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[ Thread is unlocked ] Megarenter Rap Lawsuit

Eric B

TUG Member
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Jun 10, 2017
Messages
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Resorts Owned
Massanutten, Wyndham, WorldMark, Vistana, Marriott Los Sueños, Vidanta, Flora Farms, HGVC Max, and some independents
Same article incase it's removed from online:

"Just you wait, we’re gonna figure it out. We’re gonna put you outta business and surely make you pout.”

Those lines come from “the Megarenter rap,” written by an employee of the Wyndham network of timeshare resorts, and it points to a conspiracy among the company’s executives to penalize timeshare owners too successful at turning their points into profits, according to a lawsuit filed in Orange Circuit Court in Orlando.

Yvonne and Kenneth Klebba of Michigan originally sued in 2014 but filed the most recent amended version of their complaint in July.

Discovery in the case produced the email featuring “the Megarenter rap,” as Wyndham calls it in court documents, allegedly written by an employee identified as Melissa Amado. No other information about the rap was available.

The Klebbas began purchasing ownership in Wyndham’s timeshare plan in 2001 and have acquired more than 67 million points in Wyndham’s system, the lawsuit claims. Points are how owners reserve vacation resort rooms at Wyndham properties around the world.

According to the complaint, the plaintiffs were lured into buying points with the promise that they could rent them out to generate income, allowing non-timeshare owners to stay at Wyndham resorts.

Support from the company would include allowing owners to sell and transfer points they could not use before the end of the year, have their names on several reservations and keep points even if reservations were canceled, and other perks specific to VIP owners, according to the complaint.

Wyndham became concerned that owners such as the Klebbas and other “megarenters” were cutting into the larger business model of attracting new owners, the complaint alleges. One consulting group allegedly told Wyndham that disrupting the business of megarenters could bring in an additional $2.5 million per year, according to the suit.

“Ms. Klebba’s actions are an apparent attempt to operate a commercial rental business in violation of clearly disclosed rules prohibiting such conduct,” an unnamed spokesman for Wyndham said in a statement. “We believe her claims are without merit and we will continue to protect our timeshare owners from those who would seek to profit at their expense.”

In about 2008, Wyndham leadership secretly developed its “Megarenter Strategy,” a plan to disenfranchise owners such as the Klebbas, the suit claims. This allegedly included training call center staff to delay bookings by megarenters, using software that would make multiple bookings more difficult and enforcing guidelines in a more strict manner.

Additionally, the complaint claims the company took away a variety of VIP benefits, such as unlimited free guest certificates that saved them on fees. They also closed “loopholes” that the plaintiffs allege had been promised to them as benefits at the point of sale, including getting a VIP discount for rooms that had been reserved, canceled and rebooked.

In 2020, Wyndham canceled a “significant number” of reservations made by the plaintiffs, saying they violated the company’s policy on “engaging in commercial activity,” according to the complaint. But commercial activity was the reason the Klebbas were told to buy the points in the first place, the suit says.

In March, the complaint alleges, the company announced that guest reservations at key resorts during peak travel times “will be subject to cancellation,” and in June limited dates that were available for guest reservations, further restricting the value of the points the Klebbas purchased.

“In effect, Wyndham has eliminated Plaintiffs’ ability to rent accommodations on weekends and holidays at many resorts,” the complaint says.

The lawsuit contends that Wyndham’s practices violate Florida’s Vacation Plan and Timesharing Act among other statutes and are asking for unspecified compensatory damages, legal fees and other costs.
 
If my math is correct, and someone please check it, using $6/1000: 67,000,000 points at $6/1000 points comes to $402,000 a year in maintenance fees. Is this correct? Can this be possible?
 
If my math is correct, and someone please check it, using $6/1000: 67,000,000 points at $6/1000 points comes to $402,000 a year in maintenance fees. Is this correct? Can this be possible?

Your math is correct, though I think the $6 would include the program fees, too, if they did it right. If they were able to rent them for $10/1000 that would be $268K/year above the fees.
 
If my math is correct, and someone please check it, using $6/1000: 67,000,000 points at $6/1000 points comes to $402,000 a year in maintenance fees. Is this correct? Can this be possible?
Monthly $33,500
 
Assuming an average points per reservation of 150k per transaction - that would equate to 467 rental reservations that were denied to actual Wyndham owners.


Sent from my iPhone using Tapatalk
 
Are they hoping to squeeze money out of Wyndham with a settlement on a nuisance lawsuit?

We've owned since 2002 under Fairfield and the part about personal use, not for commercial purposes, was in the paperwork we signed every time we bought more points. As was the part about VIP benefits could be changed at any time.

I sure wish I kept all of our old directories and supplements to them but I didn't. I thought OP posted that the commercial renting clause was absent from one directory but I never checked to see if it was in the supplement to that directory. I'm assuming the oversight was corrected and it was.

The only vulnerability I is see here on Wyndham's part is if they appear to be selectively enforcing the no commercial renting. I go back to what the attorney for the HOA where we live told my husband when he was the board president. There was something in our bylaws that hadn't been previously enforced but became necessary to do so. The attorney said as long as they announced that it would henceforth be enforced and there was no selective enforcement they were okay.

Some people are still actively engaged in renting as is obvious if you look on eBay and the other sites people use. I only looked on eBay and only looked at two resorts. There's an awful lot of listings for stays that are on the black out lists. Perhaps those owners will be getting a letter from Wyndham. Perhaps their plan is to make every dollar they can up to the very last moment it's no longer possible.

