To be eligible for compensation from the Fund, you must meet all of the following requirements:
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:
You are eligible to apply if you bought a warranty or a service plan on a vehicle but later you were unable to use some or all of the warranty or plan. You loss may be covered if this happened because the dealer went out of business or because of some other failure by the dealer.
If your loss is eligible, you may be compensated for the lost value of the warranty or service plan. For example, if you bought a five year warranty and the warranty provider went out of business after two years, the amount of compensation would be calculated as three years of lost warranty, or 60% of what you paid.
No, you do not have to pay any fees to apply for compensation from the Fund.
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.