OMVIC, Ontario’s vehicle sales regulator, has ordered the immediate suspensionof Hudson’s Fine Cars Inc., 3715 Keele St., Unit: 15 & 16, Toronto, and of the dealership's officer and director, Hamid Valizadeh. As a result, Hudson’s Fine Cars Inc.and Hamid Valizadeh cannot legally sell, lease, buy or consign vehicles.
In conjunction with the Suspension Order, a Proposal to Revoke the Registration of Hudson’s Fine Cars Inc. and Hamid Valizadeh, has also been issued.The immediate suspension of Hudson’s Fine Cars Inc. and Valizadeh was triggered after several consumer complaints and an OMVIC inspection. The dealer allegedly:
- Failed to remove liens from vehicles traded in in a timely manner, resulting in additional payments being made by customers and the need to seek reimbursement
- Failed to remove liens from vehicles traded in, leaving customers responsible for loans on vehicles they no longer owned
- Failed to provide records to the Registrar (OMVIC) as required
In most cases, when a customer trades in a vehicle to a dealership and there is money owing on the trade, the financing of the new vehicle includes the required amount to pay off the loan on the trade-in – these monies are traditionally sent to the dealer to pay the loan and remove the lien from the trade in. If the dealer fails to do so, the customer is left responsible for a loan on a vehicle they no longer own and for the loan for their new vehicle. This is allegedly what happened to some customers of Hudson’s Fine Cars Inc.
According to OMVIC CEO and Interim Registrar, John Carmichael, Immediate Suspensions are only issued when the regulator believes a “dealer’s conduct may place the car-buying public at imminent risk.”
Note: The dealer has since appealed the immediate suspension order, and a hearing will be held.
Consumers are warned not to buy or lease motor vehicles from, or sell or consign motor vehicles to, Hudson’s Fine Cars Inc. or Hamid Valizadeh while the dealers’ registrations are suspended/terminated; consumers who trade with an unregistered business or individual may not be protected by the Motor Vehicle Dealers Compensation Fund.
Advice to Customers of Hudson’s Fine Cars Inc.
OMVIC encourages consumers who traded a vehicle in at Hudson’s Fine Cars Inc.,and the dealer was to pay out a loan on the trade, to contact their financial institution and ensure the loan was paid in full.
Customers who recently purchased a vehicle from the dealer should ensure the vehicle does not have an unexpected lien. This information can be found by consulting a Used Vehicle Information Package
(UVIP) available from Service Ontario, or a CARFAX Vehicle History Report
. Customers of who have questions or concerns should contact OMVIC’s Complaints and Inquiries Team at: 1-800-943-6002x3942.
A consumer who still owes money on a vehicle being traded-in should call their lender to obtain the loan payout (amount still owing). Many dealers will do this for their customers, but consumers should verify the payout.
Note: OMVIC’s Code of Ethics, the Consumer Protection Act and the Sale of Goods Act requires dealers to remove liens on trade-ins as soon as possible. OMVIC urges consumers to be mindful of early warning signs that indicate the loan on a trade-in was not paid in full. Should a payment be deducted from a consumer’s bank account for a payment on a vehicle traded in, contact the dealer and the financial institution. If that doesn’t rectify the problem, the consumer should immediately contact OMVIC’s Complaints and Inquiries Team. Should a dealer offer to make the monthly loan payments on a customer’s trade-in, rather than pay off the loan in full, consumers should understand this is a significant risk and contact OMVIC at once. For more information on trading in a vehicle click here