McMahon's RV Won't pay off my Trade-in

[Old Trucker]

Originally Posted by Underthegun

HELP!!!

I purchased a 2011 Attitude Toy hauler By Eclipse at one of Mcmahon's RV shows at Angels Stadium in Anaheim. I took delivery of it at the Colton store. This was on Nov. 22, 2011.... I traded in my 2005 Forest River fifth wheel toy hauler that had an outstanding balance left on it through my Credit Union.... Today is Dec. 15th, and they have yet to pay off my trade in.

California State law requires dealerships to pay-off these loans within 21 days of the transaction beign completed. We are way past that.

I've been getting the run~around for several weeks now. According to the people at Colton, all of the pay-offs are handled through the Irvine HQ dealership. I contacted a person over there named "Coleen". She is in charge of "pay-offs" in their finance department. Her story was that, the check has been cut, but Brent McMahon has yet to sign it. Yeah right...
After not getting anywhere over the phone, I paid them a visit in person... I was given some story by the receptionist that Coleen was in a "Meeting" So, naturally, I waited for her... I told the receptionist that I had nothing but time and that I would gladly wait for Coleen to see me....

After several hours, Coleen showed her face, and I explained to her that her business is in violation of the law and that by not paying off my trade, it was costing me money every 2 weeks as the loan payment is automatically deducted from my checking account.

Coleen cut me a check to cover the recent loan payment, and assured me that the matter would be taken care of "tomorrow"... Well, that was two days ago... I tried to call Coleen again today and was told that she is out of the office until Monday...

Guess where I'll be going tomorrow.

I have already contacted the DMV occupational licensing office In Irvine, and will be filing a formal complaint asap... I called an attorney that has experience dealing with McMahons and left a message for him to call me for a consultaion.... I plan on notifying the BBB....

I'm worried that McMahon's my be on the verge of going bankrupt and has no intentions of ever paying off my trade.

They are commiting theft, fraud and violating several other sections in California state law.

If any one has had problems with unethical and illegal activity from this company, please comment or send me a message...

I may be interested in a class action case against Brent McMahon and his company.

I'm looking for some advice from anyone who has been through this type of thing before..... Any one out there that can help me?

~Rob

Rob; I can understand your concern. I am a former manager of a finance company and a former auto sales dept sales manager, and a former self employed trucker. My take is that cash flow may be a little tight and this may cause them to be a little slow paying it off. Yes I know their responsibility, but a couple days is not the end of the world. Coleen got you a reimbursement check for one payment, but did not pay off the loan. Tghis tells me they are short on cash flow, but this does not mean law suite time or bankruptsy. I would closley monitor the situation, but would not panic yet. the Old Trucker.

[catonine]

I had a similar experience when I bought my last MH. The dealer was slow in getting the paperwork forwarded to my local Tax Commissioner. The temp tag was about to expire so I contacted the dealer. They said they had just mailed the paperwork for tag and title and that I should have it by the next day as they were sending it by Fedx. I had it the next day and all was well. But it took almost 30 days to get the needed documents. I bought the MH in Florida and I live in and MH is registered in Georgia. Hope you get satifaction soon. But apparently most or all dealers do things this way. That dont make it right, just makes it a fact.

[HHIDan]

I have to ask. Can they re-sell this trailer and provide the new buyer a clear title without paying out the lien (your $17K loan)?? I can see why they would delay if the trailer is not sold and money is tight... IMO, if they can't sell it, then you've got pretty good protection right there. On the other hand if they can sell it without paying out the lien (in which cas it's no longer a lien) then there is a major flaw in the system. And further, if they did go bankrupt your bank still has a lien on that trailer, don't they. A lawyer should be able to answer...

[WeatherTodd]

Originally Posted by DBeauchamp

I have to ask. Can they re-sell this trailer and provide the new buyer a clear title without paying out the lien (your $17K loan)?? I can see why they would delay if the trailer is not sold and money is tight... IMO, if they can't sell it, then you've got pretty good protection right there. On the other hand if they can sell it without paying out the lien (in which cas it's no longer a lien) then there is a major flaw in the system. And further, if they did go bankrupt your bank still has a lien on that trailer, don't they. A lawyer should be able to answer...

It is possible to retitle/reassign the vehicle if the OP signed a power of attorney.
The bank would have to authorize the release of the title since they are a lien holder. They will not likely do that without guaranteed payment.

I sold a clear title vehicle to a person who got a loan through his local credit union. We signed a bill of sale, I signed the title, and I was given a certified check. The bank applied for registration with me still as the titled owner to save $100 title fee. The buyer ended up smashing into a bunch of people and seriously injuring some. Unfortunately the buyer fatally injured himself. 9 months after the sale I start getting a flurry of letters from ambulance chasers telling Im being sued. Learned alot about personal asset searches from that and changed my ownership habits. (and how lazy/cheap banks can be)

[Underthegun]

Update:
Thanks again to everyone for your responses!

Spoke with an attorney yesterday. The first step is to file a formal complaint with the DMV "Investigations" depatment. Apparently the "Occupational Licensing" people don't handle these types of complaints. It's up to the investigations people.

I'm not going to lawyer up just yet.

I spoke with an investigator at the DMV in Irvine. They are very familiar with McMahon's and assured me that I do in fact have a legitamte complaint and to take action sooner rather than later.

