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UPDATE:
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This case was dismissed June 3, 2021.
A retired couple is suing Wyndham Vacation Resorts, claiming the company opened two Wyndham-branded $20,000 credit cards without them knowing, and alleging it was “not an isolated incident” for the company.
In a proposed nationwide class action lawsuit filed Friday in the Western District of Missouri Springfield Division Friday, plaintiffs Douglas and Suzanne Ashby said they were bringing the case to stop the practice and hold Wyndham accountable.
Wyndham is a resort and timeshare company that also offers credit cards through partner banks. The Indiana plaintiffs, who are in their 70s, said they were invited to spend three free nights at a Wyndham property in Missouri last July, on the condition they attended a timeshare sales presentation. They accepted.
At the presentation, they said a sales rep tried to get them to buy a deeded property, then pitched them on buying “points” for future Club Wyndham vacations, which they “eventually agreed to buy” for $3,375 on their credit card.
The Ashbys said the salesperson then asked for their social security numbers and driver licenses, and when questioned why Wyndham needed it, they were told it was so they could get the “best deal,” the class action alleges.
Despite the fact credit accounts were never discussed, the pair got home and were “shocked” to find Wyndham and Comenity Capital Bank had issued them each a new Wyndham-branded credit account with a $20,000 limit, the lawsuit alleged.
They had welcome letters to “Your Vacation Club Credit Account” as well as an Experian credit alert. The couple said they immediately complained to Comenity and the accounts were closed the next month, but Wyndham allegedly “stonewalled” them.
“What happened to [the Ashbys] was not an isolated incident,” the lawsuit said, presenting screenshots of multiple Better Business Bureau reviews alleging similar allegations. “Rather, as shown in media reports, consumer complaints, and a whistleblower lawsuit, Wyndham engaged in a nation-wide practice of using consumers’ personal information to open credit cards or lines of credit without those consumers’ knowledge or permission.”
The lawsuit pointed to a case of a Wyndham employee blowing the whistle on how the company’s San Francisco office allegedly “fleeced elderly people rampantly.” That trial resulted in a $12.8 million punitive damages award.
The Ashbys also compared their allegations to those made in a 2017 $142 million class settlement with Wells Fargo, which was accused of opening accounts for customers without their permission.
They said the cases shared a pattern in that companies put in place unrealistic sales goals for their employees and then apply intense pressure for the employees to meet them.
“Next, in the absence of adequate oversight or controls, the employees predictably find ways to game the system to create accounts for customers who do not ask for them, so the employees can meet their goals,” the lawsuit stated. “Finally, the companies turn a blind eye, deny any wrongdoing, and try to minimize the scope of the problem until they are exposed in civil court proceedings like this one.”
The lawsuit also claimed that Comenity and its parent company Alliance Data joined with Wyndham’s fraudulent scheme in 2018. The couple is suing Wyndham under the Missouri Merchandising Practices Act, Delaware Consumer Fraud Act, Fair Credit Reporting Act, Unauthorized Issuance of Credit Cards under the Truth in Lending Act and Regulation Z.
The Ashbys are looking to represent a nationwide Class of anyone who was given a Wyndham credit line without their consent, as well as a Missouri Class. The lawsuit seeks an order declaring that the practices alleged are unlawful and an injunction banning Wyndham from doing it again, plus costs, treble damages and a jury trial.
Meanwhile, Wyndham is also facing other recent claims that it misleads and takes advantage of customers.
In Aug. 2020, Wyndham timeshare owners filed a class action lawsuit accusing the company of lying to customers about benefits and subjecting them to aggressive marketing tactics to get them to purchase useless points. That lawsuit came on the heels of a similar Feb. 2020 Wyndham class action lawsuit.
Have you ever been issued a credit card or credit line without your consent? Tell us in the comments below.
The Ashbys are represented by Gretchen Freeman Cappio and Gabriel E. Verdugo of Keller Rohrback L.L.P. and Steve Garner of Strong, Garner, Bauer, P.C..
The Wyndham Unwanted Credit Line Class Action Lawsuit is Douglas and Suzanne Ashby, et al. v. Wyndham Vacation Resorts Inc., Comenity Capital Bank, Alliance Data Systems Corp., Case No. 6:21-cv-03044-WBG, in the U.S. District Court for the Western District Of Missouri Springfield Division.
