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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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340 thoughts onWyndham Class Action Lawsuit: Hotel Unfairly Profits Off Timeshare Owners
I agree with the high pressure sales. I don’t even go to the “Free” Breakfast and update any more, even with the bribe of a $100 debit card for attending. How do we get added to the list?
Fees have gone up every year since I purhcased a Wyndham timeshare.
Add me to the claim !
What I originally signed up for back in 2001 isn’t even close to what I receive now for much more costs. My story is the same as the comments above. Fees go up every year and it’s harder and harder to book anything.
In January I called to move the credits that were about to expire (because I wasn’t able to book anything) to RCI and they were already gone. I said I wanted to move them and that I had another day to do so before they “disappeared”. I was told the case would be escalated and they would get back to me. It’s now March and the Credits never reappeared and I have never been contacted.
How do I get added to this?
Please add me! Disappointed in availability when trying to book and pressure during owner uodates
Me too. Ripoff and fraud. The salespeople do get mad when you tell them “No”. Bad business—wish we never signed up. Timeshare is paid-off; however, the fees are ever-increasing, losing points and vacation times are not available.
Definitely need added to this.
Add me. High pressure presentations. I was told to get their credit card.. walked out on them. Maintenance fees keep going up and the points for stays making it impossible to book without adding points. End up paying to add housekeeping points to vacation
Please add me
Our monthly maintenance payment on 210,000 points increased by $85.00 each month from what it was last year. Seems like everytime we have contact with Wyndham there’s another fee. Latest one was if you stay more than a week they double the housekeeping credits charged so that you end up running out of them and have to buy more from them.
In the beginning we could get guest registration without paying extra. Now there’s a charge.
We haven’t been able to get dates we want fora couple years so we deposited the points in RCI. Simple enough and no fee, but in order to use our points we have to pay RCI over $200.00 to use them.
I could go on and on but it’s making me have chest pains.
Please add me to this. We have the Wyndham time share and there’s never any availability! I just tried to book 6 months out or 9 and still can’t get into certain places. Now I see they have added new properties and if you have silver membership you’re not even allowed to book at these new properties!