Exchange giant RCI slammed for 'heavy handed' threats to Teesside pensioners over £89

RCI is the world's largest timeshare exchange network and is owned by the Wyndham Worldwide Group.

RCI was bought as a way to offer additional benefits to members of Wyndham Vacations International, the world's largest timeshare company. WVI posted a revenue of $5.2 billion for 2022.

So why are RCI threatening a retired couple from Stockton-on-Tees with 'nuclear' legal action over a alleged late payment of £89?

RCI background

Resort Condominiums International was formed in 1974 by Jon and Christel DeHaan as a way for timeshare owners to expand their destination options by exchanging into each other's resorts.

In the following half century the company added magazines, digital services and even it's own global points system. After a couple of ownership changes, half a century later RCI is owned and operated by Wyndham Destinations and is part of the Wyndham Worldwide Group.

Most people who bought a timeshare in the last few decades were simultaneously signed up to a membership of one of the two major exchange networks, the other being Interval International. RCI is the largest by far, even more so since it bought the third largest exchange company, 7Across (formerly Dial an Exchange) in 2019.

Expensive

Just to be a member of RCI a timeshare owner has to pay £89 per year. That is without using a single RCI facility or service.

On top of the annual membership fees there are a whole host of costs associated with actually using RCI for exchanges. There are fees to exchange, fees to deposit, fees to extend, and fees to save.

None of these fees apply to a regular holidaymaker, who simply sees a holiday he/she likes on Booking.com (including holidays in actual timeshare resorts) then clicks and books.

Timeshare exchange companies like RCI are an attempt to fix the timeshare problem of inflexibility. But they are a complicated and expensive fix, and one that does not work particularly well.

Unexpected bill

68 year old retired fire brigade worker Wilma Jordan, and her husband Paul, a 66 year old ex joiner were shocked to receive an unexpected and aggressive request for £89 from the exchange giant.

"It didn't say what the invoice was for," Wilma tells the Timeshare Advice Centre. "It was just a mysterious bill for £89. Accompanied by threats of legal action and CCJs if we didn't pay up within days.

"RCI have failed to provide any further clarification, despite our requests. All we get is: 'pay up or else!'"

"It was strange because they emailed me, but sent the physical letter to Wilma," adds Paul. "There is no consistency, and no explanation. Just heavy handed threats. We could pay £89 of course, but why should we just because they say so and because they threatened us with solicitors?"

Is RCI in trouble?

This level of aggression from a major, industry leading company like RCI has attracted condemnation from industry experts.

"This feels like bullying pure and simple," says Andrew Cooper the CEO of European Consumer Claims. "You have to wonder why a company like RCI would be issuing such serious threats over such a small sum of money, and why they won't say what it is for.

Timeshare Advice Centre is in touch with the Jordans and advising them on the issue.

If you have timeshare related problems and need expert help, get in touch with our team for free, confidential advice.