The Motor Dealer Customer Compensation Fund provides compensation to consumers who have lost money because a motor dealer has either gone out of business or has failed to meet certain legal obligations. The money in the Fund comes from contributions made by all licensed motor dealers in BC. The Fund is the last resort for dealing with a dispute with a dealer and only some types of losses are covered by the Fund.
If you have general questions about the Motor Dealer Customer Compensation Fund, you can contact VSA Consumer Services for more information:
Vehicle Sales Authority of BC
280 – 8029 199th Street
Langley, BC V2Y 0E2
Tel: 604.575-7255 (Lower Mainland)
Toll free: 1. 877.294.9889
To be eligible for compensation from the Fund, you must meet all of the following requirements:
Compensation is available from the Motor Dealer Customer Compensation Fund for consumers who lost money because a dealer has gone out of business or has failed to meet certain legal obligations. There are limitations to the losses that are covered. If your dispute is with a dealer still in business, the Compensation Fund may not be the best option for you. See Resolve a problem when a dealer is licensed. You may also want to consult a lawyer to see if you have any other legal remedies. There may be time limits and you should take steps to understand your rights as soon as possible. See Consumer Protection facts- Legal Resources.
You are eligible to apply if you paid money or traded a vehicle to a dealer, as part of an agreement to buy or lease a vehicle, and:
You are eligible to apply to recover the cost of an unpaid lien on the vehicle you bought or leased if:
How to prepare:To prepare for a hearing, you need to make sure that your application form and any supporting documents are complete. Prior to the hearing, you will receive a copy of any material that the Board will consider at the hearing. This may include the dealer’s written response to your application and the results of an investigation or research if that has been done to assist the Board in making a decision. You should review these materials, and if necessary, you should send a written response within the time allowed for a response.
What happens at a hearing: At a hearing, the Board reviews your application for compensation, the dealer’s response, the results of an investigation or research that has been done to assist the Board, and any further responses submitted by you or the dealer. The Board then applies the criteria contained in the Motor Dealer Act and the Motor Dealer Customer Compensation Fund Regulation to the facts of the case and determines if the claim is eligible for compensation and if so, the amount of compensation to be awarded. Sometimes, the Board may adjourn the hearing of an application to a later date in order to obtain additional information required to make a decision.
How do I find out about the results of a hearing? After the hearing, the Board will send a letter to you and the dealer, informing you about the decision and the reasons for the decision.
What if I don’t agree with the Board’s decision? Under the law, a decision of the board is final. However, you have two options if you do not agree with the Board’s decision. Your first option is to request that the Board reconsider its decision. Under the law, the Board may, at its discretion, reconsider its own decision. Generally, the Board will only agree to reconsider a decision if you can provide new evidence that was not available to you before the hearing. The new evidence must also indicate that the Board’s decision may be wrong or may have been made unfairly. Your second option is to file an application in the Supreme Court of BC for a judicial review of the Board’s decision. If you would like more information about judicial review see the Justice Education Society’s Guide to Administrative Law in BC or talk to a lawyer.