Orlando, FL: A class action lawsuit filed on behalf of timeshare owners at Festiva's Orlando Resort alleging that the resort's developers and managers as well as RCI, a timeshare interest exchange bank, engaged in unfair and deceptive practices and racketeering has been removed to federal court.
The class action suit, Reeves, et al. v. RCI, Zealandia Holding Company Inc., et al., cause no. 13-CA-866-MF, was filed March 1 in the 9th Judicial Circuit Court of Florida, in Osceola County. On April 12, 2013, the suit was removed to the U.S. District Court for the Middle District of Florida, Orlando Division, case no. 6:13-cv-00597.
The suit alleges that, beginning in 2004, approximately 900 parties purchased timeshare interests in Celebration World Resort Owners Association, located in Kissimmee, Fla., from B.L. Vacation Ownership Inc. Between 2008 and 2011, timeshare owners were sold upgrades for a timeshare exchange program by Celebration World Resort Marketing that involved a point system administered by RCI.
The owners were told that the timeshare exchange program would dramatically increase the number of RCI points they owned which could be applied to future timeshare reservations. However, the RCI points were later revoked by Zealandia, the company that purchased the resort. The complaint alleges that Zealandia admitted the RCI points program was "distorted" and "too good to be true."
The amended complaint adds class representative plaintiffs and counts, including the charging of RCI and others with violations of Florida's Deceptive and Unfair Practices Act, Civil Conspiracy and Federal Racketeering Charges (RICO) 18 USC 1962(d).
Michael D. Finn of Finn Law Group, representing the class, states, "RCI administered a program that supplied overinflated points. Those points were used by Celebration World Resort Marketing to sell timeshare upgrades. By processing, and thereby validating the issuance of these 'upgrade points,' RCI allowed the fraudulent transactions to be completed."
The timeshare owners seek a refund, rescission of the upgrade sales contracts, attorneys' fees and other relief the court deems proper.
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My friend and I purchased in 2004 when it was Celebration World Resort getting 82,000 RCI points. When it was taken over by Festiva these points were slashed to 31,000 without notification or explanation. It was an in perpetuity contract and all these years later I'll health means we are not able to use the points even if we wanted to. We are unable to get out of the contract and must continue to pay the hefty fees until we die - after which time no doubt our relatives will be hounded for the fees. We have lost money in trying to exit this appalling situation but alas to no avail. Also because we live in England we cannot even add our names to any class action being taken against Festiva. We were stitched up good and proper and are paying dearly for it.
Posted by DAVID L FOSTER
on
We were owners in this resort when it was Celebration World Resor t. When supposedly the owner took the money from CWR and left the company. Festiva then took over and I had to change to Festiva's point system which I got less value for the CWR points. I upgraded to the highest membership level CHAIRMAN in 2017 and I was lied to about all the perks and benefits that I would get for being a Chairman member. Please add my name to the class action lawsuit. I would appreciate very much to if possible to be updated on the progress of the law suit.
Posted by Jethro Bodine
on
Still TOO GOOD TO BE TRUE
Same deception and lies....still only 1 renovated unit. Yet guests are told that MEMBERS GET RENOVATED ROOMS......
THERE IS ONLY 1 RENOVATED ROOM AS OF 8/2018
Lies and more lies.....
SHUT THEM DOWN
Posted by Karen Tanner
on
I have just received my biannual points from RCI and they are now 31,000 ...not 82,000. I live in Canada and have had no knowledge of the lawsuits . I bought my timeshare in 2009 and was given the RCI participation agreement which was upheld for 7 years. As I am on a biannual I did not even know that my points had been reduced until payment was due this year. All tries at getting to call or contact the next owners at Festiva and now .... not sure who have failed. What do I do?
Posted by CAROLYN
on
Just wanted to leave a comment about Festiva Orlando Resort. We are not timeshare members but do stay at Festiva from time to time. The resort needs to be updated. Most of the condos are run down and have not been upgraded. Old furnishings etc. Stained rugs, old mattresses, old furniture and appliances.
