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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341 thoughts onWyndham Class Action Lawsuit: Hotel Unfairly Profits Off Timeshare Owners
Me and my husband got a time share with Wyndham and was pressured several times and we got more points because they made it sound really good. Tony lied to us about several things. We are out over 23,000 because we had to pay off the paypal acct that they set up. Now we are having to file bankrupt because of these crooks. This has been overwhelming and has caused alot of stress.Mot only are we out alot of cash but now our credit is very bad. We are still currently going threw the stress of what the have falsely told us and have done. Please add us
My husband and I are current WorldMark/Wyndham timeshare owners. We initially purchased in October, 2019, and have already felt pressured to buy more points. Please add us to the class action lawsuit. Thank you.
Please add my husband Victor Vega and my self. We bought a timeshare 5 years ago In Las Vegas and never been able to use it. We tried to get out of it right when we got home after we tried to book our first trip it’s been a huge headache with no luck to get out of it. My husband credit has been damaged greatly
I’m a Wyndam Timeshare owner and they have been fraudulent with me. I. July 2019, my daughter & I signed up for more points to be bought monthly, then we decided not to do it. On the 3rd day, I texted Brandon Newell & told him to cancel it. He responded saying he could make itt where I could afford it. I responded and told him I was very sorry but I’m on a fixed income & can’t do it as my daughter was not. They are still charging me over $430.00/month for the points, $100.00+/month more on maintenance fees, plus the charged $3700.00 on a Wyndam credit cards that they issued my daughter & I. I have emailed them to no avail. I haven’t heard from the since early January..
Please add use to the Wyndham class action suit. We have been owners for 17 years and the fees are steady going up and we usually can not get the location we want. Thank you
Im a Wyndham owner and honestly, all timeshare companies are straight up crooks and liars. You never get what you paid for unless you are the most flexible person in America. Points always end up expiring, might as well just give money away.
Please add me to the Wyndham list.
Please add me. Former Worldmark/Wyndham owner here.
Please add me I am a past owner
Please add me to time shares