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Mass. AG Turns Up Heat on Morgan RV Resorts
Posted By RVBusiness On September 12, 2011 @ 5:07 pm In Breaking News | 1 Comment
Massachusetts Attorney General Martha Coakley has obtained a preliminary injunction prohibiting the owners of a manufactured housing community from continuing allegedly intimidating sales tactics.
According to Legalnewsline.com, Morgan RV Resorts LLC and its sales team allegedly used intimidating tactics to charge homeowners excessive fees for a questionable membership club in order to stay in their homes at the Peters Pond housing community. Suffolk Superior Court Judge Paul E. Troy found that the state’s allegations that the defendants violated the Consumer Protection Act held merit and granted the preliminary injunction.
Last month, Coakley filed an enforcement action against Morgan and its sales team for allegedly violating the Massachusetts Manufactured Housing Act and the Consumer Protection Act by using intimidating sales tactics to force manufactured homeowners at Peters Pond in Sandwich to pay thousands of dollars in additional fees to remain in the community and avoid losing their homes.
Coakley’s complaint alleges that Morgan sales people threatened homeowners that if they did not join a new membership program and pay up to $16,000 in membership fees, their manufactured homes would be removed from their sites. Nearly 100 homeowners allegedly paid to join the club out of fear that they would lose their homes.
The preliminary injunction prohibits Morgan and its sales team from collecting or soliciting membership fees from homeowners for the alleged membership club and from destroying any information or documents. The order also requires Morgan to place all collected membership fees in an escrow account and provide Coakley’s office with a record of fees collected and any inquiries concerning Peters Pond membership programs on a monthly basis.
Coakley’s lawsuit seeks the recovery of monies that Morgan allegedly collected improperly for the club membership as well as penalties for violations of the Consumer Protection Act and the Manufactured Housing Act. The lawsuit also requires that Morgan obtain proper licensure and cease all deceptive and unfair conduct.
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