Wyndham Class Action Says Club Membership is Worthless

A recent class action lawsuit claims that Wyndham takes advantage of property owners at an Arkansas resort.

Wyndham has reportedly been selling real property lots located in the Fairfield Bay Ozark Mountain Lake Resort & Community for at least 45 years.

According to the area’s website, Fairfield Bay is an “outdoor lover’s paradise.”

The amenities at the resort are reportedly comparable to a “five-star resort” and the community is described as “active, engaging, versatile, and accomplished.”

However, individuals who purchase property within the resort community are taken advantage of by deceptive club fees, the Wyndham class action lawsuit states.

Upon purchasing property in the resort community, consumers are allegedly required to join a “club” that involves a monthly fee of $30. Individuals who join the club reportedly “shall be entitled to the rights, privileges, and benefits of a member.”

However, plaintiff Gordon Jackson claims that there are actually no benefits in joining the club. Instead, Wyndham allegedly takes advantage of consumers by forcing them to join a club with literally no benefits.

“Class members pay monthly assessments and receive absolutely nothing of value for their money,” the Wyndham class action lawsuit claims. “When they ask to withdraw from club membership, they are threatened with ruination of their credit rating if they try.”

Jackson estimates that Wyndham may have made millions of dollars from this deceptive practice. With around 300 lots in the Fairfield Bay Ozark Mountain Lake Resort, an average ownership of 30 years, and an average assessment charge of $30 per month, Jackson calculates that Wyndham has collected $3.24 million in club fees.

Additionally, Wyndham reportedly promised various improvements to roads, water, electricity, and other utilities when showing properties to consumers, but these improvements were never made.

Jackson argues that he and other consumers made their purchasing decisions based on these claims by Wyndham. Instead of using the club fees to make improvements, Wyndham reportedly hoarded the money instead where it would not benefit property owners.

The Wyndham resort class action lawsuit claims that Wyndham violates their fiduciary duty to property owners, a relationship that was reportedly created when the property company collected money from consumers and held it “for the benefit of” property owners.

Jackson also claims that Wyndham’s actions constitute unjust enrichment, constructive fraud, and common law fraud.

“Since the time of sale of the lots at the Resort until this date, the fraud by Defendant is continuing in that none of the promised improvements have been made,” the Wyndham class action claims. “The Plaintiff and the Class members continue to be prevented from enjoying and occupying their lots at the Resort.”

Jackson seeks to represent a Class of individuals who purchased real property at in the Fairfield Bay Ozark Mountain Lake Resort & Community and who paid assessments to Wyndham.

The Wyndham class action lawsuit seeks compensatory damages, restitution, actual damages, interest, court costs, and attorneys’ fees.

Jackson and the proposed Class are represented by William P. Creasman of Carney Bates & Pulliam PLLC.

The Wyndham Resort Club Fees Class Action Lawsuit is Jackson v. Wyndham Destinations Inc., Case No. 71CV-19-36, in the Circuit Court of Van Buren County, Arkansas.