An Ottawa used car dealership’s licence has been suspended after allegations the business failed to pay out liens on traded-in vehicles, neglected to submit payments to warranty providers and breached other conditions ordered by a provincial tribunal.
The Ontario Motor Vehicle Industry Council, which regulates vehicle sales in the province, said Monday that Marcel Motors Ltd. – which operates as Eastside Better Used Cars – engaged in conduct that “may place the car-buying public at risk.” It said the dealership and its sole officer and director, Nitin Chopra, “may not legally sell, lease, buy or consign vehicles.”
John Carmichael, the council’s CEO, said in a statement the suspension “was triggered following recent serious consumer complaints and alleged breaches of conditions of registration” ordered earlier this year by the Licence Appeal Tribunal (LAT).
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“This type of alleged behaviour and resulting consumer harm will not be tolerated,” he said.
The dealership did not return calls for comment.
OMVIC alleges the dealership:
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Failed to pay out liens or pay out liens within seven days as ordered by LAT on vehicles traded in by consumers;
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Failed to submit documents or payments to warranty providers (or submit documents or payments within the timeline ordered by LAT), potentially leaving customers with no warranty coverage;
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Failed to provide a $30,000 letter of credit to the Motor Vehicle Dealers Compensation Fund by the date ordered by LAT; and
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Failed to ensure its bookkeeper complete a college course in automotive record-keeping, as ordered by LAT
The council is advising customers who have traded in a vehicle to the dealership to check with their financial institution to ensure any loans were paid out.
Customers who recently bought a vehicle there are also asked to make sure the vehicle does not have an unexpected lien. That information can be found through ServiceOntario or via a CARFAX Canada CarProof Vehicle History Report.
In addition, anyone who recently purchased a vehicle from Eastside Better Used Cars that included an extended warranty is urged to contact the warranty provider to ensure they have coverage. OMVIC is also warning consumers not to do business with the dealership because they won’t be protected by the motor vehicle dealers’ compensation fund.
Customers who want more information can contact OMVIC at 1-800-943-6002 ext. 3942.