SO, Monday, I have an appointment with the DMV investigators.

I also spoke with a member of the Dealer Relations section with Bank Of The West ( they are the lein holders of the new loan)... While they can't force McMahon's to pay off the trade, they can discuss with them why they haven't... If they're smart, McMahon's doesn't want to soil their relationship with one of their biggest lenders... She acknowledged that I have a right to be concerned and that McMahon's actions is putting Bank Of The West's reputation at risk, and this is not how business should be conducted.

My Credit Union at work ( who is the lein holder of the trade-in) Is absolutely no help at all... THey don't care as long as I am making the payments...

I told the manager that while I hope McMahons pays off the trade soon, if they don't there is going to be a time when I will no longer be making payments on a trailer that I no longer own, and therefore end up defaulting on the loan... I won't be happy about ruining my 780 FICO score, but at the same time, good luck reposessing a trailer that McMahon's has stolen... It would be in my Credit union's best interest to help me in this matter as we each have a dog in this fight...

Yesterday, I was told by the little receptionist girl at McMahons that she spoke with "Paul" and "Paul" promised that the check would be sent last night.... yeah right..

She refused to put "Paul" on the phone, took my phone number and "gave him the message"...

Monday, after my DMV meeting, I'm going to pack a sack lunch, drive down to McMahon's again, and hang out ALL DAY until I have a check in my hand... I want to hand deliver the check to my credit union.

At some point these people are going to get the message, and make good on their promises. Or I'll just keep visiting them EVERYDAY....

[Dutch Star Don]

Underthegun.......Hopefully you get this straightened out. I had the same issue with a dealership when I traded in a leased vehicle that had two more lease payments due. They didn't payoff right away and I had to fight with them. They were just lazy and incompetent.

Make SURE you go to DMV's website and fill out a "release of liability" on the old trailer. The dealer is not required to transfer ownership until the trailer is sold. You'll start getting notices that you owe fees on the trailer when registartion is due. Twice in the last two years, I've received parking tickets on vehicles I sold (one over 10 years ago and one over 5 years ago). California DMV is totally inept.

As a Peace Officer, McMahons can't be accused of 487.3 PC, but you could push for 10851 V.C. :-)

[Underthegun]

Originally Posted by Diplomat Don

Underthegun.......Hopefully you get this straightened out. I had the same issue with a dealership when I traded in a leased vehicle that had two more lease payments due. They didn't payoff right away and I had to fight with them. They were just lazy and incompetent.

Make SURE you go to DMV's website and fill out a "release of liability" on the old trailer. The dealer is not required to transfer ownership until the trailer is sold. You'll start getting notices that you owe fees on the trailer when registartion is due. Twice in the last two years, I've received parking tickets on vehicles I sold (one over 10 years ago and one over 5 years ago). California DMV is totally inept.

As a Peace Officer, McMahons can't be accused of 487.3 PC, but you could push for 10851 V.C. :-)

Thanks Don, 10851VC was definetly somthing worth looking into....

[Underthegun]

UPDATE!:

I wrote "was" in my reply to Don because......

Before heading down to the DMV investigations office, I thought I'd complete my morning call over to McMahons.. I got a new voice on the phone, and he advised me that the office is closed through x-mas.... Lovely.. He put me through to a Finance Managers voicemail (Someone named "Phil").... I left a nice, long, unpleasant message for Phil to enjoy when he gets back from where ever it is that he's hiding...

Then I called my credit union to get see if, by chance, MAYBE McMahon's had sent the check.....

and wouldn't you know.....

THEY PAID IT OFF !!!!!!!!! WWWWOOOO HOOOOOOO!!!!!!

I can't tell you how pleased I was to hear the manager at the credit union tell me that great bit of news!!!

Thanks to everyone here that commented on the thread, and gave your advice and thoughts.. I really appreciate it..... The iRV2 community is great!

Maybe now I can enjoy the forums and my new RV!

I will still pursue the complaint with the DMV, because McMahon's did break the law, and put me through a significant amount of stress...

I have already filed a negative review with the BBB...

And I will still discourage anyone I know from purchasing from this business...

Anyway.... thanks again!

ONWARD! ~Rob

[smack2020]

Awesome news

[sdennislee]

Glad to hear you are no longer "underthegun" for the old loan. Great news

[jabfado]

What this tell me is not to do Business with McMahon's RV for any reason..I think you are persuing the cituation correctly and time will resolve it....except if you are correct in the Bankrupsty cituation....If you consulted with an Attorney you should have a better picture of what might happen...I would give it a few more weeks before you spend money on an Attorney if you haven't done so. Good Luck.

[173dave]

I sold my yacht a few years ago and the buyers bank got mad at me when I could not tell them how many miles were on it. Then a few days later I got the title in the mail "paid in Full". I think much of the problem is the nut behind the wheel. lol

[Mr_D]

Originally Posted by 173dave

I sold my yacht a few years ago and the buyers bank got mad at me when I could not tell them how many miles were on it. Then a few days later I got the title in the mail "paid in Full". I think much of the problem is the nut behind the wheel. lol

Did they want nautical miles or statute miles?

[Wayne M]

You don't own the old unit anymore. Can't you stop the bank from automatically deducting it. It's the dealer's responsibility now, and you should have paper work to that effect.