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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342 thoughts onWyndham Class Action Lawsuit: Hotel Unfairly Profits Off Timeshare Owners
I’m a Wyndham Timeshare owner. I’ve had sales people tell me that I must have Wyndham Access Points….so they change my ownership…….then the next sales presentation they tell me I should not have purchased Access Points and change my ownership again. It costs me more money every time.
Add me to the list.
I purchased a timeshare about 20 yeas ago, which at the time was fair field plantation, Then Wyndham took over My fees was 160, then $400, 750, It was a joint purchase, My partner died about 6 years later, which we had insurance, it wasn’t honored, so I continued to pay until it was paid off When I develop breast cancer and wasn’t working, couldn’t keep up maintenance, I was told them would sell it for me, take their fee and send out and send me the balance, I mailed a couple of my agreement, plus copy of my friend death certificate, never got a dime, And they took ownership of my timeshare, When I tried to contact them over 5 times, They claim they had no record of the sale, The agreement didn’t fully explain, Especially about the insurance
OMG I read your response about your timeshare and it gave me goose bumps. My husband and I bought timeshare while on our honeymoon in Aruba back in 1997.Our’s is through Divi Resorts and every visit they try to get us to convert to their new points program with Interval International. We never changed our original contract. 1 year they applied our maintenance fee to the wrong contract and we only knew after they sent us a letter that they took back ownership due to non payment. Our contract was paid in full and they took our contract back over a late maintenance fee that we paid and THEY misapplied! When we sent proof of their error, they said they had to make a new contract and tried making us sign it with the points BS program! We threatened to sue and filed a formal complaint with the BBB and then they reinstated original contract.
Better Business Bureau ratings are public record so big companies care about that grade. I recommend you file a complaint there and hopefully you’ll get some money back. But also join this settlement too! Good luck!
Please add me. We own two timeshares with Wyndham. We regret buying them both!
I am a Wyndham timeshare owner and would like to particpate.
Please add me. I’ve been an owner for 27 years and was aggressively pursued at a presentation. The fees are outrageous and I’d like to discuss this matter.
Add me to the list. I owned 20,000 Worldmark points for 20 years. At first it was great, then Worldmark would sell 3/4 of a new property and leave only 1/4 of it for Worldmark owners. The 1/4 left were always in the poorest location on the property. Take Arrow Point, out of the 7 buildings only the back 2 are available to Worldmark owners. The picture shows the buildings on the water, but those are all owned by other people, not available to Worldmark owners. I found that I could not get into most locations. I also got tired of Worldmark asking me to attend timeshare sales meetings at the resorts. At Seaside I had to attend one just to get the parking pass. I also got tired of sales calls at dinner time 4 times a year. I eventually changed my phone number and did not tell Worldmark. I sold my timeshares last summer for $.05 each. What a rip.
Not onky are we forced to deposit points I never get the loxation i bought nor the quality of an alternative location. It is more like a motel setting and then I am told to pay a fee for second rate locations in addition to the monthly maintenance fee
The only good part is that I paid cash for the timeshare.
So please add me
Please add me to this lawsuit. I rarely can even get to use my timeshare because the rooms of the place I’m supposedly the ‘owner’ never has availability for me!!
Please add me.
Worldmark by Wyndham owner-please add me to the lawsuit