UPDATE: RV Dealership Says Obligation To Customer Was Fulfilled
PALM DESERT- An Indio resident says a Coachella Valley business has come through and paid him the money he was owed for a consignment sale of a luxury RV he organized with the local dealership. The man contacted KMIR6, claiming the business owed him more than $100,000.
Doug Bull said he took his RV to McMahon's RV in Palm Desert for a consignment sale. The company sold the RV for Bull, agreeing to cut him a check for $100,000 within three weeks. But two months later, and with the RV gone, Bull said he hadn't seen his money and no one was telling him why.
"It's absolute fraud. It's my money," said Bull.
Bull says the company wasn't returning his calls. KMIR6 reached out to McMahon's GM. He declined to be interviewed on camera, but over the phone he said Bull would be getting a check this week.
On Wednesday, after our initial report aired, KMIR received a letter from Adam Obeid, in-house legal counsel for Mega RV Corp, the Westminster based parent company of McMahon's RV. In the letter, Obeid says Bull was not waiting for two months to receive payment.
"A buyer for Mr. Bull's coach was located on or about January 31, 2013 and a purchase contract was drafted on that date," said Obeid in a letter to KMIR6 dated March 6, 2013. "The buyer, however, tendered a personal check upon which a ten business day hold was placed. Accordingly, McMahon's RV did not receive verified funds until February 14, 2013."
Obeid wrote that the company's obligation to pay Bull as outlined in the consignment agreement was fulfilled a full day prior to the deadline of March 7, 2013.
According to the Better Business Bureau, the company has an A+ rating, only eight complaints reported for billing and collections issues in the last three years.
Obeid also included in his letter to KMIR6 that "McMahon's RV acknowledges that its communication with Mr. Bull was deficient, particularly with regards to the ten day hold on funds." The company offered an apology.
"McMahon's RV sells thousands of recreational vehicles a year, and apparently, on this occasion, failed to provide superior customer service to Mr. Bull," Obeid wrote.
Jessica Flores, KMIR6 News