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
We purchased the Platinum premium package for our business and we’re told being Platinum members means you can book any of the 10 resorts we needed to be at for our business shows. We’re told to book every resort we wanted in January 2019 tried booking on line and couldn’t get even one to book. So I called and tried to book with the Platinum concierge service and they to couldn’t book any of the resorts. we were told they were available at sales the presentation and went through all 10 dates and days needing to be booked.
We bought the Platinum package outright and therefore had no ability to purchase additional accommodations when this Wyndham package didn’t work.
We lost our business because of this Wyndham Platinum package because we couldn’t do additional accommodations and that kept us from attending the shows we always sold at and the only market we attended.
Lies lies lies…
Please contact us if we can pursue further actions .
Hello, in 2005 I went down to Florida with my then husband, but we were splitting up, he had gotten another female pregnant. we took some time away from our kids, and traveled together for a break, and yo get away. While we were there, some couple (apparently working for timeshare) heard of our story and wanted to assist us in a free vacation, and some upcoming perks, we had no idea about time shares etc, as we were very young, they told us all we had to do was accompany them in a 90 min presentation about some hotel they want to build, and we would get a free vacation out of it, we thought sure why not. We then spent the whole day, having several different people trying to convince us to buy part in the time share, and we can use any where anytime we wanted. And they made us feel like they were doing us a favor, after someone reluctantly approved us for a loan, for this purchase that we were so confused on, but excited because they told us it was a great investment, that even if we did split up, it would go right to our children. All of this was lyes the played on the fact that we were splitting up, why would we have purchased something together if we were splitting up, only to think it would go straight to our children, we lost tons of money, and it went on our credit report for years, my ex had to take a loan out to pay it off to sell it but never received any cash from this. I feel we really got scammed.
Please keep me updated they are a very misleading and pressuring organization. Let me know if I qualify
Please add me to the list for the lawsuit.
wyndham must send their employees to sales training 101 because my story is similar to everyone else’s mentioned above and I bought in Maui. When I return to the time share presentation two years later I was told it was just an annual maintenance to make sure that the owners Q&A SESSION ONLY. When I got to the presentation it was to buy more. I was insulted by the sales rep when I wanted to leave they didn’t allow me to instead they went to get another person to bully me. I have bought My timeshare back in 2015 but have yet been able to use it.
Omg it is about time someone got these rip off kidnappers. I was invited to one of their “one hour seminars with free lunch” and was literally held captive for 5 hours. 3 large men stood over me and harassed me after the “one hour seminar” for an hour and then they harassed me one by by one with the pressure tactics increased with the onset of a new “salesman” finally after 3 more hours of saying no and that I would like to leave several times they still would not let me go. Instead they brought out a fourth guy who was even more obnoxious for another hour! I kept telling them I never make any purchase without spending one nights sleep on it. The whole thing was one of the worst experiences of my life. I vowed to NEVER GO TO ANOTHER “one hour seminar” again! I was literally shaking when I left. The lunch consisted of a stale bread thin sandwich and soda. I think my blood sugar was getting low in addition to being harassed!
add me I attended 2 years in a row
While in New Orleans getting my daughter ready for her first year at Dillard University in August of 2018,I was staying at a WorldMark Timeshare and was approached by a Wyndham sales person who convinced me that purchasing Wyndham would elevate my Worldmark dues and I would be paying far less maintenance dues if I purchased the upgrade. Well I ended up with 2 timeshare which I couldn’t afford and finally they placed the non payment on my credit . So please add me and my sister on the law suite. They ruined both of our credit scores and my sister lost the chance to purchase a home for her children in 2019
Please add me.
I OWNED WORLDMARK FOR 20 PLUS YEARS PAID IN FULL WHEN IN VEGAS THEY TOLD US WE HAD TO ATTEN AN OWNERS UPDATE AND THEN THEY SIGNED US UP FOR A CREDIT CARD ATTACHED OUR PAID INFULL TIMESHARE TO A NEW LOAN TOLD US WE WOULD NOT HAVE MAINTENCE FEES WITH THE CARD, NOW THEY ARE WRECKING MY CREDIT BECAUSE THEY PUT ON MY CREDIT REPORT OVER 500 DAYS LATE AND I WAS DENIED MY REFIANCE ON BOTH MY HOME LAONS WITH IS GOIN TO COST ME THOUSAND MORE IN THE LENTH OF THE LOANS. PLEASE CONTACT ME ASAP I HAVE ALL THE DOCUMENTATION.
951-237-9454 SUSAN
Felt pressured to purchase, & updated twice after long days of what should have been a short time with the Wyndham presentations. Please add to list & keep informed.