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A class action lawsuit says that Wyndham aggressively markets its timeshares and unfairly profits from customers by requiring them to assign their timeshare interest to a trust, from which Wyndham benefits.
Plaintiffs Carolyn Nolen, Windy Kelley, Cara Kelley, and Paula Litton claim that they all have timeshares with Wyndham.
Allegedly, these customers, along with every timeshare purchaser, are required to assign 100 percent of their timeshare interest to Club Wyndham Plus, a program governed by the terms of the Fairshare Trust. In turn, the trust is reportedly controlled by Wyndham.
The Wyndham class action claims that Wyndham does not disclose to customers that the Fairshare Trust is the Fairshare Vacation Owners Association, a corporation controlled entirely by Wyndham. The terms allegedly indicate that the only beneficiaries of the Fairshare Trust are the individual timeshare owners and Wyndham.
Because the trustee is reportedly controlled by Wyndham, and Wyndham profits from the trust, the trustee — Fairshare Vacation Owners Association — profits from the trust, in violation of Arkansas law.
According to the customers’ timeshare trust class action lawsuit, Wyndham violated Arkansas Trust Code, which requires a trustee to administer the trust solely in the interest of the beneficiaries, and dictates that a “trust and its terms must be for the benefit of its beneficiaries.”
The Wyndham class action claims that the Trust Code states that trustees cannot profit from the trust, even if they did not breach the trust in profiting from it.
The timeshare holders argue that the Fairshare Vacation Owners Association’s Board of Directors has the right to change any program or feature of the trust at will, even if these changes are against the best interest of the customers.
During the time period at issue in the Wyndham lawsuit, all three members of the Board of Directors were Wyndham members, and they were able to make changes to the trust even if those changes were not in the best interest of the timeshare holders.
In the words of the timeshare owners, “to gain control over the Fairshare Vacation Owners Association and the Fairshare Trust, [Wyndham] or its affiliated entities appointed its own executives and employees to control the actions of the Trustee.” Allegedly, this led to “tremendous” financial benefits for Wyndham and affiliates.
The Wyndham timeshare class action lawsuit argues that Wyndham’s control of the trust is absolute, and that the company is violating their fiduciary duty to timeshare owners.
The timeshare owners go on to argue that Wyndham requires timeshare owners to pay fees that cover the costs of administering and operating the trust, which only financially serves Wyndham, not the timeshare holders.
Wynham has previously faced claims that the timeshare company misled consumers about its services, and unfairly profited from consumers.
Do you have a timeshare? Tell us about your experience in the comments below.
The timeshare holders are represented by John A. Yanchunis and Patrick A. Barthle II of Morgan & Morgan Complex Litigation Group; James M. Terrell and Rodney E. Miller of Methvin Terrell Yancey Stephens & Miller PC; and Bradford D. Barron of The Barron Law Firm PLLC.
The Wyndham Timeshare Trust Class Action Lawsuit is Carolyn Nolen, et al. v. Wyndham Vacation Resorts Inc., et al., Case No. 6:20-cv-00330-PGB-EJK, in the U.S. District Court for the Middle District of Florida.
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337 thoughts onWyndham Class Action Lawsuit: Hotel Unfairly Profits Off Timeshare Owners
You know when you are in class and by the time the teacher comes to you, everyone has truthfully said everything you planned to say; well, that’s how I feel about my experience with Wyndham!
How do i get in on this. I went to Orlando Bonnet Creek in September of last year and of course they wanted us to sit in on an update. The last supposed “update” I went to was the prior year in Vegas. They told us a bunch of lies and when we refused to deed to their resort they became very nasty and had us sign that we refused and a lot of BS. I will no longer attend any type of “update” because that is most certainly a lie. So when they tried to set up in Bonnet Creek I refused to attend. They called me every day I was there. Did not answer a single call and provided a very nasty review when we left. I have reviewed my contract and their high pressure sales pitches are not part of the deal. They have also called shortly after our initial purchase with a pitch to get us more points and would not extend our term for payments. I immediately sent a letter and canceled the new contract and kept the original. It’s been one thing after another every time we book. The resorts are nice, but I could have a lot more options and save a heck of a lot of money without this headache. I just want to be done with all of this.
WYNDHAM CONTINUALLY MADE ME CHANGE CONTRACTS AT EACH NEW LOCATION I VISITED SAYING THAT THE PREVIOUS LOCATION MADE ERRORS IN MY OWNERSHIP. EACH NEW CONTRACT COST MORE MONEY. BY THE END OF THE FIFTH CONTRACT THEY MADE MORE MISTAKES AND I WAS PAYING ON TWO CONTRACTS, THROUGH I ONLY HAD ONE. EVENTUALLY I JUST STOPPED PAYING. AND THAT SNEAKY WAY THEY SELL OFF YOUR DEBT TO A THIRD PARTY SEEMS ILLEGAL TO ME.
I purchased A timeshare with LAS Vegas @Wyndham I decided to cancel my Timeshare When I read that the form For cancellation I sent through certification. It was signed March 4th 2024 timeshare. IT WASN’T EVEN 30 DAY YET..I CALLED THEM THEY SAID COULDN’T IT WAS MORE THEM 3 DAYS
I feel like it’s getting worse within the corporation of trying to make any reservations. I purchased with Fairfield, sold it out to Sync ham and has steadily increased. I’m interested in any help with getting what is the fair settlement to everyone.
I have a whyndham time share we bought 20 years ago. Was told always would be able to stay 2 weeks 2 bedroom any properties except Hawaii now only get 1 week and 1 bedroom and my dues have gone up severely I can’t believe they are selling the same points to a new client with the same monthly payment I now make
Any attorneys working on the case, please reach out to me, I am a former employee and I am interesting upon working together.
In June 2023 I attended an “owner update” presentation at WorldMark Club 45 in NYC. I was sold time through Wyndham Vacation Club. I was told that this would be an upgrade to my WorldMark ownership, and that myWorldMark would transfer to WVC. Then I started being charged double maintenance fees, one for WorldMark and one for WVC. Upon calling WM, I learned that I had actually been sold a completely new timeshare contract. This was very deceptive. WVC will not let me out of the new contract, even though I was lied to.