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A Vancouver, British Columbia, RV dealership has been suspended from doing business amid allegations it sold dozens of RVs on consignment and failed to pass on the profits.
The Motor Vehicle Sales Authority of B.C. recently issued a “freeze order” on the sales license, bank accounts and assets belonging to Southwest RV and Sport Ltd., according to a report in the Vancouver Sun.
The company, now being run by a receiver, is one of the largest recreational-vehicle dealers on Vancouver Island, with locations in Sidney, Chemainus and Duncan.
“The problem’s a lot bigger than we ever thought,” said Margaret Myatt, one of those accusing Southwest of improper dealings. “We’re out thousands of dollars and lots of other people are, too.”
RV owners say they consigned with the company, but then had difficulty tracking the vehicles or receiving their share of the sale price. Senior compliance officer Bruce Forbes said the sales authority has received “a lot of complaints” in the past two months regarding Southwest’s sales.
“The number is growing,” Forbes said. “Units have been sold and then the dealer has not reimbursed the original seller.”
Southwest RV customers are also accusing the company of wrongdoing. The sale authority is investigating at least one case in which a person bought an RV for about $150,000 only to learn there was an $87,000 bank lien against the motorhome.
However, Southwest RV has a satisfactory rating with the Better Business Bureau of Vancouver Island.
Calls to Southwest RV’s Vancouver Island locations went unanswered.