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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
Please add me to class action. They have ruined my credit provided false amend misleading maketing tactics. My online account was lock out for a full year not allowing me to schedule vacations. I have requested several times for a detailed statement summary they have yet to provide. The hotels they provide are either trash or you can book. But not being able to log onto site I can even research the resort. This type of finiancial abuse needs to be exposed.
Please add me. I want out as well. I was lies to and mislead as well. Retired Army veteran. Many years of service. Now as a result of some medical issues I can’t travel. This is a bottomless money pit. Called the main office about an exit and was referred to a company that sells timeshares. This company has several thousand listings. Mostly fake I suppose just like the Wyndham sales presentation.
Please add me. I want out as well. I was lies to and mislead as well. Retired Army veteran. Many years of service. Now as a result of some medical issues I can’t travel. This is a bottomless money pit.
Please add me to this lawsuit line of credit an credit. card accounts was opened without my knowledge they mislead me with 4grankids in tow for longer than 90min several hours to get gift cards for my grandchildren an park tickets ended up later not being available just 1 card believing everything that was mentioned by people here..vacation that u can use anytime etc..This needs to stop what thier doing to others..Even after being furloughed from primary. Job losing my mother and one job other goin out business due to Covid they said i qualified for buyback they still didnt help me rectify but calling to upgrade never returning call from that dept..its so much to post..I need help!!
Wyndham Branson Sales Dept was not authorized in any way to open credit cards or lines of credit and opened 4 lines of credit without our knowledge ir authorizatio in mine and my husband’s names. Their reply to us was that’s what they do and other people understand so they expect us to understand as well and they will not stop nor will they make it right. Per Sarafina of Owner Services with Wyndham.
How can we be added?
Please add us to this lawsuit. We also were lied to and coerced for hours to sign. We are in our late 70’s and can’t afford this. We asked to get out and got the run around so are stuck.
Wyndham vacations should compensate everyone !
They lied grotesquelythrough the entire presentation.
Add me. There was some type of recent change in the fair share contract. They tried to explain it at our update but in essence the value of our points has changed since it is under new ownership. Of course the usual tactics of buying more to get more out of our plan. We’ve been members for years and try to get the most out of our money but it’s really like throwing money away.
If you know if any reputable companies to get us out of this timeshare we would be very appreciative.
I would like to be added. To long of a story to post but we tried to cancel within 72hrs of purchase but everyone that was involved in the deal were suddenly not available for weeks. Then 2 months later we received a letter from the resort saying that we were 2 months behind in maintenance dues. We called Wyndham and they said they received the maintenance dues but couldn’t understand why it wasn’t sent to the resort Long Warf in Rhode Island. 8 years later we still don’t have access to any Wyndham resort but we have 2 years left to pay on the 10 year agreement. HELP