▪ 03/02/10 ITRA’s Television Awareness Campaign 2010

OIn order to maximise public awareness of the various legal actions being pursued on behalf of disgruntled and unhappy timeshare owners in the UK. ITRA has reinitiated its television advertising campaign.

In January 2010, ITRA contracted 55 commercials across Channel FIVE, FIVER and FIVEUSA.
In February 2010, ITRA has scheduled 242 commercials on Sky News and Travel & Leisure.

Funding permitting ITRA hopes to continue advertising through this media throughout 2010.

▪ 06/10/10 Should You Buy a Timeshare Now? "$1 May be Not be a Good Deal!"

By Chuck Green at Bankrate.com
• Timeshare sales declined 8 percent from 2007 to 2008.
• Timeshares should be considered a vacation alternative, not an investment.
• Financing a timeshare is difficult these days so you'll need cash.

Like all real estate, vacation timeshares have taken a beating in this recession. For the first time since sales have been tracked, the timeshare industry experienced a decline in annual sales volume in 2008, according to the American Resort Development Association, or ARDA, an industry group. It reported that sales were down 8 percent from 2007.

So it looks like it's a great time to buy a timeshare. Before you purchase one, though, there are a number of questions you need to answer. Are you going to use the timeshare or is it an investment? What other costs are associated with it? Will you be able to trade it? Can you get financing?

"A timeshare should only be thought of as an investment in your future vacations," says Lisa Ann Schreier, founder of Timeshare Insights in Clermont, Fla. "Timeshare isn't a business for consumers; it's a vacation alternative."

A timeshare has a value proposition that comes from using it, says Howard Nusbaum, president and CEO of ARDA. Buy where you love to go, he says, because in years that you don't want to exchange, you always have your home resort.

Brian Rogers, owner of TUG2.net, a timeshare-owners users group based in Orange Park, Fla., also advises against purchasing a timeshare as an investment. "The overwhelming majority of owners encounter the staggering depreciation of a product unlike any other I can think of," he says.

"Only those who want to use the timeshare should get into the market," says Judi Kozlowski, a broker with Re/Max Properties SW in Orlando, Fla. "Timeshare is an investment in your time and family, not a financial investment." Kozlowksi says that if an investor can find an exceptionally good deal in a high-demand timeshare, it should be considered. Overall, however, it's not for the investor, she says.

Potential buyers should base their offering price on breaking even after 10 years, and consider all costs associated with owning versus renting, including the availability of "renting what you want," says Mario Collura, president of TRI West, a timeshare resale broker in Los Angeles.

The costs associated with any timeshare include interval cost, closing costs, annual maintenance fees, real estate taxes, the exchange or usage fee and special assessments, says Schreier. Ask about the history of the annual maintenance fees, special assessments and how much they can go up, she says. "Make certain that after all is said and done, you're spending what you would have spent anyway on vacation accommodations," Schreier says.

Additionally, research the prices of similar properties before you make a purchase, says Rogers. "You'll eventually encounter what all other timeshare sellers do: the extremely difficult resale market." A timeshare is not something you can "flip" easily, he says, should the need arise.

If you still think a timeshare is right for you, now may be a good time to buy. "Prices have never been lower," says Rogers. Kozlowski says she's seen more buyers than usual because of price reductions. Consequently, it's currently a buyer's market. "Sellers are seeing reality."

The best buys are in the resale market, and many can be found on eBay, Timeshare Users Group, or TUG, and Redweek.com, says Rogers. There are hundreds of resale sites, he says, filled with listings from people who want to get rid of their timeshares at bargain prices. "I've never seen prices on the resale market where they are now," he says, noting that timeshares currently are listed at 75 percent to 99 percent off what the owner paid for the timeshare new from the developer. "It's almost not possible to go any lower."

In some cases, though, purchasing a timeshare for even $1 might not be a good deal, he says. "Remember, you're buying something for life."

