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
Bunch of scammers. Went to Nashville and wasted 12 hours. They pressured me into signing paperwork. When I told them I didn’t want anything they continued to push me into buying. They filed paperwork without my knowledge and opened a credit card under my name when I never authorized opening a credit card. Kyle was the sales person. Then they had more managers come in to try to close the sale. Tried to tell me that if he didn’t make this sale he would get fired.
Everytime I said no and told them I needed to leave because I had tickets to a show they just continued to push and push. They wouldn’t let me leave. Even when I tried to leave by going outside to go smoke they had 2 people guarding me. It felt like a prison. When I finally agreed to sign their lowest package deal they allowed me to leave. The next day I went back and told them I no longer wanted the time share. They threatened to sue me. They told me I wasn’t able to do it. They told me I had to get a different package and wasn’t able to get out of the time share, When I told them I wanted to call my lawyer so that he can send them the drafted paperwork they informed me I’m not allowed to do it. The only thing I was able to do is to change the amount of points and kept throwing promotional packages at me. At that point I’ve wasted another 6 hours trying to resolve the situation and didn’t get anywhere. When I got home I was able to file all the necessary paperwork to get out of the timeshare. However, 5 days after the vacation was over I came to find out that Kyle decided to open a wyndham credit card in my name without my knowledge.
Please add me to this lawsuit if I am eligible. The sales are very high pressure and the maintainance fees are impossible.
Please add me to the time share lawsuit against Wyndham. Although I have since gotten rid of the timeshare, it was a nightmare experience. Although it was over-priced, I would have dealt with the fees has I actually been able to book a vacation once a year. I was unable to book a vacation at my “home resort” even time despite attempting to book more than a year out!
Please send me more information about how we can join this suit.
We would like to be added as well. We were lied to and manipulated into getting a timeshare we advised them several times we did not want.
Please send me more information regarding this lawsuit. We were told in the sales pitch @Wyndham Grand Las Vegas that that government laws did not allow them to give us more time to think about investing. It was a one time only, take it or leave it by the end of the presentation. We bought this in February of this year and the one time I tried to use it to make a hotel reservation, I was told that I have to book 3 months in advance to use my points.
My husband and I were misled about the benefits of being Timeshare Owners. The points that we purchased did not cover a week of vacation, as they advertised it would. After the purchase of the Timeshare the did not complete their contractual duties.
Please add me to the lawsuit. I walked out of the room after an hour and a half. The guy was trying to pressure me into buying more points to upgrade. He said I had equity of $14,000 or more but that I assigned Wyndham the equity or trust. It was ridiculous!
This happened in Las Vegas a few days ago. I bought my timeshare in Texas.
I am in Australia. Can you add me to the lawsuit please?
Please add me…I have contacted the attorney general’s office and the better business bureau to no avail!