Travel + Leisure has agreed to pay $975,000 to resolve a Securities and Exchange Commission case over the way it described the performance of its timeshare-loan portfolio. The proposed settlement remains subject to court approval.
The regulator alleges that, between October 2019 and February 2021, the company used two undisclosed projects to remove thousands of delinquent or defaulted customer loans through rescissions. More than 2,900 loans carrying about $77 million in balances were removed, including roughly $34 million already in default, according to the complaint.
The SEC says those transactions improved publicly reported measures of expected loan losses and made the portfolio appear stronger than it was. It further alleges that internal targets were set for the number of loans to be rescinded so that published guidance could be met.
Travel + Leisure consented to a permanent injunction and the civil penalty without admitting or denying the allegations. The agreement does not become a final judgment unless the federal court in South Florida approves it. The SEC’s official case notice links the complaint.
