Accurate documents, including a compliant bill of sale, increase transparency and build trust with consumers. Record accuracy is critical, in case a dispute arises. Ensuring that the correct information is being recorded on bills of sale and financing applications provided to financial institutions will protect the consumer, your salespeople and business.
Automotive businesses have an obligation to create and maintain complete and accurate financial records (Consumer Protection Act, Section 132(1), Automotive Business Regulation (ABR) Section 9). This includes, but is not limited to, a bill of sale. The bill of sale must accurately reflect the nature of the transaction and there are specific items that must be included, as listed in the ABR Sections 31.2(1) and (2). A bill of sale checklist is available on amvic.org to help your business address the requirements.
Automotive business documents are reviewed during an AMVIC inspection. Inspectors will examine sample transactions from the previous three-year period, which must be made available to the inspector. Documents examined could include, but are not limited to: advertisements, MFAs, bills of sale, consignment agreements, repair invoices, banking records, vehicle inventory, payroll records and GST remittances.
AMVIC is reminding all licensees that it is illegal to provide fraudulent information to a finance company or financial institution in order for consumers to be approved for financing. An example is misrepresenting the trim level on a vehicle as higher than it actually is to have a consumer approved for a higher loan amount, sometimes known in the automotive industry as “power booking”.
AMVIC has once again joined the Competition Bureau’s Fraud Prevention Month campaign, educating consumers and industry on how to recognize, reject and report fraud. Join the conversation online: follow AMVIC and #FPM2022 on Twitter and Facebook or visit amvic.org for more information.