The end of 2016 finally saw the end of the lengthy legal battle between timeshare exchange company RCI and some 500 claimants. RCI was found guilty of breaching its fiduciary duties of care towards its members. The High Court ruled that the company’s actions amounted to prejudicial conduct against its members. So how has this changed the timeshare industry since the ruling?

“The High Court ruling was yet another warning to timeshare exchange companies that the time of making up their own rules is well and truly in the past. Consumers are no longer afraid to stand up for their rights – and to demand compensation when those rights have been breached.”

Jodi Beard, Timeshare Compensation

The ruling was a third setback for RCI, following two class action settlements in the US over the way that the company conducted its exchange pool. The court case centred around the falsifying of available properties and the misleading of owners over both rental income and the availability of particularly sought after properties.

According to the experts at Timeshare Compensation, the ruling against RCI is part of a wave of victories for timeshare owners that has seen the courts stand up to defend owners’ rights like never before. Cases in the US, the UK and Spain have all resulted in timeshare owners standing up for their rights and emerging victorious.

“Every ruling against a timeshare company that has oppressed owners and cheated them of their rights is another victory for the future of the timeshare industry and those who own timeshares. The RCI case is no exception – the ruling has helped to highlight the kinds of practices that must be stamped out in order to give timeshare owners a fair deal and provide them with the service that they thought they were buying into.”

Belinda Rollins,

While no single case will instantly change the whole industry, the building blocks for fairer practices are slowly but surely being put into place. The RCI case was “a long-overdue shake up in the opaque world of timeshare exchange companies,” according to the legal firm Edwin Coe, which represented the 500 claimants.

“It’s a shame that so many timeshare owners are having to take their cases before the courts in order to get fair treatment, but the fact that so many are now prepared to do so has signalled a tipping point in the industry. Timeshare companies that want to stay out of legal battles are having to reshape their practices and think about the way that they treat their customers. Times are changing!”

Jodi Beard, Timeshare Compensation

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Timeshare Compensation and are a trading names of Advanced Business Consultants Legal SL.

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