The state’s justice arm investigated Northwest RV last year and the president of the Salem-based dealership, Russell Johnson, signed official documents saying he would follow Oregon law on consignment deals.
The latest development comes as Northwest RV faces financial trouble. The Statesman Journal reported last week the dealer has made a move not unlike filing for bankruptcy protection.
In October of this year, Northwest RV lost its state dealer certificate following complaints about its failure to pay for consigned goods in a timely manner. Oregon law requires these kinds of deals be paid out within 10 days.
The Department of Justice has received a flood of complaints against the business in recent weeks.
On Wednesday, a total of 29 complaints had been filed with the Department of Justice, 20 of which had been filed after the state revoked the company’s dealer certificate last month.
Separately, a husband and wife are suing Northwest RV Sales Inc. to rescind their contract for a motor home they bought last November. The couple claims the dealer failed to tell them about a crash that the motor home they bought had been in, among other allegations.
They are seeking at least $120,000 if the company doesn’t reverse the contract, according to Mark Comstock, a lawyer for Richard and Maureen Beal, the plaintiffs.
Ryan Johnson, son of Northwest RV president Russell Johnson, has said his father is sick and would not have let the business falter were he in better health.