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Compliance > Registrar’s Decisions > Registrar’s Decision 15-02-002

Registrar’s Decision 15-02-002

File Number: 15-02-002

In the matter of THE MOTOR DEALER ACT R.S.B.C. 1996 C.316
and THE BUSINESS PRACTICES AND CONSUMER PROTECTION ACT , S.B.C. 2004 c. 2

Complainant: Vehicle Sales Authority and Sonia Preza

Licensee/Unlicensed person:

0831522 B.C. Ltd. dba Street Trendz Auto Sales & Customization (Dealer #31174), Maxwell Maclean (Salesperson #119575) and Christopher Anthony Yacoback (Salesperson #108710)

Issues:

In April of 2014, Consumer S.P. filed a complaint with the VSA 11 days after purchasing a motor vehicle from Street Trendz.
The complainant had mechanical issues with the motor vehicle and it also did not pass Air Care.
The complainant also indicated that Street Trendz advised the consumer to register the vehicle as located in Whistler to avoid Air Care and the dealer provided the consumer with a Whistler address. The consumer initially did register the vehicle in Whistler.
Street Trendz eventually bought back the motor vehicle from S.P.
Upon investigating the complaint, the VSA compliance officer found other transactions using the same Whistler address and other irregularities in other consumer transactions.
After being served with a Notice of Hearing with the allegations, Street Trendz vacated its premise and disappeared as did Maxwell MacLean. They failed to respond to the Notice of Hearing and cooperate in the process.
A summary of the allegations against Street Trendz, Maxwell MacLean and Christopher Yacoback is as follows:

Selling motor vehicles to four consumers (consumers S.P., J.R., C.S., and R.F.) that had not passed Air Care emissions tests and counseled the consumers to register the motor vehicles at the same address in Whistler, B.C., (outside the Air Care zone) to avoid having to have their vehicles pass Air Care.
Selling a motor vehicle to a consumer J.R. on a purchase agreement and then subsequently registered the motor vehicle with Street Trendz as lessor and the consumer as lessee, and failed to:
(i) provide a lease disclosure statement as required by Part 5, Division 3 and Division 9 of the BPCPA;
(ii) advise the consumer of the one clear day cooling off period for motor vehicle leases as required by section 31 of the Motor Dealer Act Regulation, B.C. Reg. 447/78; and
(iii) advise the consumer the Dealer was not authorized by the Vehicle Sales Authority (the “Authority”) to lease vehicles.
Providing to four consumers (J.R., C.S., D.Z., and R.F.) a vehicle warranty and failed to remit proceeds to the warranty provider or otherwise register the warranty with the warranty provider.
Selling a motor vehicle to a consumer P.B. and failing to advise the consumer that the odometer had been replaced as required by the Motor Dealer Act Regulation sections 21(2)(b), 23(e) and 25.
Selling motor vehicles to four consumers (S.P., J.R., C.S., and R.F.) indicating they were suitable for transportation when they were not.

FINDINGS:

Street Trendz and Maxwell MacLean, with assistance from an insurance agent, counseled consumer S.P. to register their vehicle as located in Whistler to avoid Air Care testing, and provided the consumer with the Whistler address to do so.
Street Trendz declared on the purchase agreement that the motor vehicle purchased by S.P. met the requirements of the Motor Vehicle Act, when it did not, which is a misrepresentation contrary to the Business Practices and Consumer Protection Act.
Street Trendz breached the Business Practices and Consumer Protection Act by failing to provide a proper Cost of Consumer Credit Disclosure Statement to consumer J.R.
Street Trendz failed to remit warranty premiums to the four noted consumers and the evidence showed it failed to remit premiums in 14 consumer transactions.
Street Trendz declared the kilometers on the purchase agreement involving the consumer transaction with P.B. as accurate when it was not. Evidence showed Street Trendz was aware of the difference in kilometers. This is a misrepresentation contrary to the Business Practices and Consumer Protection Act.
The evidence was insufficient to implicate Christopher Yacoback in these allegations. No action is taken against him.
Maxwell MacLean is the directing mind of Street Trendz and his conduct is implicated in these allegations. There was direct evidence that Maxwell MacLean furnished the Whistler address.

Outcome:

The Registrar issued a compliance order on various terms including repaying the VSA its investigation and hearing costs of $2,218.25.
For the misrepresentations associate with Whistler address/Air Care scheme, the Registrar imposed a $15,000 administrative penalty on Street Trendz.
For failing to provide a proper Cost of Consumer Credit Disclosure Statement, the Registrar imposed a $2,000 administrative penalty on Street Trendz.
The motor dealer registration of Street Trendz was cancelled.
The salesperson licence of Maxwell MacLean was cancelled.
Maxwell MacLean may not re-apply for licensing as a salesperson or registration for a motor dealer for 7 years. Whether an application will be approved depends on the facts at the time the application is received.
Maxwell MacLean may not operate a motor dealership in B.C. until he has been a licensed salesperson in good standing for 3 years.

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Registrar's Decision

Registrar’s Decision 15-02-002

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