In 2008 my wife and I were approached by a sales person from a local California based company called IHP. This sales person came to our house and presented us with a food service that included our choice of meats and other non perishables that would last a family of 5 for 6 months. The selling statement is that we will not run out of food and presented us with facts that this would indeed save us time and money. As part of this food service we would get a freezer and our choice of either a 20 piece set of waterless pans and pots or cutlery. These items were said to be free and part of the food service.
This all sounded like a great deal, it would save us time of shopping and made financial sense. Sure, that was until the contract he pulled out. We were told to sign a contract but wait, here is the catch. The contract we signed said nothing about a food service that he described. It instead was the sale of the freezer and the pots and pans. The freezer sells for $200 tops and the pots and pans for about the same.in the contract however we were to pay $1,700 for each…plus 25% interest. $400 in merchandise for $5000.00? This part in itself should not be legal as NO ONE, would ever do that unless they were lied to. When we asked about this he told us that was the only way he would get the products delivered and it was just a way to get it to all work.
The end result was that we had to pay on 2 accounts to a totally different company than the food service, enters Jayco Acceptance Corporation. It also turned out that in addition to the monthly fees outlined in the contract, we were also required to pay $100 every time he delivered us new food. This was not part of the deal that he told us. We contacted Jayco, not knowing they were such a mendacious scam company, and the person was very rude and even went so far as to insult us. At that point I hung up the phone and a few months later I lost my job, foreclosed on my house and moved out of California.
I have since filed Bankruptcy but now 3 months after my discharge Jayco is contacting us with threatening letters stating that the debt was not unsecured and they have rights to the merchandise. Jayco is threatening to file legal action against us unless we either pay $1500.00 or return the merchandise. We believe this cannot be collected on since a similar situation happened in 2008 when the Attorney General's office from Nebraska filed a law suit against Jayco Acceptance Corporation. Jayco lost this suit and was forced to pay its customers in losses. This is an obvious scam for the reasons stated in the lawsuit.
Violation of the CPA
It was represented that the freezer or another appliance was free as a part of the program, when the reality was that the consumers were paying more than $4,000 for the freezer over a 4-year period. The evidence presented at trial established that CCF engaged in unfair and deceptive practices in the sale of assets and services and in commerce as contemplated by the CPA.
Violation of UDTPA.
IHP sold goods and services that were not as advertised, misrepresented the characteristics of goods and services, caused misunderstanding as to the source of goods and services, and caused confusion and misunderstanding as to CCF's affiliation with other food service businesses throughout the country, all in violation of the UDTPA.
Jayco, as the holder of IHP contracts, should be liable under the FTC Holder Rule for violations of the CPA and the UDTPA. Jayco is liable on any claims or defenses upon which the consumers succeeded. The district court found that? The consumers were entitled to recover from Jayco on the claims they had against CCF to the extent of any money they paid to Jayco.
Http://caselaw. Findlaw.com/ne-supreme-court/1160764.html
STATE STENBERG v. Consumer choice foods inc. STATE of Nebraska ex rel. Don STENBERG, Attorney General, Appellee and Cross-Appellant, v. CONSUMER'S CHOICE FOODS, INC., et al., Appellees, Jayco Acceptance Corporation, Appellant and Cross-Appellee. Here the consumers were also scammed by a similar company Consumer's choice foods same scam as NY prime Foods or Island Prime Foods pulled with several customers already in the NY state area.
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