I’m Mad as Hell
and I’m Not Going to Take it Anymore!

Class Action Lawsuit?

There comes a time in the life of us “Geezers” when we’ve had enough.
Someone harasses us until we’re not afraid anymore. We fight back...

Some jerk is telling me I have to send his company money every year - until I die.
How very absurd!
Does my membership contract say that I have to? NO!

What does my contract say they can do if my annual dues are not current?
Says that I can’t use their facilities. That’s all!

The camping club is harassing me now - threatening me.
Trying to “extort” money from me unfairly.
Demanding that I send them money every year “Until I Die”!

They are making their threats over the phone, via the US mail, etc. They are making their threats and working their scheme across state lines. Doesn’t each of these suggest that the Federal Government might have the jurisdiction and responsibility to stop their schemes?

They seem confident that their support for local politicians and affiliations with national lobbyists will isolate them from prosecution.

They seem confident that their assets are sufficiently hidden/protected - if someone DOES win a “Class Action Lawsuit” against them.

At what point does their “Abuse” become not just a civil offence - but a “Criminal” act that requires time served?

Perhaps it’s time now to “Fight Back”?

— Call to Action —
YOU ARE THE KEY.

SEND US YOUR INFORMATION NOW...
Send us the following information
[ Click Here to add your complaint to our possible class action lawsuit. ]

— even if you’ve filed a complaint in the past.

We will let you know in this newsletter and on our web sites when this activity leads to formal action.

Dan Hopper, NAM

Bankruptcy
and the Campground Member

Bankruptcy Fraud?

What is the biggest asset of a bankrupt campground or camping club?

Not the campground(s). Not the equipment. Not the unpaid “initiation fees.” It is, emphatically, the list of dues paying members!

It is ironic that, in a bankruptcy, no camping club or campground identifies the membership list as an asset in their bankruptcy filings. Why? This list is a qualified marketing tool that is valuable to other camping clubs and campgrounds.

Too often these ‘members’ are passed from campground to campground as though the ‘members’ were the private chattel of unscrupulous operators. The members are told that they must continue to pay their annual dues, often at higher rates, to campground after campground.

The “true nature” of the campground membership list is either concealed from or misrepresented to the courts.

Are “Unpaid Initiation Fees” Assets in a bankruptcy?

We submit that this is true ONLY if the campground survives the bankruptcy intact. All considerations that induced you to purchase the membership must remain to your benefit if you are to be expected to pay the balance of your “Initiation Fees”.

A Campground is a Campground — NOT!

Every campground is unique. They are not interchangeable, as some bankruptcy courts have been led to believe. It is neither proper nor acceptable for memberships to be arbitrarily assigned from one bankrupt camping club/campground to another without the member’s permission. The unique qualities and locations of specific campgrounds was a deciding factor in the member’s decision to purchase a membership. (You purchased a membership in what you considered to be a “Cadillac Campground”. Who, even a court, has the right to decide that a “Kia” or “Honda” campground should have equal value to you?)

Membership Campgrounds Owe Future Services

Members are CREDITORS in the bankruptcy. Members are entitled to future services promised at the time of purchase – or a refund of the fees paid for those services.

Who Represents the “Members” in a Bankruptcy?

Certainly not the bankrupt campground. Not the court. Not the other creditors. (Yes, “other” creditors.)

Campground members are creditors in the bankruptcy of a campground. The campground owes members future services that they probably cannot deliver. Members’ interests in a bankruptcy are unique and separate from every one else involved in a bankruptcy. What is the value of these undeliverable services that should be recovered by the members? Campground members should be “Priority” creditors in the bankruptcy.

Members should quickly establish a “Committee of members” to act on their behalf very early in the bankruptcy. This Committee should seek to convince the court to establish a separate “Creditor’s Committee for Members” of the Bankrupt Campground. It would be wise to ask a local attorney to help with this effort. If successful, the fees for this attorney will be paid from the assets of the bankruptcy. Members often know things about the assets of the bankrupt campground that others will be reluctant to reveal to the court.