Buying a property on the Internet will take some work. Collura cautions that while there are many seemingly "good deals" on the Internet, buyers should make sure they understand exactly what they're getting and be able to "match apples to apples." A good timeshare real estate broker can guide you in making the proper comparisons, he adds.

Schreier also recommends that individuals work with an independent consultant in the same way they work with an agent when purchasing a house.

However, if you choose to go it alone, she says, do "lots of comparison shopping." Also, think about how you'll use it, she says: "Do you plan on using this timeshare more as the home resort or more to exchange?" For example, if you purchase a timeshare in Alabama, it will have far less trading power than one in, say, Las Vegas, or Christmas week in Vail, Colo., she explains. Location is the key to trading power.

When it comes to financing a timeshare, loans are available, says Collura, but most are personal loans and a buyer needs a good credit rating.

Almost every timeshare developer will offer "convenient" financing for a period of seven to 10 years, says Schreier. That convenience comes at a price, normally 15 percent to 19 percent interest, she says. Years ago, consumers could get a home equity loan to cover the timeshare, she says. "Those days are over."

Ultimately, she says, if consumers can't afford timeshares, they shouldn't be buying them.

Atlanta-based freelance writer Chuck Green has written for the Chicago Tribune, Wall Street Journal and many other publications.

▪ 06/01/10 BREAKING NEWS - Objection Filed to USA Class Action Week's Settlement

On December 30, 2009, Attorney Jim Hicks, one of the first objectors to the RCI class action lawsuit settlement, filed an appeal from the court's approval of that settlement. Hicks argued that the settlement is unfair because it does not protect RCI members' right to exchange weeks, and instead favors RCI's attempts to rent desirable weeks. RCI obtains this major concession for practically worthless limited-use $30.00 coupons which are worth far less than the exchange rights.
Hicks also oppose the amount of fees awarded to class action counsel as unfair. Hicks therefore ask that the settlement be rejected, so that class members can retain their exchange rights. In addition, although the Plaintiffs Attorneys and RCI's attorneys argued that any consumer protection issues fell outside the scope of the class action lawsuit and that those issues should be dealt with through federal and other agencies, Hicks responded that the settlement unfairly takes away RCI members' exchange rights, and the entire scope of the settlement is reviewable in the appeal.

