Court approves $171K settlement for consumer claims against Maui business

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The U.S. Bankruptcy Court for the District of Hawaii recently approved a settlement between the Department of Commerce and Consumer Affairs‘ (DCCA) Office of Consumer Protection (OCP) and the bankruptcy trustee in the personal bankruptcy case filed by Mary Virginia Parsons (Parsons), the operator of a Maui business called Aloha Package Homes, LLC (APH).

The Court approved restitution and prejudgment interest to seven Maui residents in the sum of $171,261.42; a total of $24,000 in civil fines and penalties in favor of the State.

Mary Virginia Parsons, the operator of a Maui business called Aloha Package Homes (APH) claimed to have sold the consumers prepackaged homes through APH and then failed to complete their contracts.

The affected consumers ran into problems after requesting refunds from APH and Parsons.

The Office of Consumer Protection conducted an investigation and determined that APH and Parsons had engaged in unfair and deceptive acts and practices in violation of several state consumer protection statutes.

The State says APH and Parsons:

  • Failed to promptly acknowledge requests from consumers to cancel their contracts.
  • Failed to promptly honor cancellation requests
  • Required a written reason for a cancellation when none was necessary
  • Claimed cancellation could only be by agreement, and then refused to agree to cancellation
  • Imposed unwritten preconditions before any cancellation became effective
  • Unreasonably delayed the cancellation process
  • Treated the cancellation of a contract as a breach of that contract by the consumer
  • Demanded that consumers pay liquidated damages
  • Made misleading and deceptive representations about refunds

DCCA’s website.

To see complaint history of a business visit the Hawaii Better Business Bureau website.

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