Posted by Brenda M LaMont
on
Very interesting!!!! We bought “Deeds” at Festva Resorts CHURCH STREET INN with less than 35 rooms and a “moratorium on Time Shares in Charleston “South Carolina in 2007. We were told when Fractioal Deeds all sold , there were no more to sell , better buy it now!!!
WRONG!
That was 10 years ago and then they started selling points, points points , Such a ripoff for deed buyers, that’s if you actually got your deed at Church Street Inn; they tried to get you to DEED in Myrtle Beach ( because it was “better “ they said once they knew you were going to buy, but being from Charleston I knew that was BS!!!
UNLIMITED points sales not Deeds began, still selling 10 years later.!!!
Just learned yesterday ( Nov., 2017) they are adding new types of ownership with no maintenance fees. Lovely!
They use this darling little place to sell, sell sell and keep rooms available to house their possible new sales pitches along with their full sales or “convert your Deeds to points STAFF and offices so all those rent when you come anytime of the year rooms are virtually impossible and will get worse.
I could not get a room in October last year for the rest of the year because they were all “booked up” with their “corporate inventory allotment” which is a huge scam!!!
I’m sure the rest of the Deeded owners here are very unhappy with Festiva Resorts bait and switch at The Church Street Inn!
I AM SURPRISED THERE IS NOT A CLASS ACTION LAWSUIT OVER THE CHURCH STREET INN!
alohabrenda.lamont@gmail.com
Posted by trell
on
I purchased timeshare through festiva at coconut palms in new syrmna beach, fl. I'm in the process of trying to get out of it and just found out about the class action lawsuit. I had this timeshare for about 6 years... i spoke to representative about this and they told me i couldn't sell my time sharing back... i was infuriated. I was told when i purchased it that at any time i could sell it back... BOY WAS I WRONG. Words of wisdom GET OUT WHILE YOU CAN!!!! Calling a lawyer right now.. Hopefully i could some of my money back..
Posted by S deRoeper
on
I have been informed today that everyone who was involved with Celebration World Resort and had their RCI points subsequently downgraded when Festiva took over, is included in the class action that has been taken against the company in the federal court. Hoping to hear more news in the first part of next year.
Posted by S de Roeper
on
I don't live in the US either and have only just found out about the case being brought to federal court. I agree that it is not easy for affected parties living outside of the States to either understand or know where to ask for help but I 've just started to look into it. A friend has just told me that the last development in the federal case was in September 2015. I will try to post any further news if/ when I can.
Posted by Jill Sergeant
on
We purchased our timeshare in 2004, (assigned contract number 17563). The original agreement between us and Celebration World Resort awarded us 8,400 Celebration World Resort (CWR) points and 133,500 RCI points odd Biennial.
This agreement worked well until the Festiva Hospitaliy Group took over and renamed the Property, Festiva Orlando Resort, 30th September 2011.
We discovered our RCI point allocation had been reduced by the group when we received our annual statement from RCI. Speaking to the group has been extremely frustrating and we were informed that that’s what our allocation would be from now on, end of discussion.
This week, we have tried to book accommodation at the Festiva Orlando Resort using our CWR points, as we did previously with the Celebration World Resort.
We spoke to reservations and were informed we could not book through the desk or use CWR points. We had to book through RCI and use RCI points.
This is another upsetting discovery.
Does this mean all our official documents that we have kept in a safe place all these years, have no value or meaning?
We have paid all our annual maintainance fees, taxes and membership fees which appear to be costing us too much money with very little reward since this new Group have taken over and they are very reluctant to ever discuss anything with us when we eventually do manage to get them on the telephone.
We have had no response from the lawyers, who acted as closing agents for the original purchase.
We also moved from the UK to Australia in 2008, so find it extremely frustrating finding anyone to communicate with.
I cannot find any up to date reference for your class action. Was there any significant outcome or is it still ongoing?
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