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/contact us as well. So tired of Wyndhams scams and lies. Bought in Nevada.
Please add me to this lawsuit.
I already had Wyndham and do the health issues wanted to use my buyback. Instead of doing that which I didn’t even know at the time they added another $350,000 to my contract instead of reducing it so it was up to $750,000 and I had already spent a bunch on it my husband with kidney failure and I have three autoimmune diseases and other things and we kept telling them we needed to get back to our room so we can take our medicines so my husband could rest and they kept badgering us and instead of me ending up with a buyback I ended up with the extra on it. So I ended up having to drop all the contracts no vacations anymore and they ruined my credit I tried to go through them to get them to straighten out what they did and they refused to help me the agents use high Tech high tactic pushy sales tactics. They bully you into buying they tell you to lie as far as income and things like that and they lie to you just to make a sale. I had amazing credit before Wyndham they destroyed it.
Laura: You and your husband’s health are more important than that Timeshare (I in no way seem to disrespectful). I sincerely hope that both of you get better, and not stress over the shady employees Wyndham employers. Your credit can be rebuilt, but we only have one life to live.
Please add Joel and Lisa King. We are in California but signed the contract in Las Vegas, Nevada. We are so tired of giving away our hard earned money to these devils!
Wyndham sales representatives encourage people to upgrade their timeshare for availability to better resorts, but it’s all lies. I’ve lost more than $30,000 dealing with these scum and others who claim the can help me sell or, get out of the contract. How can be added to this lawsuit or start my own?
My family purchased a timeshare after being pressured into it. Our 30 min meeting turned into 2.5 hours. Our 1st vacation with it I was told I had to go through another meeting. I told them I was on vacation and they’re outta there miss d if they think I’m gonna do that. I need help getting out of it. Our monthly payment is nothing close to what we were told it would be. Its double! We cant even afford to go on vacation now! Please help!
Add me. Got scammed by these jokers at North Myrtle Beach. I’m ready.
David, we were scammed there as well. This suit only applies to purchases made in Florida. We will need to initiate a class action concerning purchases made in South Carolina to be able to seek justice
Please add me to any information with lawsuits against Wyndham, and yes their offer is highly deceptive and unfair
Add me!
Please add me to lawsuit.
Add me