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The compensation fund is a consumer protection program. It reimburses eligible consumers who have suffered a proven financial or out-of-pocket loss related to a vehicle purchase, lease, or consignment transaction. Consumers can make a claim only if they dealt with an OMVIC-registered dealer at the time of the transaction. Consumers who buy a vehicle privately do not have access to the Compensation Fund.
The fund helps maintain a safe marketplace for consumers by offering added financial security when buying a car from a registered dealer. New dealers pay a one-time $300+HST fee into the fund to keep it solvent. Consumers must give a dealer written notice of their complaint as part of the compensation fund application. If no resolution can be reached with the dealer directly, consumers should contact OMVIC’s consumer support team.
An independent board of trustees consisting of members of the public and industry representatives, review eligible claims and make decisions about compensation based on the MVDA and associated regulations. The fund can compensate eligible consumers up to $45,000 if they suffer a financial loss from a motor vehicle purchase from an OMVIC-registered dealer.
To file a claim, a consumer must meet one of the Compensation Fund eligibility criteria and must have suffered a loss as a result of a transaction involving the purchase or lease of a motor vehicle from an OMVIC-registered dealer. Additionally, the claim must be submitted within two years and the transaction must have occurred in Ontario. A full list of eligibility criteria can be found on OMVIC.ca, under consumers and Compensation Fund.
Before making a claim, always contact OMVIC’s consumer support team at consumers@omvic.on.ca or 1-800-943-6002 for expert advice.
It is important for a consumer to contact the registered dealer in an attempt to work out a reasonable solution before opting to make a claim. If the issue remains unresolved, the consumer may be eligible to make a claim to the Compensation Fund.
Remember to read and understand any contract prior to signing it to avoid complications after a vehicle purchase. In Ontario there is no cooling-off period for motor vehicle agreements, so be sure of your decision before you sign. You will not be eligible for the Compensation Fund if you signed an agreement to purchase or lease a vehicle and then changed your mind. Once you’ve signed a contract, it is legally binding.
Buying a new or used vehicle? Visit omvic.ca to access free car-buying resources to get you started, and sign up for the quarterly newsletter, Consumer Line.
You can also contact OMVIC’s consumer support team at consumers@omvic.on.ca or 1-800-943-6002 for expert advice and answers to all your car-buying questions, or if you have a complaint about a dealer or salesperson in Ontario.
Follow OMVIC on social media to stay up to date on the latest news.
IG: @omvic_official
Twitter: @omvic_official
Facebook: Ontario Motor Vehicle Industry Council (OMVIC)
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