Wyndham Carriage Resorts – No Responsible Exit

October 25, 2019

Views: 13

By Irene Parker

The Wyndham Carriage Hills annual meeting was almost held October 21, 2019, in Ontario, Canada. The Carriage Ridge annual meeting was held October 22. The  October 21 annual meeting was cancelled because the facility could only hold 300, but over 1,000 owners showed up for the meeting. Owners were annoyed, but felt the chaotic debacle was the best message they could have sent.

The reason for the robust attendance was because the Carriage Board of Directors had notified Owners that the board had retained the strategic accounting firm BDO Dunwoody to study the two-fold problem of no responsible exit allowed, that resulted in escalating bad debt. Owners, even those with severe medical and financial hardship, had not been allowed a release from their fully paid for timeshares. They were liable for ongoing annual maintenance fees, as well as their heirs. Kid and grandkids were pursued for delinquent maintenance fees.

At the Carriage Ridge Oct 22 annual meeting, not much new news was provided other than a statement concerning early stage negotiations between the two Carriage Boards of Directors and BDO Dunwoody. Board President Marti Ginsherman reported that information as to actual proposals and desired outcomes would not be made available until first quarter 2020.

The U.S. timeshare lobby ARDA maintains a Coalition for Responsible Exit website, but Carriage resorts are not eligible, despite Club Wyndham promently displayed on the website. Some previously independent resorts purchased by Wyndham still have the final say concerning exit options. Wyndham does not charge for their Certified Exit program for other Wyndham resorts, but ysually, there is a charge to voluntarily deed back the timeshare points or deed IF the resort will accept a deedback. For more than a few resorts, that’s a big if. Some U.S. resorts are still resistant to any form of exit except foreclosure.

The Canadian counterpart to ARDA is CVOA. They are aware of the dilemma Carriage owners face, responding that a solution will require time and considerable resources. Those considerable resources include the strategic accounting firm BDO Dunwoody, who will work with a Transition Team to address problems and solutions.

At the October 22 Carriage Hills meeting, Carriage Ridge board secretary/treasurer Maureen Lee Ah Yen volunteered to head the Transition team and Carriage Ridge owners Lori Smith and Bruce Fleming volunteered to act as liaison between owners and Transition Team board members.

The most glaring example of need for a medical and hardship release concerns Stephanie’s grandparents, Gary, and his wife of 53 years Sandra. Gary resides in a nursing home and Sandra lives with her unemployed son. Gary’s entire pension must go towards his care. Sandra suffers from depression, and the worry over finances contributed towards a recent hospital stay.

Published marketing materials provided at the time of purchase stated:

• Freeze costs of future vacations
• Equity $ position
• Worry free vacations

Maintenance fees have increased from $600 a year to $1,500 over the years. Owners feel they do not have worry free vacations as the absence of an exit strategy has caused significant stress for many. In addition, thousands of dollars have been lost to timeshare exit providers and timeshare listing services.

Carriage Resorts were acquired by Shell Vacation Club and subsequently Wyndham acquired Shell. No doubt the argument will be that current owners are not responsible for the original developer’s marketing claims. That does not change the unfairness of owners finding themselves held timeshare hostage.

On Monday Carriage Hills Owner Karen Levins will offer her comments on the current situation and hope for the future.