Toronto ON, September 29, 2014 – Waldemar Krzynowek, owner and sole proprietor of Val Car Sales and Service recently pled guilty in a London Court to supplying vehicles to a curbsider, contrary to section 4 (4) of the Motor Vehicle Dealers Act (MVDA). OMVIC, Ontario’s vehicle sales regulator charged Krzynowek after he supplied a 2006 Acura with previous accident damage exceeding $35,000 to an alleged curbsider. Justice of the Peace Peter Aharan fined Val Car Sales and Service and Krzynowek $7,500; the dealer was also fined $1,500 for failing to ensure a purchaser received a copy of the contract.

Curbsiders are illegal unlicensed dealers. Commonly they pose as private sellers and often sell vehicles that are accident damaged, rebuilt write-offs or odometer tampered. “OMVIC spends significant resources investigating, charging and prosecuting curbsiders” stated OMVIC Director of Communications, Terry O’Keefe. “Dealers who assist curbsiders should expect to face charges or disciplinary action”. Discipline panels can order fines up to $25,000. Courts can order fines up to $50,000 and/or two years less a day in jail for individuals, and fines up to $250,000 for corporations.

OMVIC’s efforts in reducing curbsiding in Ontario has resulted in courts imposing significant fines on curbsiders; even jail time as was the case for Andre Campbell (see OMVIC’s recent news release).


Curbsiders

To avoid detection curbsiders usually pose as private sellers, though some operate out of automotive related businesses such as gas stations, repair shops or rental companies. Just as curbsiders commonly misrepresent themselves, they often misrepresent the vehicles they sell.

Because curbsiders are not registered with OMVIC, consumers who purchase from them are deemed to have conducted a private transaction and are therefore not protected by Ontario’s consumer protection laws and cannot access the Motor Vehicle Dealers Compensation Fund.

In spite of OMVIC’s significant enforcement efforts, curbsiding continues to be a problem in Ontario. While curbsiders historically targeted buyers of inexpensive economy vehicles, consumers are warned that there has been a recent shift towards the sale of newer mid-to-high priced vehicles.


How to Spot a Curbsider

Curbsiders often use one or more of the following tactics to dupe car buyers:

  • No evident address – only want to meet in public
  • Doesn’t provide vehicle history report (CarProof or CARFAX)
  • Refuses inspection by purchaser’s mechanic
  • Vehicle not registered to seller or only registered to seller for short period
  • Vehicle priced below market value
  • Vehicle often not plated and/or uninsured; therefore test-drive is not possible
  • Refuses to provide receipt or proof of purchase

Unsure if a business selling vehicles is actually registered? Consumers can conduct a search on OMVIC’s website, or should ask to see the seller’s OMVIC licence; if they are unable to produce one, walk away!

To learn more about curbsiders and how to spot them, and for a list of curbsider convictions, visit www.omvic.on.ca. To report a suspected curbsider, call 1-888-NO-CURBS (662-8727) or email .

 

About OMVIC

OMVIC (Ontario Motor Vehicle Industry Council) 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 25,000 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.

 

For More Information Contact:

Terry O’Keefe
Director of Communications
416-226-4500x3525

www.omvic.on.ca

 

Sarah Choudhury
Communications Officer
416-226-4500x3172

www.omvic.on.ca