Car Dealer's Revocation Will Result in Claims to the Motor Vehicle Dealers Compensation Fund

Toronto, July 25, 2002 - The actions of 1371044 Ontario Inc., o/a Queensway Kia has resulted in several claims to the Motor Vehicle Dealers Compensation Fund, other consumer complaints about conduct and the revocation of their dealership licence by the Ontario Motor Vehicle Industry Council (OMVIC).

OMVIC is the regulatory body which oversees car dealers and salespersons in Ontario. OMVIC revoked the dealer licence of Queensway Kia on July 18th, 2002 as a result of concerns over consumer complaints and financial stability issues. The dealership operated from 1049 The Queensway in Etobicoke. It appears the dealer principal of record, Mr. Erwin Gary Gray, whose registration terminated in May 2002, had turned over effective day to day control of the dealership to the General Manager, Mr. Raymond Lewis. Mr. Lewis has also had his salesperson licence revoked as a result of his conduct at the dealership and has had several fraud related charges laid against him by the Toronto Police Service. Mr. Bogdan Trifunovic who worked at Queensway Kia is also the subject of a proposal to revoke registration. Mr. Trifunovic has appealed the Registrar’s decision and the matter will be heard before an independent Tribunal.

Unfortunately, it appears the dealership’s actions and those of some of its staff has impacted negatively on several consumers. OMVIC has received complaints from consumers who allege deposits were left on vehicles but no vehicles were delivered. In some cases Kia Canada has stepped in to assist consumers and through their dealer network have been able to provide the vehicles contracted for without further costs to the consumers. Kia Canada also terminated their dealership agreement with Queensway Kia in early July 2002.

The benefit of doing business with a registered car dealer in Ontario is that consumers have the additional protection of the Motor Vehicle Dealers Compensation Fund. For some consumers who left deposits and have come away empty handed applications are already in process to have their money returned to them via this industry funded consumer protection mechanism. Consumers can make claims to the Fund up to $15,000 for losses they incurred.

Gerry Barg, of Barg Auto Group Inc. of Kitchener and Chair of the Motor Vehicle Dealers Compensation Fund points out if these consumers had dealt with a private individual they would have no recourse except through the courts and then trying to collect on those judgments. Consumers should check on line to see if a car dealer is registered with OMVIC by logging on to their website at www.omvic.on.ca.

In some cases for items other than deposits and warranty non-submissions, consumers will have to pursue action through the courts first and then make application to the Compensation Fund. Several consumers who have contacted the Compensation Fund to lodge complaints against Queensway Kia have alleged the vehicles they traded in for other cars have not had liens paid out on them, so banks are asking in some cases for two monthly car payments.

For more information on the Motor Vehicle Dealers Compensation Fund consumers can log on to the OMVIC website at www.omvic.on.ca and follow the links to the website. Forms to submit claims are available on line. Consumers can also contact OMVIC at 1-800-943-6002 or 416-226-4500.