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
We got sucked into buying one while in Orlando – we just wanted tickets to take our daughter to Sea World. Very hard sell – we could never use it & eventually couldn’t pay any more. They finally gave up after, literally, years of harassment.
After my Dad passed and went on a vacation, we were pressured to buy into buying this timeshare. Add me to the list
Please add me. I got mine in Vegas and pressured again in New Orleans to increase. I’m paying $145 for the credit line and balance is 1500. And I’m paying 255.00 plus 53.00 in maintenance fees.. when I ask about taking a trip my points will cover only three of four days. If I want to take a week I will be out of pocket .
Add me to this list. I can never get a resort when I want it. You have to book 1 1/2 years ahead. You can be on a wait list. But doesn’t guarantee anything.
Please add me to the list. I’m also a timeshare owner.
They lied to me about everything I got signed up for the timeshare at Atlantic City Wyndham all I wanted was the free vacation they give away with the seminar but boy did it come with a big cost without knowing all the facts I signed up. I tried to put in a rescission letter later once I did more research but they said I had 7 calendar days when I originally thought I had 7 business days so wyndham refused to end the timeshare contract because the letter was received on the 8th day. After fighting with them for about 8 months and my credit score dropped 300 points because they continued to charge fees and dues. Recently I disputed the fraudulently company and it was dropped from my credit. The agents at Wyndham used false information and a false financial basis to get me financed for the loan and I reported this to Wyndham and the financial bureaus. Wyndham then sent me a letter and apologized it seemed funny but I don’t hear from them any longer and they are finally off my credit report. I feel I deserve my share.
I purchased a time share back in 2008 or somewhere in that area. We used it for out Honey moon in 2009 in San Diego. The frustrating thing is that we had to pay for parking which really added up. If we did not want to pay for parking we had to find parking on the street somewhere and in Down Town San Diego that was not easy. Had we known this, we would have either planned better or we would not have gone. We stopped using it shortly after.
We were duped by Wyndham in January and are very frustrated. We had previously purchased their Discovery unit. Which cost approximately $2600. Before we even had chance to use it they invited us down (for a small fee) to view the whole program. They led us to believe they would help get us out of a former time share gone bad. We didn’t need a down payment because they would give us a “line of credit”. We could use their credit card to earn points to pay the maintenance fee. After returning home I started to do some research. I found my other time share would not only NOT go away but they couldn’t give me the promised points they said they would. I found we would need to buy everything we purchase and pay every other debt ( including the time share payment to them) we have in order to accumulate enough points to pay the maintenance fees. The line of credit is at 18% and the payment is $165 a month. I found out the cancellation period is 10 calendar days, not business days because during the ten day period, there were two Sundays, one Saturday and Martin Luther King Day which held up my research and made me one day late for cancellation. They would not cancel. I had already deposited the 300,000 Discovery points. They offered to sell it for me at a cost of around $2600. I felt I had no choice because I cannot pay the $266 points payment, over $100 maintenance fee and the $165 line of credit every month. A lawyer would cost me an additional $3800 which I do not have. All and all I am out around $4800 and have nothing to show for it! Of course this is IF they can sell it.
I also am a timeshare holder can you please put me on the list
Please add me to the list. We own a Wyndham Time-Share at Star Island. We feel we were not only pressured into buying but was down right lied to. We were never about to get locations we wanted. The maintenance exceed over $1,000 a year which we quick pay. Now that we are on Social Security we no longer and afford these fees. I asked them to buy back but the answer was no.