Compensation fund keeps dealers accountable
During I recently wrote about OMVIC, the Ontario Motor Vehicle Industry Council, and how it has impacted dealers and consumers since it began regulating vehicle sales in Ontario in 1997. 5PEBZ * MM EJTDVTT POF PG UIF CFOFlUT UIBU 0.7*$ QSPWJEFT
for consumers who have conducted business with a registered motor vehicle dealer and, in those rare instances, encounter an issue with their purchase, lease or consignment.
This protection is the Motor Vehicle Dealers Compensation Fund (MVDCF), which is administered by OMVIC on behalf of a Board of Trustees. Consumers who are eligible for compensation may qualify for up to $45,000 per vehicle transaction. Disclosure: I am the current chairperson of the Motor Vehicle Dealers Compensation Fund.
The compensation fund was created in 1986 and, to date, it has paid out more than $5 million in compensation to consumers. In 2016 alone, the compensation fund received 43 claims, of which 37 were approved resulting in payment of $219,920 to consumers.
All OMVIC-registered dealers contribute to the compensation fund to protect consumers.
Most of the 1.2 million vehicle transactions at dealerships each year go smoothly. But, if a consumer has an issue with a WFIJDMF USBOTBDUJPO UIFZ TIPVME lSTU DPOUBDU UIF EFBMFSTIJQ UP USZ UP lOE B SFBTPOBCMF TPMVUJPO
Failing that, consumers can contact OMVIC’s free complaint handling service, which is only available to consumers who have purchased from an OMVIC-registered dealer.
OMVIC has no jurisdiction over private sales, manufacturers or independent repair facilities. *G 0.7*$ T DPNQMBJOUT BOE JORVJSJFT UFBN JT VOBCMF UP lOE BO BNJDBCMF TPMVUJPO B DPOTVNFS NBZ DPOTJEFS lMJOH B DMBJN for compensation. Claims must meet one of the criteria set out in the Motor Vehicle Dealers Act that includes:
The dealer has failed to satisfy a court judgment that has CFDPNF lOBM
The dealer has failed to return a deposit to a consumer on an undelivered motor vehicle. The dealer has become bankrupt, a receiver has been appointed or a winding-up order has been made. The dealer has been convicted of an offence related to the trade in the motor vehicle. The dealer has failed to remit payment on an extended
warranty contract, or has not paid for a repair which would have been covered by the dealer’s warranty contract, or has not paid for a repair which would have been covered by the dealer’s warranty and/or has not refunded the warranty premium paid by the consumer.
The dealer has failed to remit or honour the conditions of a service plan agreement.
The dealer has seriously misrepresented the vehicle to the consumer and the consumer would be eligible for cancellation of the contract under Section 50 of the Motor Vehicle Dealers Act (applies only to transactions occurring after Jan. 1, 2010).
The dealer has had its licence revoked by the Registrar and one of the reasons includes issues related to the consumer’s vehicle transaction (applies only to transactions occurring after Jan. 1, 2010).
The motor vehicle has been seized by law enforcement or lawfully by a creditor (not the consumers) and the motor vehicle will not be returned (applies only to transactions
occurring after Jan. 1, 2010). The criteria under which consumers are not permitted to make a claim include: If the motor vehicle was purchased privately (i.e., not from an OMVIC-registered dealer); If the motor vehicle was purchased for business purposes by a company; If the consumer is related, by blood or adoption, or is the spouse of an OMVIC-registered dealer; If the consumer was complicit in illegal activity in the motor vehicle transaction; If a consumer misrepresents the nature of the claim or provides false or misleading evidence in support of the claim. More information about the MVDCF, visit omvic.on.ca/ portal/Consumers/CompensationFund.
This column represents the views and values of the TADA. Write to president@tada.ca or go to tada.ca. Larry Lantz is president of the Trillium Automobile Dealers Association and is a new-car dealer in Hanover, ON.