The province has approved a number of claims for people who lost money and vehicles when Treadz Auto Consignment closed three years ago, but for just a fraction of what they were owed.
The victims say they only got 30 cents on the dollar for the losses they claimed, but say it’s unfair because the government fund has the ability to cover all of the losses.
In 2014, Andrea Scherle and Kim Olowa called CTV Calgary and the provincial auto industry regulator AMVIC that Treadz sold their vehicles, but didn’t pay off their loans.
AMVIC didn’t take any action after receiving the complaint and Treadz ended up disappearing with about 100 cars and a significant amount of money.
Its owner Sean O’Brien awaits trial on 163 fraud and theft charges.
Scherle says it’s been years since they issued a claim for compensation and AMVIC has the ability to settle the debt completely.
However, she and other claimants were told by the regulator that there is a self-imposed ‘$350,000 per incident cap’ in the case.
Scherle, who says she hasn’t gotten anything at all from AMVIC because the regulator says it’s still waiting for lien documents, feels she’s been cheated by the organization and the province.
As a result, she and a number of other Treadz clients have filed a class-action lawsuit against both two years ago. They say AMVIC and the province were negligent in protecting consumers.
The lawyer representing Scherle and the others in the suit say the province has now been stalling proceedings.
“This proves to me how I cannot trust AMVIC, Service Alberta, the government, whether it was the old government or the new government,” Scherle said.
The NDP government blames the PCs for the AMVIC issue and says it is working to correct the problems, but Olowa says the better course of action would be to just pay people the proper amount.
“That’s what’s really frustrating here; AMVIC dropped the ball from the start. There’s been a lot that’s come to light.”
Service Alberta Minister Stephanie McLean, who is in charge of AMVIC, admits there are issues in the agency and the compensation fund.
“We take these concerns very, very seriously.”
McLean says she couldn’t comment further on the claims because of the lawsuit, but acknowledged that AMVIC’s structure is not in the best interest.
She did say that the compensation fund that is made up of a $6.25 levy on every car purchase will definitely change.
AMVIC has a three-year waiting period for payout and has only ever paid out $10,000 to victims.
(With files from Lea Williams-Doherty)