▪ RCI Loses Multi-Million Dollar Class Action Court Case in USA

Judge concludes RCI Class Action - Approves Settlement Agreement
30 Nov 2009

The November 30th Fairness Hearing in Trenton, NJ lasted approximately 2 1/2 hours. The Attorney for RCI, David Sager, spoke first and explained recent changes it had offered in the Settlement Agreement and reiterated why it was a good arrangement for the Class Members. The Attorney for the Plaintiff, Janelle Welling, supported Mr. Sager. Several objectors spoke and voiced their concerns about the settlement. It seemed that the Judge may have already made up his mind because he allowed only 5 minutes for each Attorney and 2 minutes for the non-attorneys to present their arguments. He then deliberated for 15 minutes before announcing his decision to approve. He also approved fees for the Plaintiffs Attorneys in the amount of $1.7 million plus $75,000 in expenses.
The final settlement will improve the management of inventory and the timing of rentals, but it does serve to ratify RCI's right to rent owner deposited weeks. The original Objectors, Susan Collins, Caroline Lindholm and Shep Altshuler had done some heavy lifting over the past four months and had succeeded in overturning the original Notice sent out by RCI as well as putting pressure on the Attorneys that resulted in some improvement in the settlement terms. The Settlement Agreement will be in force for three years and although many objectors felt that any programmatic changes should be permanent, the judge said that three years was sufficient time to give the Class Members a fair opportunity to see how the new terms worked. He said that if there were legitimate complaints, the Members could reopen their Complaint.
Unresolved issues: The Attorneys for both sides had filed papers arguing that Consumer Protection violations that were mentioned in the Complaint originally filed by the Plaintiffs Attorneys should be addressed by other Federal and state agencies and not by the Court. The judge was not concerned with misrepresentations by RCI Vacation Guides, the lack of disclosure about RCI's aggressive low cost rental programs during sales presentations or the fact that the Second Notice was flawed as to quality and format and failed to mention the existence of the Points Class Action.
In addition to the Weeks and Points Class Action, there is another Class Action against RCI that is pending in the same court before the same judge. You are probably now first learning about that lawsuit. The Complaint states, "1. Resort Condominiums International, LLC ("RCI" or "the Defendant"), through its affiliate Lifestyle Holiday Vacation Club ("LHVC"), promises an easy-to-access resort experience to its members through its enormous network of hotels and condominiums located throughout the world. 2. In reality, LHVC, which is overseen and controlled by the Defendant, has lured thousands of individuals into purchasing timeshares by lying outright about the quality and, more, the nature of services provided. In so doing, the Defendant has defrauded Crete (the Plaintiff) and others ("the Class" or "Class Members"), fraudulently causing them each to spend often tens of thousands of dollars on timeshares worth little more than the paper their contracts are printed on. RCI, through its affiliate LHVC, provides services that are not only grossly deficient and substandard in almost every aspect, but are simply not what it promises. Plaintiff is forced to sue RCI to stop its theft and obtain some restitution for herself and Class Members."
If there is, in fact, a pattern of misconduct by RCI as claimed in these lawsuits, we should not feel confident that this Court will resolve them.

▪ New Itra Tv advert

"We are happy to announce that ITRA´s TV advertisement has now been launched and the campaign has started"

▪ 1/9/09 US RCI Class Action Update - Fairness hearing set for November 30th

On August 12th, a hearing was held in U.S. District Court, Trenton NJ. The Attorneys for the Plaintiffs (Weeks Members) and the Defendant (RCI) argued that a 4 X 6 postcard, sent to 2.7 million current and former Weeks Members, would be sufficient as a new notice dealing with the proposed settlement agreement in the three year old RCI Class Action lawsuit. While sending another notice was significant, the objectors disagreed; they argued that more than that was needed, an email blast to members was suggested, and the judge then ordered that an email notice to 500,000 RCI members was to be added.
Our voice has once again been heard. It means that this time there is the opportunity for over 2 million additional members to learn the details of the settlement, the required filing dates and the complexities of what is involved in opting-out, filing a claim or objecting to the settlement terms.
The judge also ordered another Fairness Hearing, similar to the one on June 16th, to be held in Trenton on November 30th. At this time, we do not know the exact date the actual notices will be sent, but the judge provided 45 days for each member of the class to evaluate the settlement and to determine how he or she will respond. Responses to calls to RCI.

▪ 1/8/09 ITRA TV advert goes live

For the month of August ITRA agreed a 274 spot television campaign with Channel 5 to broadcast the ITRA awareness campaign advert inviting timeshare owners to join the proposed action.

▪ 25/7/09 Solicitors and Counsel meet with second group of claimants

On the 25th of July 2009, a second group of claimants met with the solicitors and counsel at 11 Stone Buildings, their experiences echoed those of the first group giving once again further justification for a potential GLO.

▪ 9/7/09 Solicitors and Counsel meet with first group of claimants

On the 9th of July 2009, the first claimants met with the solicitors and counsel at 11 Stone Buildings to discuss their experiences first hand with the legal team. Following the meeting the legal team were further convinced that given the experiences of these clients there was merit in bring a GLO forward.

▪ 23/4/09 – Response from RCI

On the 23rd April 2009, our lawyers received a formal response from RCI Europe’s Solicitors in response to their letter of 3rd April 2009, the contents of which of course remain confidential, suffice to say that all and any allegations were refuted.

▪ 3/4/09 – Protocol letter sent to RCI

Protocol letter sent to RCI informing them of the proposed action.

