RV resort to pay $200,000 in settlement on "membership" cheat

photo: steakpinball on flickr.com

A Massachusetts RV resort company has accepted a $200,000 settlement after burning its membership owning customers after using what the state's Attorney General termed, "Unfair and deceptive practices."

Owners of Peters Pond RV Resort threatened residents they would lose their sites in the RV park and be forced to move without financial compensation if they didn't knuckle under and buy a new $16,000 membership in the resort. Defendants who settled up in a lawsuit include Peters Pond RV Resort Inc., Morgan RV Resorts LLC, Ideal Private Resorts LLC and Robert Moser.

The state's attorney says the company "strong armed" retirees after the customers invested in park model RVs for the sites near Sandwich, Massachusetts. While the rigs are owned by the customers, the actual RV park lots are leased--which residents thought they could lease indefinitely, provided they kept up with rent payments and lived up to the resort rules. The defendants told tenants if they didn't buy into the new "membership" and additionally fork over $6,000 in annual fees, they'd be out of the park.

Fearing the worst, over 100 residents signed up for the club; when some later tried to sell out, it is said the defendants utilized brokers to "assist" with the sales, who charged a $2,000 transfer fee.

As part of the settlement, the defendants will have to pay refunds to those who bought into the membership deal, must allow customers to chose an appropriate broker for sales, and may no longer pursue the alleged unlawful sales practices.