Lifetime Membership Does NOT Equal Lifetime Dues

Some campers are promised, at the time of sale, that they will never have to pay another ‘Initiation Fee’ if they will advance an additional few thousand dollars. This is sometimes referred to as a ‘Lifetime Membership’. None are told that they will be expected to pay annual fees UNTIL THEY DIE or convince someone else to do the same. Some courts have ruled that such an alleged commitment would be against public policy and not permitted. Any victim of this scheme should fight back. We have posted some tips on this web site.

Get Angry - Fight back!

File formal written complaints with:

1. The US Federal Trade Commission:
   US Federal Trade Commission
   Re: Unfair/Illegal Practices Across State Lines
   600 Pennsylvania Avenue N.W.
   Washington, D.C. 20580
   Contact the FTC
   or click this link:ftc.gov/ftc/cmplanding.shtm

2. The Attorney General of your state [ Click Here ]

3. The Attorney General of the states where they do business

4. The US Postal Service:
   US Postal Service
   Re: Using Mail to Fraudulently Extort/Harass
   CRIMINAL INVESTIGATIONS SERVICE CENTER
   ATTN: Mail Fraud
   222 S. Riverside Plaza STE 1250
   Chicago, IL 60606-6100
   www.usps.com/postalinspectors/fraud

Never threaten or bluff - just DO IT!

How to Complain to the Authorities

and get action...

Your complaint will get a ‘quick look’ by a staff person.
They need a quick, short answer to these questions if you want them to help you:

1. What is your ‘REAL’ complaint and is it really a contract dispute that should go instead to an attorney?

2. What financial or other loss have you suffered because of the problem?

3. What have you done to try to resolve the problem?

4. Why should the people you are complaining to take action?

Don’t be timid! You deserve an answer and you deserve help.

The Campground Membership Dilemma

Barbara Bowen, NAM President

September 2005 - There is an element of organized crime that detracts from the total RV Life experience for retired members of our society. Help us eliminate that element so seniors can enjoy their retirement safely. Report the scam artists to your Attorney General, to the Federal Trade Commission, and to NAM. File official complaints. We’ll help you do it.

Be sure your friends, neighbors, and your children are prepared and can protect themselves from this kind of fraud. Pass the word on to others...

The following are typical excerpts from threatening letters sent to elderly campground members who, for various reasons, needed to end their relationship with the campground. Note that the “Contract Fee” or “Initiation Fee” in each case is paid in full! The scam artists want additional “Annual Dues” payments until members actually die:

• “Since it is apparent that you have no intent to honor your contract I am prepared to recommend that we litigate this account against you, report the account to the credit bureau, and have you summoned to appear in the appropriate county court with jurisdiction over this matter. I will be contacting your county property tax assessor to determine the legal description of all real property owned by you for the purpose of a lien should we win a judgment against you. I will also be obtaining a credit report to determine any bank accounts, automobiles, etc. that you own. Per your contract, we will add collection costs, attorney fees, and court costs to the amount we ask for in court.”

“The membership services department has received your request to cancel your membership based upon a medical and financial hardship. Unfortunately, we cannot cancel your membership until we receive the following information:

1. A written description detailing your medical condition and the impact that it has on your financial well being;

2. A letter, from your physician, detailing your medical condition and its impact on your ability to utilize your membership;

3. A description of your current income, expenses, and assets and a description of how you are unable to continue your membership obligation(s); and

4. Proof that you have attempted, for at least a period of six (6) months, to sell and/or transfer your membership.”

How long MUST we pay dues and maintenance fees for a campground membership? Is it really a legal contract if it has no ending date? Can our children be forced to pay annual maintenance fees after we are no longer able to do so? How many times can a campground change hands, file for bankruptcy or change owners before we are no longer obligated to pay the fees?

There are important unanswered questions about this relatively new business. It is not always obvious that existing “Consumer Protection Laws” also apply to the membership campground situation. Most people do not know where to turn for help because of the complexity of this multi-state industry. More often than not we hear RVers discussing various scams and the comment is “Oh, so you got stung by that one too!”

It’s time to join forces and try to stop the unscrupulous practice of taking advantage of our seniors! Together we can make a difference.

