North Bay dealer suspended for not removing liens from vehicles
Wednesday, July 19, 2017
OMVIC, Ontario’s vehicle sales regulator, has ordered the immediate suspension of 1828780 Ontario Inc. o/a 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.
According to OMVIC, Immediate Suspensions are only issued when the regulator believes a dealer’s conduct may place the car-buying public at risk. Laura Halbert, OMVIC’s Director of Compliance and Deputy Registrar, stated the immediate suspension of D L Auto Brokers was triggered following an OMVIC inspection and a consumer complaint that alleged the dealer:
- did not remove liens from two vehicles traded in, leaving consumers potentially responsible for the debts
- did not deposit proceeds of vehicle sales into the dealership bank account as required
- conducted unauthorized consignment sales
- failed to maintain and/or produce records for inspection
- employed unregistered salespersons (Darrel Legare and Andrea St. Amant)
- failed to inform OMVIC as required that the corporation had filed for bankruptcy; additionally, Legare failed to inform OMVIC he had personally filed a commercial proposal pursuant to the Bankruptcy and Insolvency Act
- was not operating from its registered location (the dealer’s licensed address is 197 Lakeshore Drive, not 581 Lakeshore Drive where it was operating)
- sold one vehicle with a registered lien to a consumer, making the purchaser potentially responsible for removing the lien or vulnerable to having the vehicle repossessed
“These are serious allegations,” stated Halbert. “So it was imperative OMVIC issue the Immediate Suspension Order to protect North Bay area car buyers.” In conjunction with the suspension order, OMVIC also issued proposals to revoke the dealer’s registration and to refuse new applications for registration by Legare personally and for a new dealership.
Note: Within 15 days of the issuance of an Immediate Suspension Order a hearing will be held before the Licence Appeal Tribunal. The Tribunal will determine if the order should be extended until a final determination is made regarding the associated Proposal(s) to Revoke/Refuse Registration.
Consumers are warned not to buy or lease vehicles from, or sell or consign vehicles to, D L Auto Brokers or Darrel Legare while the dealer’s registration is suspended; consumers who trade with an unregistered business or individual are not protected by the Motor Vehicle Dealers Compensation Fund.
OMVIC encourages consumers who may have purchased from D L Auto Brokers previously located at, 197 Lakeshore Drive or 518 Lakeshore Drive, North Bay to ensure their vehicles do not have unexpected liens and that liens on vehicles traded in have been removed. This information can be found by consulting a Used Vehicle Information Package (UVIP), available from ServiceOntario or on a CarProof Vehicle History Report.
Consumers with questions or concerns should contact OMVIC’s Complaints and Inquiries Team at 1-800-942-6002x3942.
About OMVIC Registration
Ontario’s Motor Vehicle Dealers Act (MVDA) requires all dealers and salespeople be registered with OMVIC. Unregistered selling (curbsiding) is a serious offence: individuals convicted of curbsiding can be fined $50,000 and jailed for up to two years less a day.
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 27,900 salespeople, maintaining a complaint line for consumers and conducting investigations and prosecutions (or discipline proceedings) of industry misconduct and illegal sales (curbsiding). OMVIC also administers the Motor Vehicle Dealers Compensation Fund on behalf of its Board of Trustees.
About the Motor Vehicle Dealers Compensation Fund
The Motor Vehicle Dealers Compensation Fund is funded by Ontario's registered motor vehicle dealers and provides compensation to consumers who have a valid claim against an Ontario-registered dealer. Qualifying consumers may be eligible to receive up to $45,000 for each valid claim to the Compensation Fund. Since its inception on July 1, 1986, the Compensation Fund has reimbursed consumers more than $5 million.
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