Apply to the Motor Vehicle Dealers Compensation Fund

I'm having trouble with a used car I bought from a registered dealer. What should I do?
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Apply to the Motor Vehicle Dealers Compensation Fund

If the problem cannot be solved with the help of Ontario Motor Vehicle Industry Council (OMVIC), you may be eligible for financial compensation from the Motor Vehicle Dealers Compensation Fund.

Depending on your situation, the fund may give you some or all of your money back. For example, you might get some money back if:

  • the dealer is bankrupt and owes you money
  • the dealer fails to pay a court judgment, refund a deposit for a car or truck that it didn’t deliver, or honour a warranty claim
  • the dealer is convicted of certain offences or has its licence revoked
  • the dealer made false or misleading statements about the car or truck when selling it to you
  • the car or truck was seized by the police
  • the car or truck was seized because there was a lien on it

The most you can receive from the fund per car or truck is $45,000. You must make the claim within 2 years from the date you first learned of the problem.

For example, if:

  • you bought a used car on December 1, 2013, and
  • learned it had been used previously as a rental car on September 14, 2014

then the last day you could file a claim would be September 14, 2016.

Before you apply to the compensation fund, you must first send a letter to the dealer by registered mail. The letter should be short, clear, and specific. The letter should also specify a time by when you expect to hear back from the dealer (5-7 days is reasonable).

To apply for compensation from the fund you must complete the Compensation Fund Application Package. Your claim forms must be signed and notarized. Your forms can be notarized by a notary public or lawyer.

You must include any supporting documents or evidence about your claim.

OMVIC staff will review your application. If it meets the requirements, they will prepare the claim for the Board of Trustees to consider. Once the Board of Trustees makes a decision, OMVIC staff will contact you. If your claim is rejected you can appeal to the Licence Appeal Tribunal.

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Ontario Motor Vehicle Industry Council
Reviewed: December 31, 2016

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