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The following are the most
common questions related to the
Motor Vehicle Dealers
Compensation Fund. If your
questions are not addressed on
this page, please
contact us.
- What is the Compensation Fund?
- What is covered?
- How do I make a claim?
- Is there a limit on the claim amount?
- Is there a time limit to submit my claim to the Fund?
- Is a snowmobile or pull trailer eligible for compensation?
- If I used the motor vehicle in full or part for business purposes am I still eligible to make a claim?
- Where can I review the detailed legal definitions and claim criteria for my claim?
1. What is the
Compensation Fund?
The Fund reimburses eligible
consumers who have suffered a
proven pecuniary or out of pocket
loss related to a vehicle
purchase or lease transaction.
You can only make a claim to the
Fund if you dealt with a
registered dealer at the time of
the transaction. Buying a vehicle
privately or from an unregistered
dealer means you aren't eligible
for the protection of the Fund.
An independent Board of Trustees
consisting of nine members from
the public and industry review
claims and make decisions about
compensation for eligible
claimants based on the Motor
Vehicle Dealers Act, 2002 and
Regulations (or its predecessor
legislation).
2. What is covered?
Compensation may be available
for eligible proven losses
related to a transaction for a
motor vehicle when the dealer
refuses or is unable to pay the
amount directly to the consumer
under one of the following
criteria up to a maximum of
$45,000, if the trade took place
after January 1, 2010 (if the
trade occurred before this time
the claim limit is $15,000):
-
The dealer has failed to
satisfy a court judgement
that has become final
-
The dealer has failed to
return a deposit to a
consumer on an undelivered
motor vehicle (This
excludes a claim for a
refund of monies paid by the
customer to the dealer in
which the customer has been
provided the motor vehicle,
but demands a refund based
on the cost, value or
quality of the vehicle
provided)
-
The dealer has failed to
remit an extended warranty
contract and/or payment for
same to the warranty company
or has not paid for a repair
which would have been
covered and/or refunded the
warranty premium paid by the
consumer
-
The dealer has become
bankrupt
-
The dealer has been
convicted of an offence
related to the trade in the
motor vehicle
-
The dealer has seriously
misrepresented the vehicle
to the consumer and the
consumer would be eligible
for recission of the
contract**
-
The dealer has had its
licence revoked by the
Registrar and one of the
reasons includes issues
related to your
transaction**
-
The dealer has failed to
remit or honour the
conditions of a service plan
agreement
-
The motor vehicle has been
seized by law enforcement or
lawfully by a creditor (not
yours) and the motor vehicle
will not be returned
** only apply to
transactions which took
place after January 1, 2010
Note:
Detailed criteria will vary
depending on the date of the
transaction with the dealer. The
Fund staff will be pleased to
assist with any questions. You
are encouraged to review the
Motor Vehicle Dealers Act or
Motor Vehicle Dealers Act, 2002
and the relevant regulations for
details (see #8 for details).
3. How do I make a
claim?
Consumers must complete the
forms available on OMVIC's
website (under
Compensation Fund) in order to have their
claim considered. If you don't
have internet access please
contact OMVIC at 416-226-4500 or
1-800-943-6002 and ask that the
claim application package be
mailed to you.
The
Process
Ensure you have
exhausted all remedies available
to you. If the dealer is still in
business send written notice of
your concerns by registered mail
or courier and keep proof of
service and copies of the
letter(s). If the dealer does not
provide assistance please contact
OMVIC for complaint handling
assistance at
www.omvic.on.ca and
click "Online Complaints".
Often we are able to resolve
issues with registered dealers
without the necessity of making a
formal claim to the Fund or the
courts.
Staff
Review
If the
dealership is not in business any
longer or is in business but
refuses to pay the amount
outstanding to you please
complete the
forms, attach all supporting documents and mail your
original application to the
Fund administrator. They will
review your documents, attempt to
contact the dealer (if
applicable), liase with you about
any additional information
required and prepare your claim
for consideration by the Board of
Trustees. Fund meetings are not
public and you are not required
to attend in person.
Board of
Trustee Decisions
The Board of
Trustees meets approximately 6-7
times per year and does their
best to pay out on eligible
claims shortly after review.
However, the turn around time
varies depending on whether or
not further inquiries by Fund
staff is required and if complete
documentation has been submitted
by you.
The Fund will
notify you in writing of the
Board of Trustees decision and
reasons for same.
Appeal
Mechanism
If you disagree
with the Board of Trustees
decision you can appeal it to an
independent body called the
Licence Appeal Tribunal. There is
a fee associated with this
service. Details about your
appeal rights are set out in the
written notification you receive
about the Board of Trustee's
decision.
4. Is there a limit on
the claim amount?
Yes. Eligible transactions for
trades which occurred after
January 1, 2010 are payable up to
a maximum of $45,000. Claims
related to eligible transactions
for trades before this date are
payable up to a maximum of
$15,000. In some cases legal fees
and interest awarded by the
courts are also covered above the
maximum payouts.
5. Is there a time
limit to submit my claim to the
Fund?
Yes. You have two years from
the date the dealer was unable or
refused to pay the claim to
submit the information to the
Fund for consideration.
6. Is a snowmobile or
pull trailer eligible for
compensation?
No. Only vehicles defined
under the Motor Vehicle Dealers
Act, 2002 or Motor Vehicle
Dealers Act (depending on date of
your transaction) are eligible
for compensation. Please see
specific definitions contained in
the Acts.
7. If I used the motor
vehicle in full or part for
business purposes am I still
eligible to make a claim?
No. Only an individual
customer or those consumers
acting for personal or family use
and not for business purposes may
make a claim to the Fund.
8. Where can I review
the detailed legal definitions
and claim criteria for my claim?
The Motor
Vehicle Dealers Act, 2002 and its
regulations are relevant for
all
transactions with
a dealer that occur after
December 31, 2009.
Motor Vehicle Dealers Act, 2002
Motor Vehicle Dealers Act, 2002
Regulations
The Motor
Vehicle Dealers Act and its
regulations are relevant for
all
transactions with
a dealer that occur on or
before December 31, 2009.
Motor Vehicle Dealers Act
Motor Vehicle Dealers Act
Regulations
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