Plaintiff voluntarily dismisses Travel Resorts of America unauthorized payments class action

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Update:

• A class action lawsuit filed against Travel Resorts of America was dismissed without prejudice in June 2016. 
• In a notice of dismissal, the plaintiff behind the claims says Travel Resorts of America neither answered the complaint nor filed a motion for summary judgment. 
• Travel Resorts of America had been accused of deducting unauthorized payments from the bank accounts of consumers who had already canceled their memberships with the vacation service provider. 
• The company was further accused of using high pressure sales tactics to convince the plaintiff to enter into a written agreement for a membership to an RV campground in May 2015, around a year prior to the complaint. 

(May 11, 2016)

A proposed class action lawsuit has been filed against Travel Resorts of America alleging the vacation service provider deducted unauthorized payments from consumers’ bank accounts, despite having cancelled their memberships.

Travel Resorts of America owns and operates a collection of six private resort RV campgrounds in North Carolina, Pennsylvania, Ohio, and New York. It is also affiliated with numerous private RV campgrounds nationwide, providing members with access to its parks for a fee.

Plaintiff Yvonne Lugo brings this action on behalf of herself and others similarly situated, stating that Travel Resorts of America used high pressured sales tactics to convince her to enter into a written agreement for a RV campground membership in May of 2015.

At this time, Lugo provided the company with her debit card number to set up automatic monthly payments in the amount of $101.14 but was not provided a specific contract to permit the monthly withdrawals.

However, two weeks after the initial agreement, Lugo contacted Travel Resorts of America to cancel her membership and stop the automatic debited payments. She claims that the luxury RV campground operator refused to cancel her auto payments even though she revoked authorization.

According to Lugo, Travel Resorts of America continues to deduct sums from her bank account electronically without her consent, which is a violation of the Electronic Funds Transfer Act (EFTA).

EFTA provides that a “preauthorized electronic fund transfer from a consumer’s accounts may be authorized by the consumer only in writing, and a copy of such authorization shall be provided to the consumer when made.”

The Travel Resorts of America lawsuit argues that in multiple instances, the company violated EFTA by debiting bank accounts of cancelled members on a recurring basis without obtaining written authorization for the electronic funds transfers.

“Defendants did not request, nor did it provide, class members with written agreements memorializing the automatic or recurring electronic payments,” the complaint states.

In fact, Travel Resorts of America has been the target of numerous consumer complaints, many of whom have voiced their frustration about the company’s high pressure sales tactics and membership cancellation practices online.

One consumer’s travel review site post claims that the company used deceptive practices in regards to the automatic payments, stating that they were never given a written agreement to authorize such withdrawals and when they tried to cancel the automatic payment, Travel Resorts of America responded:

“Travel Resorts of America does not require members to pay by automatic withdraw and many members choose not to do this… we do not feel that we have done anything that has not followed regular business practices or that has violated the contract that [customers] signed. This membership will not be canceled”.

Lugo is seeking certification for a nationwide Class of consumers requesting injunctive relief for Travel Resorts of America debiting bank accounts on a recurring basis without obtaining a written authorization signed or similarly authenticated for preauthorized electronic funds transfers.

Additionally, under the EFTA, Lugo claims that Class Members are eligible for statutory damages of $1,000 each, as well as actual damages and litigation costs.

Lugo is represented by Cynthia Levin of the Law Offices of Todd Friedman PC.

The Travel Resorts of America Class Action Lawsuit is Lugo v. Travel Resorts of America Inc., Case No. 5:16-cv-02190, in the U.S. District Court for the Eastern District of Pennsylvania.

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