NEWARK
– A Cape May County campground, accused
of failing to tell mobile home owners it
would take half the profit when their mobile
home was resold, plus a 10 percent sales
commission, has agreed to pay restitution
to affected consumers, under terms of a
settlement reached with the New Jersey Division
of Consumer Affairs.
Driftwood
Camping Resort, Inc., which does business
as Driftwood Camping and RV Center (“Driftwood”),
will pay $38,400 in restitution to five
consumers. The campground also has agreed
to pay restitution to additional consumers
who file complaints with the Division of
Consumer Affairs within the next 90 days,
unless it provides proof that the complainants
were notified about the terms for resale
of their mobile homes.
Driftwood
also agreed to adopt certain business practices
under the settlement. Prior to selling a
mobile home unit, the company will provide
written notice of all sales policies and
fees in effect at the time of the sale.
The company may continue to charge commissions
when consumers re-sell their mobile home
units, so long as the company has given
each consumer notice of those commissions.
“This
case underscores why consumers must get
all contract terms in writing and then keep
the contract and all addendums safe and
secure. The alleged failure of Driftwood
to provide disclosure to consumers cost
mobile home owners thousands of dollars
when they resold their units,” Attorney
General Paula T. Dow said.
The
restitution for the five consumers covered
by the Consent Order with Driftwood ranges
from $4,400 to $10,400.
A
total of $32,210.40 was assessed against
Driftwood by the Division of Consumer Affairs.
Driftwood will pay $17,210.40 to reimburse
the state’s legal and investigative
costs. The balance represents $15,000 in
civil penalties and is suspended but payable
if Driftwood does not meet the terms of
the Consent Order over the next 90 days.
“This
settlement is a victory for the consumers
who suffered financial harm through Driftwood’s
unsavory business practices,” Thomas
R. Calcagni, Acting Director of the State
Division of Consumer Affairs, said. “Our
message to consumers cannot be overstated:
Before you sign a contract or make a down
payment, demand all the terms in writing
and be sure to read the fine print. If a
business refuses to give clear information,
walk away.”
Consumers
who wish to file a complaint against Driftwood,
or who believe they have been cheated or
scammed by any business, can file a complaint
with the State Division of Consumer Affairs
by visiting its website, www.NJConsumerAffairs.gov,
or by calling 1-800-242-5846 (toll
free within New Jersey) or 973-504-6200.
Deputy
Attorney General Frank J. Marasco in the
Consumer Fraud Prosecution Section represented
the Division of Consumer Affairs. Investigator
Patrick Mullan in the Office of Consumer
Protection led the investigation of this
case.
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