The National Association for Members of Campground Resorts, Condominiums and Timeshares (NAM) is a non-profit organization founded on August 20, 1997 to help members organize in order to have their voices heard at all levels of government and by resort owners and developers. We publish a quarterly newsletter and maintain a web site at www.natlassoc.org. where you can file complaints with the US Federal Trade Commission, Attorneys General in several states, and with our organization.

Barbara Bowen
NAM President
Contact Barbara by email. [ Click Here ]

Top of This Page

THINGS YOUR COUNTY PROSECUTOR NEEDS TO KNOW

You went to a sales meeting to join a camping club. They told you what the “Initiation Fee” would be for a membership limited to a certain period of time and that you would have to pay an annual “Maintenance Fee”. They also told you that you could avoid any future initiation fees if you would pay an additional few thousand dollars. They called it a “Lifetime Membership”.

They told you that: “If you fail to pay the annual dues - you would not be allowed to use the camping facilities.” To you, this meant that you could terminate your membership by simply stopping the annual dues payments.

Years later, you found that you either could no longer go camping or for reasons of your own - you did not want to be a member. Your annual dues were up to date. You either called or mailed them a letter stating that they should cancel your membership and that you would no longer be paying annual dues.

So far - so good.

Then they started harassing you and demanding additional money. They told you that you had a “Lifetime Membership” and that you had to continue paying annual dues “UNTIL YOU DIE!” That’s not what they said at the sales meeting.

They threatened to ruin your good name, your credit rating. They threatened to sue you and take your car, your RV, your bank account, etc., if you do not pay all of your life.

Ask your county prosecutor: “Why aren’t these crooks in JAIL?” You live in his/her jurisdiction and you are being victimized. What is that office going to do to protect you from this kind of “Extortion”?

Solving the Membership Campground Problem…

This is important... Tell you legislators...

Now is the time to “Make a Difference”

Jun 2003 - You can help! Send a copy of this article to every “State and Federal lawmaker” you can. Do it NOW. This is the time for you to become active in protecting yourself, your fellow campers, and your children!

1. Although some states have adopted Campground Membership Acts, the law is not tight enough. It gives the Operator the option of posting bond OR putting a non-disturbance clause in the deed. Most choose the non-disturbance clause because once they milk the members; they don’t care about foreclosure or what happens to the land. Practically speaking, the non-disturbance clause does not ensure continued services and facilities to the members. As we saw in Iowa, a simple foreclosure and quiet title action excised the non-disturbance clause and the land was sold to developers.

2. There is power in numbers. People must organize and speak up (and loudly). Laws are motivated by votes. If we can show that there are a lot of consumers who are vocal and active, lawmakers will respond. Operators are small and usually lack influence. (Except maybe in Nebraska once upon a time.) But lawmakers need hard and provable facts. Anecdotal information is compelling, but they need to know that it is a widespread problem.

3. The law needs to include clear provisions for cancellation of memberships. No more “you signed up for life, therefore you MUST pay.”  In addition, there needs to be very stiff penalties for abusive collection efforts. Perhaps there should be a presumption that if a member fails to make x number of payments or pay dues over x number of months (and has not used any of the campgrounds or other services) that it is presumed that the member has canceled his or her membership and the Operator can make no further efforts to collect dues.

4. There is a real problem with the sales tactics used and especially the concept of “Lifetime Memberships”. However, if the industry wants this privilege, there should be aggressive protections instituted. The best analogy is the Pre-Paid Funeral business (“PPF”). PPF encourages people to make their arrangements now, pay now, and not have to worry (your family) about it in the future. They are fully transportable between funeral homes. (That may be a problem with the campground industry). The biggest thing is that the money has to be accounted for and audited. In other words, you can accept the money, spend it thinking you will come up with it later when the time arises. In the campground business, if they accept “up front” payment, then they should be required to escrow all or part of those funds and only be permitted to make periodic withdrawal over a specific amortization period based on a weighted actuarial life-expectancy table of the members. This will ensure the availability of those funds over the period of time that they are supposed to cover.

5. Specific disclosure language is needed if “Guaranteed Buyback” is used. This is very misleading and gives false security to buyers. Again, either the operators must escrow funds for the buyback based on some formula, or otherwise purchase a fidelity bond.