Read About More Class Action Lawsuits & Class Action Settlements:
140 thoughts onWyndham Faces Nationwide Class Action for Unwanted Credit Cards
In July of 2021, Wyndham and Comenity Bank opened a credit card account under my name without my permission or knowledge on behalf of Wyndham Vacation Resorts. The matter is still unresolved because Comenity Bank is holding me liable for the account after I told them I did not authorize it. Wyndham also used my account information to auto-debit my Discover card for several other fees and vacation packages. I need someone to help me recover monies that was taken from me without my knowledge or consent.
Yes, I specifically said I did NOT want a Barclay credit card but only wanted to use my current credit card. I started getting emails from Barclays about managing my card balance, but I thought it was to open up a credit line, which I had never knowingly, signed an application for. So I ignored it as a solicitation, and didn’t do anything. Plus I did not have a physical card or even an account number For such a credit card. Then I started getting calls from a collection agency three months after I signed my contract with Wyndham saying that I owed over $4000!! I’ve been unable to settle this with either Wyndham or Barclays! And, of course., ,y credit score is affected.
My wife and her friend was subjected to pretty much the same type of fraud; in early September of 2023 they attended a ‘120 minute’ presentation at Wyndham Resorts in Las Vegas that lasted well over three hours; where several Wyndham sales associates attempted to first sell them a time-share in the resort, then a vacation package. They also were asked for their driver’s license and SSN so the best deal could be arranged.; they never agreed to purchase anything, and were eventually asked to sign a blank electronic tablet for some gifts for attending the presentation, including discount tickets to a Las Vegas show. Three weeks later my wife received a new Wyndham Rewards Earner Credit Card from Barclays bank with a charge of $3279 for a Wyndham Vacation Plan. We immediately contacted Barclays and disputed the . We immediately called Barclays, disputed the charge, and froze that credit card account; that is also when we called Wyndham to report the problem. It was interesting to find out that Barclays has had this problem many times before us; it took over three months but Barclays eventually did get their money back from Wyndham. Wyndham so far is still claiming they have a valid contract and refuse to cancel it; they have emailed us a portion of the alleged contract with my wife’s signature; we think that signature came from the tablet receipt for the tickets and “free stuff”. We found it hard to believe a corporation the size of Wyndham, whose current net worth is reported to be over $6.5 BILLION, would stoop to such measures.
In April 2022, we did buy additional points at Wyndham in San Antonio. My fiancé actually agreed to the additional purchase but as I recall I was not even listed as a co-owner. In fact, I had just weeks earlier signed up for a debt reduction plan! When we got home, I received a Barclays credit card with a $7,000 down payment to Wyndham. I had NO idea I signed anything for a credit card. That 7,000 is now with a collection agency and I am paying $350 month with a balance under $4,000. I’m still livid Wyndham did this to me .
My husband and I were Scammed by Wyndham resorts in Branson, Missouri in June of 2022. Listen to a seminar for an hour and receive $235. After 4 hours being stuck in their office, my husband, Brett felt perhaps we could do their 2 yr/26,000 points offer. When we got home and received a Credit card and a ding on our credit report, we were shocked. they hid the fact that was a Barclays credit card, which they had charged the $3,000+ charge and calling it an Earner’s card. Then last February when i tried to use said 26,000 points for our vacation was told that we had n points, because we had not used the credit card. I cancelled immediately, and they are still trying to collect on the money they charged on the card.
Wyndham Vacation Resorts offered in TN sales presentation to reduce the maintenance fees with the purchase of more points. They would show us how to do this to reduce maintenance fees each year. Turns out part of the plan to reduce maintenance fees was to pre spend points back to them for resale which they credited maintenance fees. Two Comenity Capital Bank credit cards were issued even after we stated desire to use what we had.
I would like to be contacted about this situation. I just received a letter from Comenity saying me vacation club program is ending soon. When I went to the presentation they only told me about one card which was Barclays but not the company mentioned above. I would like to go after both Wyndham, RCI, and Comenity.
I would like to be contacted, regarding Wyndham and their practices. I was lied to and extremely pressured to get this “vacation” I couldn’t use at all. That was charged on a credit card.