Consumer Line Issue #54
Don’t Lien on Me
A lien is a legal “encumbrance” registered on a person’s property to secure the debt the property owner owes to another person/business (commonly a bank/lender). In the case of a car loan, a bank (or finance company) will register a lien against the vehicle giving them the right to take possession of it should the borrower default on the loan and to sell the vehicle to recoup the outstanding debt.
So it’s really important you DON’T buy a vehicle with an outstanding lien! Historically, this was only a concern for consumers buying a car privately because it is illegal for a registered dealer to sell a car with an outstanding lien. But recently, OMVIC has encountered a small number of dealers failing to remove liens from vehicles that were traded-in and then selling those vehicles.
North Bay dealer suspended for not removing liens from vehicles
OMVIC has ordered the immediate suspension of D L Auto Brokers, operated by Darrel Legare at 581 Lakeshore Drive, North Bay. As a result, Legare and D L Auto Brokers may not legally sell, lease, buy or consign vehicles. The immediate suspension of D L Auto Brokers was triggered following an OMVIC inspection and a consumer complaint which alleged the dealer was not removing liens from vehicles traded in, amongst other offenses.
Ottawa-area man fined $40,000 for illegally selling rebuilt wrecks, many without airbags
Ahmad Moussa, sole director of Quality Motors, 1417 Cyrville Road in Ottawa, was charged by OMVIC with curbsiding - acting as a dealer without registration.
OMVIC administers and enforces the Motor Vehicle Dealers Act (MVDA) on behalf of the Ministry of Government and Consumer Services. OMVIC maintains a fair and informed vehicle sales marketplace by regulating dealers and salespersons, regularly inspecting Ontario's 8,000 dealerships and 27,000 salespeople, maintaining a complaint line for consumers and conducting investigations and prosecutions of industry misconduct and illegal sales (curbsiding). OMVIC is also responsible for administering the Motor Vehicle Dealers Compensation Fund on behalf of its Board of Trustees.
Consumer Line is OMVIC’s consumer guide to Ontario’s motor vehicle dealer industry. It is published throughout the year, delivered free via e-mail and provides consumers with useful tips, industry news and important, up-to-date information.
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