Wyndham Vacation Resorts Inc. in legal battle over ‘virtually worthless’ timeshare memberships
Federal judge in Delaware rules in Wyndham Vacation Resorts Inc. case based on Nevada Deceptive Trade Practises Act (NDTPA)
Claims against Wyndham
Plaintiffs Steven and Elizabeth Kirchner and Robert Weston brought cases against Wyndham alleging that the timeshare giant failed to tell potential buyers that their timeshares have ‘little if, any, resale value.’ The Kirchners and Weston also claim that Wyndham timeshare owners are subject to hidden fees, booking availability issues and various other failures.
The plaintiffs say Wyndham neglected to explain that buyers would be unable to refinance their timeshare purchases and seek a lower rate than the ‘prohibitive’ Wyndham interest of 15.9%. They additionally claim they were not informed that the annual fees could rise so rapidly, that the company overbooks/oversells units and that reservations must be made over one year in advance. Kirchner and Weston also argue that Wyndham railroads customers into signing contracts quickly, without giving time to read the contractual fine print.
The judge’s response so far
On 27th March 2023, Delaware District Judge Richard Andrews rejected claims based on the NDTPA, agreeing with Wyndham that timeshares cannot be be considered goods or services regulated by this law. However he also expressed that was not too late to bring claims of fraudulent inducement by omission and violations of the Tennessee Timeshare Act against the company.
Judge Andrews ruled that these fraudulent inducement by omission claims fell within the 3 year statute of limitations, and that therefore the claims may continue.
The case plaintiffs began their legal action in 2020, citing that Wyndham ‘failed to disclose a series of problems and limitations’ with their timeshare contracts in order to facilitate sales.
Wider implications
Wyndham has around 925,000 members, and generates an annual revenue of $5 billion operating around 25,000 units at 220 resorts according to the plaintiffs. They go on to say that the average cost of a Wyndham membership is around $21,000
“If the Kirchner/Weston action is successful,” comments Andrew Cooper, CEO of European Consumer Claims (ECC), “it could potentially open the door to a significant volume of similar claims against Wyndham and other US based timeshare operators.
“Many timeshare owners in the US, as well as Europe and elsewhere are unhappy with the way they have been sold and disappointed with how their memberships have impacted their lives.
“Currently ECC can help discontented members escape burdensome memberships worldwide. In some countries we are even already able to help victims claim financial compensation.
“We will be watching developments in this Wyndham case with interest.”
To discuss your options regarding an unwanted timeshare get in touch with our team at ECC.
Related links
- 10 hidden facts timeshare owners wish they had known before buying
- European Consumer Claims
- ECC contact page
- Judge Trims Suit Claiming Wyndham Hid Timeshare Fine Print
- Out of control timeshare maintenance fee hikes: A case study interview
- Timeshare availability poll reveals less than 1% of owners always able to book their preferred holidays
- Timeshare manipulation tactics: How people are influenced to buy on the day
- UCF study shows 85% of timeshare owners are unhappy with their purchase
- How to escape a US timeshare
- The timeshare availability problem
- Who is Andrew Cooper? Meet the CEO of European Consumer Claims
- Interview. One man’s timeshare claim journey
Regions
ECC provides timeshare claims services, expert advice and help
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Andrew Cooper background article can be read here
Relevant websites for this article
www.timeshareadvicecentre.co.uk
First published on MyNewsDesk April 2023