▪ March 09 –Progress meeting with lawyers

Discussions with the legal team continued in March 2009, and various new issues were covered including the area of claims management, third party case funding and an update about the status of the US Class Action. On 19th March 2009, ITRA wrote directly to RCI’s Lawyers in the U.S.A asking for confirmation of certain points including whether European claimants could also join into the US case settlement.

▪ 23/12/08 Settlement offer made in RCI Class Action Lawsuit in the USA

A settlement has been reached in the class action lawsuit which was filed against RCI in New Jersey, USA in 2006 on behalf of all members of RCI’s Weeks Program.
The lawsuit alleges that RCI improperly skims a large percentage of the timeshares from the RCI exchange bank system, including many prime timeshares, and rents those timeshares out to the general public for profit and also uses them for promotional purposes and as fringe benefits for its employees. The lawsuit further alleges that as a result of these practices, the actual experience of many RCI Weeks Program members is that they simply cannot find any comparable exchanges.

▪ June 08 – Dec 08 – Continued Investigation

For the remainder of 2008 ITRA invested a considerable amount of time working with its members to collate a core batch of potential claimants.

▪ 21/5/08 – Conference with Timeshare Trade Association

On 21st May 2008, a conference was held with a timeshare trade association to discuss their thoughts on the legal actions. It was concluded that they too had received reoccurring complaints regarding inability of consumers to achieve satisfactory services as promised at point of sale of clients timeshare and supported ITRA’s actions.

▪ May 2008 – Progress meeting with lawyers

At the beginning of May 2008, further meetings and discussions again took place between the lawyers and representatives of ITRA to discuss the mechanics and structure for qualification of potential claimants and the marketing strategy, including TV and Press awareness campaigns, internet based registration and pre-qualification forms.

▪ 13/3/08 – Counsel’s opinion delivered

Counsel delivered his ‘OPINION’ letter entitled ‘In the matter of the proposed Timeshare Owner’s Representative Actions- Advice on Relevant Rules and Regulations Relating to the Multiparty Actions’. Whilst this opinion is for the time being kept confidential, it is needless to say that its contents revealed extensive grounds to continue with the investigations on all fronts.

▪ February 2008 – Progress meeting with lawyers

In early February 2008, a meeting was held between the Lawyers and representatives of ITRA to outline the proposed action and the steps necessary to go forward with the project. Topics of discussion included – Counsel’s advice and opinions, relevant marketing strategy necessary for communication to potential claimants and the procedures for Counsel to meet with future claimants.

▪ 11/10/07 – First potential claimant interviewed

In order to hear first hand the experiences of a timeshare owner, ITRA arranged a meeting between the legal team and one of the owners who had particular grievances.

▪ Sept 07 – ITRA contacts potential claimants

On instruction from the legal team ITRA started to investigate further the experiences of timeshare owners so see whether there was a shared pattern of abuse and during the month of September some 1200 timeshare owners were contacted.

▪ 17/7/07 – ITRA meet with counsel in London

ITRA arranged a meeting with Counsel to discuss the merits of forming a class action suit (Joint litigation action) against the parties who have deemed to mislead and cause distress to timeshare owners. Having studied the findings of our preliminary investigations Counsels opinion was that the case had merit and that further enquiries should be pursued.

▪ Sept 06 – Feb 07 - ITRA conducts research

Extensive groundwork, research and meetings were held between the Lawyers and ITRA establishing a firm groundwork for future work. It was also decided at this time to appoint ‘legal counsel’ formally, and an eminent and very well known Lincoln’s Inn Barrister, specialising in this area of litigation.

▪ 11/9/06 – ITRA discuss merits of European legal action against timeshare companies

ITRA approached a well known leading firm of specialist lawyers to discuss in detail the US Class Action case against RCI and whether there were merits to instigate a similar action against RCI Europe as well as other timeshare organisations who may be liable for misleading their clients.