April 2011: Mercedes-Benz and smart drop warranty transfer fees in Quebec
On April 4, 2011, Mercedes-Benz Canada’s Warranty Manager, George Moffat, agreed to a request from the APA to drop the transfer fees charged on extended warranties sold to consumers in Quebec. Mercedes-Benz agreed to send a notification to dealers that the $250 (smart) and $350 transfer fees (Mercedes-Benz) will not to be charged in Quebec in future, and also to refund Quebec consumers who paid the fees.
APA argued in its letter to Mercedes that a legal precedent prohibiting warranty transfer fees exists in Quebec. The precedent was established in a class action undertaken by the APA and Quebec’s Consumer Protection Office against Toyota Canada; the decision is binding on other carmakers that wish to charge transfer fees on their base or extra-cost warranties in Quebec. Transfer fees charged by third-party warranty companies (Garantie Nationale, Garantie PPP, for example) are not prohibited in the decision.
What you can do
If you purchased a used Mercedes or smart, make sure the automaker has your current address so you receive future owner notifications. If you paid a fee to transfer a warranty on a smart or Mercedes-Benz product, contact Mercedes-Benz Canada for a refund. Be sure to have your Vehicle Identification Number and warranty contract number at hand. You can copy the APA on any written correspondence with an e-mail to www.apamontreal@apa.ca
