EDMONTON, Nov. 16, 2017 /CNW/ - Letters were sent out on Nov. 15 in regards to the final determination amounts from the Alberta Motor Vehicle Industry Council's (AMVIC) Consumer Compensation Fund in the Treadz Auto Group Inc. case.
Fifty-one claims worth a total loss of $1,138,162 were received between Aug. 28, 2014 and Aug. 28, 2017 related to Treadz. As per the Consumer Compensation Fund bylaws, the maximum allowable claim amount is capped at $25,000 per transaction with a maximum payout per business of $300,000. In the Treadz case, the fund is topped up by the $50,000 security bond for a total possible claimable amount of $350,000. As a result of the caps on payouts, individual claims will be pro-rated according to how much of the claim was actually eligible to be paid out.
Some claims were deemed ineligible due to lack of evidence of loss or where there was no direct loss to the consumer. Treadz consumers had three years from the last possible transaction date to file a claim, meaning claims could not be determined until at least Aug. 28, 2017. Each file has been thoroughly reviewed and many claims fluctuated as new information was provided by consumers.
"This is the first substantive claim for a single business through the Consumer Compensation Fund," Doug Lagore, AMVIC interim CEO said. "Service Alberta recently appointed four new public members to the AMVIC board and one of their priorities will be reviewing the fund to make sure it works in the best interest of consumers."
In addition to Consumer Compensation Fund payments, vehicles worth $311,912 were returned to consumers.
The Consumer Compensation Fund was established in 2012 to pay claims of consumers who have suffered a loss arising out of a motor vehicle transaction with a business licensed by AMVIC at the time of the transaction and is no longer in operation. Depending on the loss and how many valid claims there are, consumers can receive up to $25,000, with a maximum amount per business of $300,000.
The Calgary Police Service, with the assistance of AMVIC, investigated Treadz Auto Group Inc., a former vehicle consignment business in Calgary. Sean O'Brien, owner of Treadz, was subsequently charged with 164 counts of fraud, theft, trafficking property obtained by crime and forgery and is awaiting trial.
Treadz was licensed by AMVIC for approximately 10 years until Aug. 28, 2014 when AMVIC cancelled Treadz' business licence and three connected salesperson registrations for failing to pay back consumers for their consigned vehicles.
About AMVIC: The Alberta Motor Vehicle Industry Council (AMVIC) is a regulatory organization delegated by the Minister of Service Alberta to enforce and administer the following legislation in relation to automotive business: the Fair Trading Act; the Automotive Business Regulation; the Cost of Credit Disclosure Regulation, and the Internet Sales Contract Regulation. AMVIC's mandate is to provide consumer protection in Alberta's motor vehicle industry. AMVIC publishes valuable information and tips for consumers, businesses and salespeople at amvic.org.
SOURCE Alberta Motor Vehicle Industry Council (AMVIC)
For further information: Media inquiries may be directed to: Cathy Housdorff, Manager of Communications and Education, Alberta Motor Vehicle Industry Council, 780-468-0476, CHousdorff@amvic.org
The Alberta Motor Vehicle Industry Council, AMVIC, was incorporated under the Alberta Societies Act as a not-for-profit organization for the purpose of administering motor vehicle industry regulations as outlined in the Fair Trading Act on February 12, 1999.