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
Please add me to this lawsuit. [email protected], Thy lied never told me i would be applying for a credit card. I told them I wanted to forget the deal, i asked how at the presentation and i was told by the salesman he could not tell me that. Im tired of the threatening and harassing calls.
Please add my husband and I to the Wyndham World Mark class action lawsuit. We own 2 properties one is still with Wyndham and the other property is with Diamond as of the beginning of the year.
San Luis Bay Inn and Dolphins Cove
Susan and Stacey
[email protected]
Please add me this lawsuit against WYNDHAM.
My wife and I were lured to go to a Wyndham presentation in Branson, Mo. They told us it was not a timeshare because that’s the old way. We now have a new system based on points. I’ve read that some fraudulent laws may not apply to timeshares, like in Nevada. Is the points system and timeshare under the same applicable laws for consumer protection? My wife and I feel Wyndham deceived us and lied about the way that we could use the points we purchased. In addition the classic deception tactics were used. it’s Black Friday and it’s a one time opportunity that we shouldn’t pass up. Plus we were kept there for a longer period that what we were promised. Also, they used auto electronic signature that went very fast, we were just by clicking the mouse. They never mentioned the five day cancellation deadline.
We are Wyndham owners and were told their resorts are only accessible to owners, only. But they constantly book people who are not owners. They also told us that we could upgrade to an additional room by calling the resort the following day after making our reservations. Never happened and they didn’t know what we were talking about. We have stayed in the World Mark resorts (Taos NM) and we wanted to go back, but now they require a $100 extra to book. Every time we check in, they have us go and get our parking pass, there, folks want you to go to a “update” meeting, promising not to try and sell you more points. They always pressure you to go and they always try and sell. We were in Vegas and we told them, no meetings, but they wouldn’t take no for an answer. I just turned around and left. My wife felt I was rude. I told them 6 times, no! In Nashville, they made us put $100 on Visa and was told we would get it back after we attended the “meeting”. We attended and they gave us 60,000 points that disappeared! Sure, add us to your list
nothing but lies about point usage, point usage, availability, etc. etc.
I am a Wyndham owner and was totally lied to at the time of purchase. The sales guy and his supervisor told me I could use my annual points to book a 2 week cruise on any cruise line every year. The truth is when I called to do this it was actually 2 million points! Please add me to the list.
Please add me to your list. I’ve had a timeshare for over 20 years and they continue to call and want me to buy more credits, even though I have continually asked them not to. Their maintenance fees are getting ridiculous. I wish I had never bought it.
Please add me and my wife to this lawsuit against WYNDHAM
I would love to be added as well.
Add me too. We’ve been owners for 18 years and the fees continue to grow rapidly.