In the matter of THE MOTOR DEALER ACT R.S.B.C. 1996 C.316 and THE SALESPERSON LICENSING REGULATION B.C. REG. 241/2004
Complainant: REGISTRAR
Licensee/Unlicensed person:
LLOYD SCHELL
Issues:
A hearing was called pursuant to sections 6 and 7 of the Salesperson Licensing Regulation (the “Regulation”) to review the application of Lloyd Clement Schell, proposed licence # 201339 for licensing as a salesperson.
The VSA staff raised the following concerns:
Mr. Schell is the subject of a 15 year direct sales ban issued December 5, 2013, by Consumer Protection B.C. for breaching provisions of the Business Practices and Consumer Protection Act S.B.C. 2004 c. 2 (BPCPA);
Mr. Schell was the subject of a 5 year direct sales ban issued December 9, 2005, by the Business Practices and Consumer Protection Authority (now Consumer Protection B.C.) for breaching provisions of the BPCPA; and
Mr. Schell conducted direct sales in Alberta from about 2005 until 2010 while not licensed to do so.
Outcome:
The Registrar noted the relationship of direct sales and the conduct of motor vehicle salespeople are extremely similar. Salespeople are left alone to make representations to consumers about motor vehicles, which also occur with direct sales. In some dealerships, salespeople are left alone and finalize the sales and take deposits and full payments, also very similar to direct sales. Salespeople are to use contracts containing legislatively required disclosures, similar to direct sales.
Mr. Schell has been found in breach of provisions of the BPCPA administered by the Registrar in the motor dealer industry. He has been found to have misled consumers and has shown a continuing propensity to do so. Mr. Schell has continuously used legislatively deficient contracts, has ignored the law and the lawful orders of his regulator. For this conduct, and his past history of continuous non-compliance, Mr. Schell was banned from direct sales for 15 years just four months ago, on December 5, 2013.
The Registrar finds Mr. Schell’s past conduct indicates he will not abide by the law in the future, that he would be ungovernable and that he poses a risk to the public interest if licensed.
The Registrar refuses to issue Mr. Schell a salesperson license.
In order to protect the Registrar’s process and the public interest, the Registrar finds it necessary to declare that the Registrar will not accept a salesperson application from Mr. Schell until the Direct Sales Prohibition Order of December 5, 2013, expires in 15 years: Pugliese v. Clark (Registrar of Mortgage Brokers, British Columbia) 2008 BCCA 130 (Court of Appeal).
Whether or not Mr. Schell will be granted a salesperson licence in the future will depend on the facts that exist at that future date. This includes, but is not limited to, the steps Mr. Schell has taken to rehabilitate and show that he can be trusted by the public as a salesperson. The simple passage of time is not evidence of rehabilitation: 7340 v. Registrar, Motor Vehicle Dealers Act 2002, 2012 CanLII 52462 (ON LAT), and 7804 v. Registrar, Motor Vehicle Dealers Act 2002, 2013 CanLII 27307 (ON LAT).
