RCI, the timeshare exchange members club, is in the midst of a High Court battle that began in May 2016. In the RCI Court case timeshare company is accused of ‘skimming off’ members’ properties to others, whilst retaining the rental funds from trusting timeshare holders for their own benefit.
Over 500 Claimants In RCI Court Case
Around 500 claimants are bringing a High Court action against RCI, in a move that Edwin Coe, the litigation firm representing the claimants calls “a long-overdue shake up in the opaque world of timeshare exchange companies”.
As well as robbing hard-working timeshare holders of their promised holidays, RCI are further accused of making select timeshares routinely available for exclusive use of RCI employees through their incentive reward schemes.
As such, the timeshare holders were left unable to exchange their right to use their unit for an alternative unit in a different location of the same value. As a result, it’s alleged that RCI breached its fiduciary duties of care towards its members, and that their actions amount to prejudicial conduct against their members.
Initially, RCI stated that they were selling members’ timeshares in order to buy others. But now, it’s admitted that it was selling these timeshares to make a profit! One claimant, Jennifer Kravitz, claims that she was repeatedly informed by RCI that no properties were available, despite her making her reservation requests well in advance.
David Greene, head of the group action litigation at Edwin Coe, and the lawyer representing the claimants, states:
‘All timeshare owners want when entering an exchange system is a simple, transparent and effective way of swapping their right to use a property for the right to holiday at another residence of similar quality, within a reasonable timeframe. ‘RCI, despite boasts of its large property exchange pool, seems to consistently thwart this reasonable expectation.
‘We intend to expose these unfair practices at trial, and expect to succeed in securing rightful compensation for thousands of frustrated holidaymakers.’
Of RCI’s 3.7 million global members, over 700,000 are part of RCI Europe. In America, two class action settlements have already been reached over the conduct of the company’s exchange pool.
Members of both RCI Europe and worldwide will be watching closely for the results of next week’s ruling, as will we.