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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 need to be added!
My sister and I got convinced to purchase a time share, with many promises. But after the sale was made I was unable to book at Wyndham, and when I decided to sell, they refused because I still had a balance. Never got to use it once, and the down payment was over $5,000.
Please add my name to your litigation.
Thank you
My wife and I joined last year and are paying quite a bit in monthly dues. They do a outstanding job during the presentation and we ended up signing up for way more than we should have.
Unbelievable how “great” this opportunity is when presented versus how frustrating it is when you try to plan your vacation.
NOT a good deal at all but we are out so much money that to sell it would be a substantial loss.
Add me
We own a timeshare with Wyndham. We were told recently that they are out of business & no longer own the property where we purchased our timeshare. Therefore, others Will always have priority over us in booking. Also, we are limited to certain ‘older’ buildings, even though our maintenance fees continue to go up.
There isn’t enough time to get into all of the misleading info that was given to us I order to get us to purchase!!
Please add me to the list. I have been a Fairfield Fairshare/Wyndham Vacations owner for over 20 years.
I purchased at Wyndham recently but requested a cancelation. I have not yet received confirmation of this so I am commenting that I agree with this class action
I’m a Wynham timeshare owner that was told if I didn’t use my points they would sale them to pay for my monthly fees. This was after I asked to downgrade or cancel the program all together. What happened is that the salesman ran my husbands credit without his knowledge and added points to our account causing our monthly bill to change from $300 to $600 a month. We weren’t aware until we got a call from the credit card company indicating the payment was late. The credit card company did an investigation and saw that it was fraud and closed it thankfully. However, Wyndham did their own investigation and said that I wasn’t paying attention durning the signing of the documents and was on my phone the entire time. That is true because the salesman told us to just agree to everything and we won’t ever have to pay again.
Please add me to this as well
PLEASE add me to this class action. Promised so many amazing things but can’t even make a reservation. Was told can use at other hotels outside wyndaham it would just take more points. Then found out that is not even possible! 300+maintenance fees a month want to sell but don’t want to be out all the money I have paid out over the last 5 years. Please add me!