Com­pen­sa­tion fund keeps deal­ers ac­count­able

The Hamilton Spectator - - WHEELS -

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.

Any con­sumer who has bought from an On­tario Mo­tor Ve­hi­cle In­dus­try Coun­cil-reg­is­tered dealer may con­tact its free com­plaint han­dling ser­vice.

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