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By Danny Wagener, Iowa CCI, Des Moines, Iowa
Des Moines Citizens for Community Improvement celebrated a major victory
against the Wolford Group this year leading up to a lawsuit filed
by the Attorney General that resulted in the company filing for bankruptcy.
The campaign was effective in part because the organization combined
direct action with the use of friendly and hostile targets. It was
also successful because it combined good media strategy with the testimonies
of more then 50 Wolford Group customers to get its message out.
Some of the allies that we used during the fight included the Attorney
General’s Office, the Better Business Bureau (BBB), David Winterfeld
(owner of the mortgage broker used by Wolford), and the Polk County
Attorney.
We began the campaign by targeting the Wolford Group in the early
part of the year by inviting representatives from the company to a
public meeting. When they didn’t show up and 70 members of the
community did, an action was a fairly obvious next step. Approximately
30 of our members paid a visit to owner Rod Wolford II’s house
where they educated Wolford’s neighbors on his misleading practices.
Another step was to have the company's membership in the Better Business
Bureau revoked. Our leaders did this by distributing fliers at the
BBB’s Scam Jam at the Polk County Convention Center. A month
later, the BBB formally revoked Wolford’s membership for noncompliance
with membership standards.
Another ally in the fight was the owner of Metropolitan Mortgage,
David Winterfeld, the mortgage broker to whom Wolford was sending
its customers to obtain financing. We set up a meeting for Winterfield
to tell the Attorney General’s Office and the Iowa Finance Bureau
about Wolford’s numerous unethical business practices.
One of the strongest allies in the fight against the Wolford Group
turned out to be the Attorney General’s office. In August, the
office filed a consumer fraud lawsuit against the Wolford Group, Inc.,
the Wolford Corporation, Rod Wolford Sr., and Rod Wolford II. Eventually
the company was forced to file for bankruptcy.
We are currently working closely with Fannie Mae, local lenders, and
the Attorney General’s Office to see that its members get their
properties returned, or are able to stay in the house they “bought”
from Wolford.
Another reason this campaign was successful was our effective use
of the media. We built a good relationship with a reporter who wrote
more than a dozen quality articles on the issue for the Des Moines
Register. The coverage started in February at a public meeting and
lasted throughout the campaign.
We could also never overestimate the more than 50 one-on- one interviews
with Wolford Group customers. They often led to victims becoming
CCI members and it allowed us to record their story. These stories
were used to draft approximately 40 grievance/demand letters that
were sent to Wolford, the Attorney General, the County Attorney, and
the media. The copies sent to the Attorney General’s Office
served as formal complaints and played a key role in their ability
to file a consumer fraud lawsuit against Wolford.
Considering that we never got our primary target, representatives
of the Wolford Group to the table to negotiate, I think it was a very
innovative and successful campaign. Wolford closed the door
in our face early on, but we kept on the Attorney General’s
Office and the Better Business Bureau to take action against Wolford
and eventually both entities did. |
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