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
This suit only includes individuals who purchased their contract in Florida. If anyone else wants to initiate a class action after having purchased in South Carolina, I’m in.
Please tell me what I need to do to be added to this lawsuit. I made the mistake of signing a contract for Wyndham Vacation Club initially in Las Vegas August 2018. I was harassed and lied to during an Owner’s Information breakfast in November 2018 to the point I had to walk out and report the sales representative, while in Destin, FL. In January 2019 while vacationing in Myrtle Beach I attended yet another Owner’s Information session to hear about the great “upgrades” the company was making and was told by the sales representative that the VIP access I was receiving with guaranteed bookings would be terminated once the 2 year bonus period expired. I was also told that with the “upgrades” the company would implement, it would be in my best interest to follow suit with upgrading my contract. After 4 hours with the sales representative going back and forth with me and his “manager” I finally agreed to upgrade. This was a big mistake. There is so much more to this sales gimmick that I regret getting into. They sold me on false benefits and high pressure. I would like to be added to this lawsuit. Thank you.
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Please add me to this class action lawsuit against Wyndham Timeshare. They have lied and lied and taken my money.
These people are the lowest of the low.Can never go where we want to go. We have been bullied & cajoled from day 1. Hours sitting in what can only be described as torture to buy more points.
This can’t be legal!
Add us to this as we have tried an exit timeshare company and 2 years in we are worried about our house being taken. There has to be a way to get out without being scammed again by the exit companies that are probably owned by Wyndham also.
SEA World Orlando should feel horrible about the people they put in their parks trying to deceive families!
Wyndham is a horrible company
I had high expectations for this ownership. During the initial sales presentation the rep showed me virtual tours of some beautiful places and gave me a tour of the new property in Austin. I was very impressed with the aesthetics and features of all the properties. The sales rep talked about the opportunity to travel to worldwide destinations with my family and that sounded great to me. He sold me on minimizing costs especially for lodging and accommodations. The savings aspect was important to me both at that time (I was saving for my wedding) and later on when we could travel. He told me that all I would need to do was purchase 10,000 credits. These would guarantee a week in a prime location. That was too expensive. The sales reps became very aggressive in their bid to get me to make the 10,000 credit sale. They dropped the pitch to 8,000 credits (still too much) and then to 6,000 credits, at which point I said yes. They told me that although I didn’t have enough to go to the exotic places I would like I would still be able to get to somewhere nice. The key to making any purchase at all was saving on travel and investing in my children’s future. When my husband and I were looking for honeymoon locations, we found the out-of-pocket resort fees were astronomical. It was much more affordable to book directly with the resort. What exactly is the ownership for? The sales reps promised savings and all-inclusive vacations. What constitutes all-inclusive if there is so much extra we must pay? In April of 2019, the salesman Jeremy called (several times) to get me to upgrade to the 10,000 credits. I refused. He told me that upgrading to 8,000 credits would be a good move, then, and would qualify us for Disney World. He told us also about the private yacht – what a great idea! The yacht incentive was only limited to that day. After the upgrade I looked into the yacht experience and found that it can be booked by any club member with enough credits and enough money to cover the out-of-pocket fees. These can run thousands of dollars per person. Jeremy was very aggressive and insulting on these phone calls. He no longer wanted to take “no” for an answer. He made statements such as, “What is there to think about, Kimberly?” and “I don’t understand what there is to think about, Kimberly.” Since being a WorldMark owner I haven’t experienced the savings or the great vacations promised me. The annual maintenance fees have risen 5%. One of the biggest complaints is the lack of clarity on the salesmen’s parts and ownership details. Salesmen’s lack of clarity could be written “lied about or omitted altogether.” To listen to the sales reps we could do anything we wanted with any amount of points. That is not true. This ownership has become more of a money trap than club vacation program. I will be making no additional payments on this ownership. This has turned into a worthless endeavor. I haven’t used this because I couldn’t use it as sold.
LOL- Sorry, it’s not really funny, but I was in Nashville, TN resort “owner update” and the sales guy kept repeating “what is there to think about”. Next time I’ll be, I have to think about what’s for dinner, when everyone would like to eat, will there be rain during my vacation, I have to think about did I take my medication today – What do you have to think about mr Salesman? LOL – They also always tell me I have to sign some paper stating that I don’t accept the offer given to me today – LOL _ I’m like F no I’m not signing anything today – or where does it say ” I have to sign this” Keep asking them stupid questions until your 60 min is up and never never never stay 61 min or longer. There is always something to do on vacation and sitting being tortured by these aweful sales people is not one of the things on the vacation list
Add me to your list
Even after paying all my contracts still
Wyndham is lying company – using wrong clients info in order open credit carts which paid their/yours loan
You never have chance booked where you like to go due their constantly changing rules
Still pushing you buying more points – vacation should be vacation -not spending hours defending your financial situation because you don’t want to spend additional $$$$ for more pints.
Getting this timeshare was the biggest mistake in my life
Please add us as well
Please add to list & keep me informed
I purchased a timeshare years ago and it has been nothing but a pain to deal with since. Lies, Lies, Lies and more Lies!!!
W have a wyndham points. Last time in Hawaii they tried to pressure us into buying 120K in points. That kept it up till I said I and enough.
Recently in Branson mo, we aske a simple question can we use our points any where? First rep said no we had to spend all out time in Branson. Finally another rep came by and said yes we can but we need to spend 17k to convert our other points to use them.
We said no they become irritable and said thanks for wasting their time.
They also said once we buy the 17k in extra points they will manage them and sell them to others and give us 60% of the funds .
When we go to use them we can never find more than one or 2 days together to use them.
As for using them in Hawaii good luck. Do to convid I see not many traveling and we might be able to get a week in Hawaii but we have points for at least 4 weeks.
Please add me to the list