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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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337 thoughts onWyndham Class Action Lawsuit: Hotel Unfairly Profits Off Timeshare Owners
I own time share with Wyndham, and I want to be added to the law suit.
please add me to the List I also owned with Wyndham
Please add my name as a potential litigant. I own a Wyman timeshare and was mislead about the the deed and maintenance costs. It’s almost impossible to book a vacation when and where we want it. We are forced to bank our points at cost to us in order to save them. The system is entirely over complicated and deceitful.
What qualifies is to be part of the lawsuit.
Add my name please to the class action lawsuit I to own a timeshare by Wyndham Worldmark .. need to get out of it!!
How do we get included in the Wyndham Class Action Lawsuit?
I’ve owned Marriott,Hilton and Wyndham for over 20 years.
The only way to get value out of any timeshare is to buy it on the resale market. eBay,Redweek,etc is the only way that it can be a reasonably priced vacation.
I am interested in selling my timeshare with Wyndham. My husband and I bought our timeshare in July 2019. I ask if we decided to sell our time share would they help us sell it. I was told they would help you sell it. But, months later found they would only help sell your timeshare once the timeshare is paid in full. I was suppose to be on bank draft for my payment, but, according to Wyndham there was a problem with the bank draft. Now, because of that, I’m paying $8 to write them a ck each month. If they were to buy your timeshare they will give you 3 yrs of vacation @ no cost and no maintenance fees for 3 yrs. That is their so called payment to you for your timeshare. I continue to get calls to ask for more money for this and that. It’s nothing but a scam. I want out of this timeshare. I really agree this thing is a scam. And what sad, not just me but we all fell for it. I want out of this mess of a timeshare. We are from SC and not sure if this would include us as well.
I had the discovery membership which they told me builds equity over 2 years. After Before my last payment they tried to get me to buy the full timeshare saying I could use my equity to pay into it but I refused. After my last payment I inquired about the equity money they were so willing to give me if I made a purchase & they said that the contract has been cancelled now so I’m not entitled to that money. They are so full of it!! Glad I didn’t do a full purchase & get ripped off more.
I to have a timeshare with Worldmark by Wyndham and have been made promises of other places we can stay but have never managed to be able to get a room there. All of their contracts benefit them and not the owner. And they will not let you out of a contract or does until you pay off any loans to their benefit again.