If you suffer a financial loss from a motor vehicle purchase, the Motor Vehicle Dealers Compensation Fund (MVDCF) may provide relief if you meet the eligibility criteria, which includes purchasing from an Ontario Motor Vehicle Industry Council (OMVIC)-registered dealer. As the oldest fund of its kind in Ontario, it has provided much-needed financial relief to many consumers since its inception.
How the MVDCF helped Giselle
One consumer, Giselle, wanted to purchase a newer, more reliable second car. After finding one she liked at a dealership, the dealer arranged a loan for the vehicle and agreed to pay out the lien on her trade-in.
However, the dealer did not immediately pay the lien like they promised. Instead, Giselle had to repeatedly call the dealer. Giselle worked with OMVIC to try and come to an amicable solution with the dealer and managed to get the dealer to pay out the lien after six months.
Often, consumers can solve issues from a motor vehicle purchase by speaking directly to dealers. If buyers and dealers cannot come to a resolution, OMVIC’s consumer support team can review complaints and sometimes attempt to negotiate a settlement between a buyer and a dealer. The compensation fund is only used as a last resort once consumers who meet the eligibility criteria have worked with OMVIC to try and find a resolution.
What happened next?
Giselle’s problems with the dealer were not over. OMVIC investigated the dealer and found the odometer in Giselle’s new car was rolled-back without her knowledge, making her eligible for restitution through the compensation fund. There are many issues which could make a consumer eligible to make a claim through the compensation fund, like if the dealer has failed to satisfy a final court judgment, or if OMVIC has revoked the dealer’s license for reasons related to the consumer’s vehicle transaction.
Giselle filed a claim with the MVDCF and was refunded $8,747. OMVIC also revoked the dealer’s licence and fined them $12,500 for breaching the MVDA. “I was happy when the compensation fund was able to remedy my situation. It felt good to know that someone was listening,” said Giselle. “The compensation fund gave me peace of mind and brought back the sense of freedom I felt when I purchased my first car.”
OMVIC is here to help
Consumers with issues after a car purchase can always contact OMVIC’s consumer support team with questions. The team has the tools to ensure consumers can get the information they need to make an informed decision about what to do next.
For more information about the MVDCF please visit our webpage at http://bit.ly/2RsyVVX. If you have any questions you can also call our consumer support team at 1-800-943-6002.