District Attorney Nola Foulston announced that her office has entered into a Consent Judgment in District
Court with Wholesales Mobile Homes, Inc. The Journal Entry of Consent Judgment, which was agreed to after
negotiations with officials from Wholesales Mobile Homes, Inc., was approved by Judge Timothy Lahey and
that judgment was filed with the Clerk of the District Court. The judgment states that between October 1, 1997
and October 1, 1999, Wholesales Mobile Homes, Inc. violated the Kansas Consumer Protection Act in the
manner in which it handled some of its sales of manufactured homes to consumers. Specifically the judgment
held that in connection with some sales, Wholesales Mobile Homes, Inc.:
a...prepared sales documents, obtained consumer signatures on sales and financing
documents, and presented said documents to third party finance companies. Some of the
documents and statements presented to the financing companies did not accurately
represent the amounts of the down payments made by some of the consumers;
b...caused or permitted some consumers to provide incorrect information to third party
finance companies concerning the readiness of their mobile homes and other facts relating
to whether or not the consumers/purchasers had actually moved into the mobile homes by a
certain time period;
c...on a few occasions, provided down payments to consumers in such a manner as to
increase the purchase price of their mobile home when said consumers may not have fully
understood that the money provided would be added to the principal of their loan;
d...offered buyer incentives to some consumers during this period to encourage them to
purchase a mobile home and the defendant failed to honor and/or provide some of those
incentives to the purchasing consumers in a timely manner.
Pursuant to the Consent Judgment, Wholesales Mobile Homes, Inc. has agreed to pay civil penalties,
investigative fees and court costs totaling $7,566.50. In addition, the judgment sets forth a process for
affected customers of Wholesales to make a claim for restitution if the customer purchased a home from
Wholesales between October 1, 1997 and October 1, 1999 and if the customer cannot otherwise
resolve the
dispute directly with Wholesales Mobile Homes, Inc. Foulston noted that Wholesales Mobile Homes, Inc. fully
cooperated with the District Attorney in this matter and they have assured the District Attorney that every effort
will be made to resolve any outstanding customer concerns.
