Grey nomads lose life savings

The collapse of Brisbane-based Motorhome Conversion Company in July this year has left more than 100 people “out of pocket”, according to an investigation by the ABC’s 7.30 program.

According to the ABC report, the “Motorhome Conversion Company, founded by John Jeffreys, went into liquidation in July with debts of $3.6 million owed to unsecured creditors”.

One older couple from rural NSW said they felt “ripped off” after paying $100,000 to the Motorhome Conversion Company but never taking delivery of the vehicle. After being refused a refund and then deciding to re-sell the vehicle, the couple spent “months chasing the payment over the phone” after being told it had been sold, before the business went into liquidation.

The ABC report also raises questions about alleged breaches of the Fair Trading Act by the Motorhome Conversion Company, as well as possible breaches of corporate law including trading while insolvent.

Reportedly a new business, Lifestyle Motorhome Conversions has since opened up on the same premises as the old motorhome conversion company in the outer Brisbane suburb of Slacks Creek, with former co-owner John Jeffreys working as an employee of Lifestyle.

Liquidator Nick Combis said he’d “recently agreed to sell the failed company's operational assets to Lifestyle Motorhome Conversions for an undisclosed price above valuation".

The ABC report is the latest to shine the spotlight on dodgy dealings in the Australian RV industry, and follows recent publicity around scam websites or online sellers advertising 'fake' motorhomes.

In late-2018 Queensland's Gidget Campers was ordered to pay more than  $1 million in fines, compensation and court costs following an Office of Fair Trading (OFT) investigation into its 'unethical' practices.

To read the full ABC report click here.