It is being reported that Wyndham Vacations Resorts and its real estate broker have been hit with the penalty stick after being accused of failing to adequately supervise timeshare salespersons.
A report from Pocono, US, states that Wyndham Vacations Resorts were telling timeshare consumers that they could sell their timeshare back which was an un-truth.
The Real Estate Commission has fined Wyndham Vacation Resorts of Shawnee-On-Delaware and broker Craig Roberts of Stroudsburg a total of $15,000.
According to the recent report, several different Wyndham salespersons “informed” a Philadelphia couple who bought three timeshares from 2009 to 2011 that if they later decided they did not want the timeshares, “Wyndham would agree to buy the property interest back after two years as part of a ‘buyback’ program.”
In reality, that statement conflicted with written terms that said Wyndham “does not currently offer a buyback program or provide resale assistance.”
The disciplinary action was filed against Wyndham Vacation Resorts and Roberts in August 2014. It is said to have detailed all three timeshare sales to Edward and Kathleen Hume, but the settlement covers only one of those sales, a timeshare interest in an Orlando, Fla., condominium the Humes bought in 2011.
According to the settlement, Wyndham did not offer a buyback program at the time of the sale.
Kathleen Hume declined to comment.
The commission alleged that both Wyndham and Roberts failed “to adequately supervise the activities” of their salespeople.
Wyndham Vacation Ownership of Orlando, the parent company of Wyndham Vacation Resorts, said in a statement:
“While we deny the allegations as stated in the complaint, we are committed to ensuring our sales practices are compliant with all regulatory requirements while striving to meet the highest standards of fairness and transparency, and continuing to look for ways to make the buying process more consumer friendly.”
In the settlement, Wyndham Vacation Resorts said it;
“takes sales compliance very seriously and has a robust compliance program in place.” It said sales associates are given a policy manual and take an online training course, and that Wyndham uses a “mystery shopping program” to make sure salespersons are following the policies.
The commission suspended Roberts’ license to practice as a real estate broker for at least two years, but stayed the suspension in favour of probation if he meets certain terms, including not acting as the broker of record for more than one broker at the same time.
The settlement also requires Roberts to complete at least 30 hours of remedial education on real estate brokerage and office management.
Disciplinary cases with the commission, which falls under the Pennsylvania Department of State, are pending against three salesmen involved in the timeshare sales to the Humes.
This isn’t the first time consumer protection authorities have questioned Wyndham’s timeshare sales practices.
Last May, the Wisconsin Department of Agriculture, Trade and Consumer Protection reached a settlement with Wyndham Vacation Ownership to resolve complaints related to timeshare sales.
According to court records, the department investigated 113 consumer complaints between March 2008 and October 2013 that alleged Wyndham “followed unfair trade practices.”
The department alleged Wyndham violated Wisconsin law in several ways, including making representations that were inconsistent with the purchase contract, misrepresenting the resale value of a timeshare, and representing a timeshare as a financial investment.
In the settlement, Wyndham did not admit violating any laws or regulations. Wyndham paid about $665,000 in restitution to 29 consumers. That included forgiving debts of some customers and rescinding some timeshare contracts.
It also paid about $162,000 in fines, fees and investigative costs.
The Better Business Bureau has received about 1,700 complaints against Wyndham Vacation Ownership in the past three years.
“BBB files indicate that this business has a pattern of complaints concerning misrepresentation in selling practices,” the report says. “Consumer complaints report that the verbal representations are inconsistent with the written agreement.”
I reviewed some of the most recent complaints and one filed by a woman in November alleged she was told “Wyndham would buy back the timeshare if I ever needed to sell it. This option was critical to my decision to buy the timeshare and now that I need to sell it, I was told there never was such a policy.”
In its response to that complaint, Wyndham Vacation Ownership told the BBB that the customer, who was not identified, “was never presented nor mentioned any buyback program as this program is no longer existent and was available for a limited time.”
When you’re buying property, or an interest in a timeshare, get all of the terms in writing before signing the contract. Don’t rely on what you’re told. If there’s a conflict between what you are told and the written terms, sort it out. You also should consider having an attorney review the terms.
Wyndham and Roberts settled the investigation without admitting or denying the allegations.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk