Wyndham Faces Nationwide Class Action for Unwanted Credit Cards

UPDATE:

• 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.

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