Alberta Motor Vehicle Industry Council (AMVIC)

Alberta Motor Vehicle Industry Council (AMVIC)

January 09, 2014 18:30 ET

Alberta Motor Vehicle Industry Council: Offering a loan? Know the law.

EDMONTON, ALBERTA--(Marketwired - Jan. 9, 2014) - AMVIC is reminding consumers that the Fair Trading Act requires salespeople and licensees to be clear and truthful in all verbal and written statements related to a sale or potential sale of a vehicle.

Recent media stories have alleged that automotive businesses have misled consumers about the terms of high interest rates loans they have secured to finance a vehicle purchase. Consumers have alleged that salespeople have told customers that if they accept a high interest loan and make all their payments for a year, then the interest on the car loan may be lowered.

Under Alberta's Fair Trading Act, it is an unfair practice when a supplier does, or says, anything that might reasonably deceive or mislead a consumer. A supplier's misleading statement of opinion is also an unfair practice if the consumer is likely to rely on that opinion to the consumer's disadvantage. If the terms of the loan do not allow re-negotiation, or require that the consumer trade in the vehicle in order to re-negotiate, it would be an unfair practice to advise the consumer that the interest of the loan may be lowered without fully disclosing the conditions under which this may, or may not, occur.

Dealerships are also required to fully disclose all the terms of a loan, including the total cost of financing.

Consumers should clearly understand the cost of the vehicle that they are buying. It is important to review a contract, i.e., a bill of sale, to ensure it includes all terms and conditions that may have been offered or discussed. For other tips on buying a vehicle, visit www.amvic.org/consumers."

Albertans are welcome to contact AMVIC with concerns related to the purchase or repair of a vehicle from an automotive business.

About AMVIC: The Alberta Motor Vehicle Industry Council (AMVIC) is a regulatory organization authorized by the Minister of Service Alberta to enforce and administer the following legislation in relation to automotive business: the Fair Trading Act; the Automotive Business Regulation; the Cost of Credit Disclosure Regulation, and the Internet Sales Contract Regulation. AMVIC's mandate is to provide consumer protection in Alberta's motor vehicle industry. AMVIC publishes valuable information and tips for consumers, businesses and salespeople at www.amvic.org.

Contact Information

  • Media inquiries may be directed to:
    Laura Lowe
    Manager of Communications and Education
    Alberta Motor Vehicle Industry Council
    780-468-0476
    LLowe@amvic.org