Difference between revisions of "Motor Dealer Act (11:VII)"

An individual who suffers a loss as a result of purchasing a motor vehicle from a registered motor dealer may be entitled to compensation from the Motor Dealer Customer Compensation Fund Board (“the Board”). A consignor of a motor vehicle is also entitled to make an application – on  similar grounds as a purchaser – for compensation for the loss of the consigned vehicle or the value of the vehicle. Individuals who have  purchased a vehicle, primarily for personal or family use, from a registered motor dealer are eligible to apply to the Board for compensation.  Before applying for compensation, the consumer must first make a demand against the motor dealer responsible for the loss. What constitutes an  eligible loss is set out in s 5 of the ''Motor Dealer Customer Compensation Fund Regulation'', BC Reg 102/95 [MDCCFR]. An eligible loss must be a  liquidated amount arising from a trade-in, full payment, deposit or down payment or other liquidated amount in respect of the purchase of a motor vehicle. The cause of the loss must be related to the bankruptcy, insolvency, receivership, dishonest conduct, or failure of the motor dealer to provide clear title.