   Douglas H. Napier
   NAPIER, WOLF & NAPIER
   Fort Madison, IA

   Here's where you can find out who your state legislators are. [Click on this link]

Top of This Page

DON’T BE A VICTIM
Here’s a way to FIGHT BACK !!

June 2003 - If you think you have been cheated by a membership camping scheme, you should file a complaint with the State Attorney General’s Office of Consumer Protection in the state(s) where it took place.

NAM has developed a form to make filing complaints easier and more relevant to the membership campground resort industry. (Timeshare 'owners' already have some of these protections.) We are presently coordinating it with several AG offices.

Attorney General (AG) offices encourage consumers to send them information about suspected illegal business practices even though they do not represent individuals seeking the return of their money. By filing a complaint you notify the appropriate agency of the activities of the company so that it can be determined if law enforcement or legal action is warranted.

The more reports they receive the clearer the practice is revealed. Numerous complaints often reveal a pattern of misconduct allowing the AG’s office to take action. Hopefully a person will be assigned to the complaints and get a better idea of what is going on with the industry.

This is a case where each small voice adds up to one big one.

When you address the letter to the AG office include "RE: Membership Campgrounds".

BEFORE YOU FILE YOUR COMPLAINT

Many states require that you try to resolve the issue with the company by letter before filing a complaint with their office. In the letter you should briefly describe the nature of your complaint. If it is about a purchase include the date and place of the transaction along with the amount of money you paid. If it is a case of harassment, state that you no longer want to be called or bothered by this company.

Ask for specific and reasonable action from the company. Allow at least ten working days for the business to respond. Your letter should be polite. Do not be angry, sarcastic or threatening to the business. Type the letter, if possible, and keep a copy of it.

It should be sent by certified mail with a return receipt requested. This will cost more, but will provide evidence of when your letter was received.

If the business does not respond within ten working days, or if it indicates an unwillingness to work with you, file a complaint with the State Office of Consumer Affairs. That is what our form is intended to help you do. Enclose copies of all letters to and from the business that relate to your complaint, including the certified mail return receipt, contracts and other important data. (Copies only – keep the originals.)

Allow three to four weeks for them to review your complaint.

Top of This Page

HOW YOU CAN HELP!

Dan Hopper, NAM

We have worked hard and with some success in helping campers who have been ripped off by the bad guys in the membership camping business. Some are in jail, some are being required to reimburse money they acquired fraudulently, some are out of the business, and we are not finished yet. We need to remember, however, that NOT ALL MEMBERSHIP CAMPING BUSINESSES ARE BAD!

How can we tell the difference between the crooks and the honest people who run membership camping businesses? We have to be fair. We need to set guidelines that campground owners can use to run their business or that campers can use to be sure that they are getting an honest deal for their money. We need to communicate those guidelines to the membership camping industry, to government agencies that regulate them, and to prospective membership campers. Your help is needed now…

We intend to publish and distribute such a set of guidelines… [ What we have so far... ]

Your suggestions will be included in that information.

• What information or guarantees should a camping business be required to provide (a) at the time of sale and (b) after the sale of a membership?
• What do you think (a) state or (b) federal agencies should do to make sure that campers are protected from the crooks? Some very good ideas are incorporated in the article on page one of this newsletter. Your ideas will be added to that list before we finalize it.

SEND US YOUR IDEAS. Click Here to contact us...

Don’t be shy. We want to hear anything you think is important. We will ask trusted advisors (attorneys, government officials, NAM official, campground operators, etc.) to help us organize the responses and put them into a format that can be used to help.

This is one of our efforts to lift the honest campground operators above the sea of problems that the bad guys have created. Right now, it is a very important and timely project that needs your input.

Your quick participation in this project is more important than any donation, etc., that you could send us at this time.

Your name, address, etc., will NOT be provided to anyone. Your ideas are vital to our efforts to help clean up the problems many of us have encountered. (We won’t criticize your spelling, grammar, etc. We really do need your ideas though.)

Click Here to contact us...

NAM
4740 Silver Oak Street
Dayton, Ohio 45424-4650
or

Send us an email [ Click Here ]

Top of This Page