The outcome I expect from this b.s. lawsuit and the owners still very actively engaged in commercial renting is this. Wyndham will be making additional changes and these changes will have some real bite to them. Every single owner will be impacted if Wyndham does what I think they will.
 
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Wish these people would just go away... they had their free ride. Time to figure out some other scam.
 
Assuming an average points per reservation of 150k per transaction - that would equate to 467 rental reservations that were denied to actual Wyndham owners.


Sent from my iPhone using Tapatalk

It might not be a popular point of view, but they were actual Wyndham owners who claim they were using the reservation for the purposes that Wyndham Sales encouraged them to buy the deeds for. I'm not falling on their side of the dispute (nor Wyndham's, to be frank), instead I'll just be interested to watch from the sidelines and see what happens. IMHO, the restriction on rentals that Wyndham should have had all along would be that you can rent what you own rather than what you reserve through Club Wyndham. That works elsewhere and avoids people gaming the system (at least to some extent) by owning someplace with inexpensive MFs and booking for rental purposes someplace else that will turn them a profit. That's the major weakness in the Wyndham system and I don't believe the current updates do anything to address it.
 
Wish these people would just go away... they had their free ride. Time to figure out some other scam.

Just in case I forget on Tuesday, Happy Anniversary of the day you joined TUG as a guest!
 
Just in case I forget on Tuesday, Happy Anniversary of the day you joined TUG as a guest!

Your incessant rambling about my "guest" status isn't going to change that. If the website owners wanted this site to be exclusively pay to join, that's their prerogative. It's not something you, as a paying member, have any say in...

It does in a kind of creepy way seem like you are stalking and harassing me though...
 
It might not be a popular point of view, but they were actual Wyndham owners who claim they were using the reservation for the purposes that Wyndham Sales encouraged them to buy the deeds for.

Wyndham isn't encouraging anyone to buy resale, ever. And it's pretty clear the plaintiffs had tens of millions of resale points. Even the most butthurt mega renter can't claim such ridiculous things.
 
Your incessant rambling about my "guest" status isn't going to change that. If the website owners wanted this site to be exclusively pay to join, that's their prerogative. It's not something you, as a paying member, have any say in...

It does in a kind of creepy way seem like you are stalking and harassing me though...

Troy, to be perfectly honest, I do not care if you pay to join or continue to enjoy the "free ride" of being a guest. I have noticed a tendency in some posts to comment on others getting a "free ride" elsewhere and I find those to be in a bit of tension with each other. Since my posts seem to bother you, I'll add you to my ignore list.
 
The only vulnerability I is see here on Wyndham's part is if they appear to be selectively enforcing the no commercial renting.
Yes, what defines commercial activity? If I'm given 15 GC and use 16 GC's, am I now a commercial activity. Where will they draw the line?

Wyndham will once again make changes and these changes will have some real bite to them.
The change coming this month has real bite as it relates to anyone with resale points. I only have 168K in resale which I'll probably get rid of as I can't see managing, what will seem like, 2 accounts long term. It will just be a hassle.

Wyndham will buy them out and make them go away, OR, bleed them dry with Attorney Fees and MF's.
 
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Troy, to be perfectly honest, I do not care if you pay to join or continue to enjoy the "free ride" of being a guest. I have noticed a tendency in some posts to comment on others getting a "free ride" elsewhere and I find those to be in a bit of tension with each other.
I second this opinion. Criticizing one person for taking a free ride while taking a free ride is just not right.
 
Wyndham will buy them out and make them go away, OR, bleed them dry with Attorney Fees and MF's.
Wyndham won't buy them out. In fact, they'll do the opposite. Wyndham may go as far as to make them pick up Wyndham's legel fees and court costs. Wyndham will make an example out of them. I know something, but can't share it at this time.
 
I know something, but can't share it at this time.
Do share when the time is right. Your scenario is certainly possible.
 
I second this opinion. Criticizing one person for taking a free ride while taking a free ride is just not right.

Great straw man argument...

Please let me know how my "free ride" here at TUG is preventing anyone else from joining... or participating.

Meanwhile the Mega Renters ARE preventing regular owners from using their timeshare. This is an undebatable fact. But yes, please continue your fantasy comparison. It's a great look for you.
 
Wyndham won't buy them out. In fact, they'll do the opposite. Wyndham may go as far as to make them pick up Wyndham's legel fees and court costs. Wyndham will make an example out of them.

That's probably why they dropped the lawsuit before...
 
Please let me know how my "free ride" here at TUG is preventing anyone else from joining... or participating.
It's not and that is not the point. As we all know, while not defending a mega-renter, they were not taking a free ride, as you frequently contend. You have had the same participation rights that they have had. On TUG, you are truly participating, big time, for free.
 
Meanwhile the Mega Renters ARE preventing regular owners from using their timeshare. This is an undebatable fact.
You are entitled to your own opinions but you are not entitled to your own facts. EVERY owner has the exact same timeshare usage rights at 12AM Eastern, 13/10 months out. NO one is preventing an owner from using their timeshare.
 
Great straw man argument...

Please let me know how my "free ride" here at TUG is preventing anyone else from joining... or participating.

Meanwhile the Mega Renters ARE preventing regular owners from using their timeshare. This is an undebatable fact. But yes, please continue your fantasy comparison. It's a great look for you.
When wyndham resells the mega renters 700 million points, you will have 2000+ regular owners booking those points so no additional inventory will open up.

I guess you could purchase and pay Mf on those 700 million points and not book anything in order to allow more regular members to use their timeshares.
 
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