conversations with RCI, I have been advised that RCI does not rent out Weeks members deposited weeks, when seeking exchanges.
I have also been advised numerous times by RCI that deposits by Weeks members are reserved for other Weeks members requesting exchanges, and not diverted to the RCI Points program inventory.
I personally find that RCI has clearly misrepresented their Weeks Exchange Program for the past 3 or 4 years. As a result, I do not plan to deposit further weeks with RCI until they
change their current faulty policy, and provide me with exchange requests for the 8 weeks that I have currently deposited with them.
I also hope that the current RCI legal suit, with its proposed settlement now pending, will provide all of the RCI Weeks members with adequate and sufficient relief from this most onerous and deceptive RCI attempt to exploit its Weeks members.
Sincerely,
Frank Debar, Director
Florida Timeshare Owners Group
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staff@tstoday.com Subject: RCI representations
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