Travel + Leisure agreed to a $975K settlement with the U.S. Securities and Exchange Commission over allegations that the timeshare company misled investors about two undisclosed projects affecting certain performance measures. According to the SEC complaint filed in a Florida U.S. District Court, between October 2019 and February 2021 the company removed delinquent or in-default loans from its timeshare loan portfolio through the right of rescission rule. The 2,900 loans removed from the portfolio totaled roughly $77M in loan balances, including about $34M of defaulted loans, and were reversed in its accounting system as if the loans never existed, which the SEC says materially improved its publicly disclosed loan loss provision and loan loss provision percentage. The complaint also alleges the company set internal targets for the number of delinquent and defaulted loans it needed to rescind to meet its publicly disclosed guidance for the loan loss provision percentage, presenting a materially misleading picture of the performance of its loan portfolio. Travel + Leisure agreed to the $975K civil penalty without admitting any wrongdoing, and the company has not yet responded to Seeking Alpha's request for comment.
Travel + Leisure CoTravel + Leisure agreed to a $975K SEC penalty over misleading loan-loss disclosures tied to undisclosed loan rescissions.
