Consumer Warning - Brampton Dealer No Longer Licensed to Sell Vehicles

Publication of this information is made pursuant to Section 27(2) of the General Regulations of the Motor Vehicle Dealers Act and is intended protect the public.

TORONTO, Aug. 23, 2016 /CNW/ - OMVIC, Ontario's vehicle sales regulator, is warning consumers not to purchase or lease vehicles from, or sell or consign vehicles to, Club Autohaus Inc., 14 Stafford Drive, Brampton or its sole officer and director Ravinder Gawri.

According to OMVIC, the dealership's registration lapsed June 3, 2016 and the regulator has issued a Proposal to Refuse to Renew the dealer's registration, due to concerns about the dealership's financial integrity and inspection results that found the dealer failed to properly disclose numerous vehicles it sold were rebuilt insurance write-offs. Note: the Proposal is appealable to Ontario's Licence Appeal Tribunal (LAT).

Despite the termination of the dealer's licence, OMVIC has learned Club Autohaus Inc. has allegedly continued to sell vehicles. "Our Complaints Team has heard from a number of consumers who claim they recently gave Club Autohaus deposits on vehicles," explained Laura Halbert, OMVIC's Director of Compliance. "However, because the dealership is no longer licensed, it cannot transfer the ownership of vehicles; therefore, the purchasers did not take delivery and Club Autohaus has allegedly refused to return their deposits." It is important to note that consumers who purchase vehicles from an unregistered seller may not have access to the Motor Vehicle Dealers Compensation Fund. The Fund protects consumers who suffer a financial loss (of up to $45,000) as a result of a trade (purchase/lease/sale/consignment) with a registered dealer.

Consumers or other dealers with information or questions about Club Autohaus are asked to contact OMVIC's Complaints and Inquiries Team, said Halbert. "If a consumer has been harmed financially, he or she may be able to file a claim with the Compensation Fund."

OMVIC's Complaints and Inquiries Team can be reached at 1-800-943-6002x5105, or by email at consumers@omvic.on.ca.

About Dealer/Salesperson Registration

Ontario's Motor Vehicle Dealers Act (MVDA) requires that all vehicle dealers and salespeople be registered with OMVIC, that they abide by the MVDA and Code of Ethics and that they conduct business with honesty, integrity and in accordance with the law.

Dealer and salesperson registration can be easily verified on OMVIC's website, or by calling OMVIC directly.

About OMVIC

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 27,000 salespeople, maintaining a complaint line for consumers and conducting investigations and prosecutions (or discipline proceedings) of industry misconduct and illegal sales (curbsiding). OMVIC is also responsible for administering the Motor Vehicle Dealers Compensation Fund on behalf of its Board of Trustees.

SOURCE Ontario Motor Vehicle Industry Council (OMVIC)

Image with caption: "OMVIC - Ontario's vehicle sales regulator (CNW Group/Ontario Motor Vehicle Industry Council (OMVIC))". Image available at: http://photos.newswire.ca/images/download/20160823_C2891_PHOTO_EN_758017.jpg

For further information: Terry O'Keefe, Director of Communications, 416-226-4500x3525, Terry.OKeefe@omvic.on.ca; Sarah Choudhury, Senior Communications Officer, 416-226-4500x3172, Sarah.Choudhury@omvic.on.ca; Hassaan Shahid, Communications Officer, 416-226-4500x3185, Hassaan.Shahid@omvic.on.ca

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Ontario Motor Vehicle Industry Council (OMVIC)

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