Ontario will revise the Motor Vehicle Repair Act on July 30, 2005, primarily to give consumers more protection on the issue of repair estimates.
The primary thrust of the changes is to make it harder for an auto repair company to do work without providing a detailed written estimate to the consumer, or to exceed the maximum repair cost quoted in a non-written manner, which is usually a phone conversation.
In a non-written agreement, the work had to be approved, but not the cost. Now both have to be approved.
''The new act tries to make it clearer for the consumer through a written estimate, or a maximum amount over the phone,'' says Rob Harper, a senior policy advisor in the Ministry of Consumer and Business Affairs. ''That's the main thing. It requires that before work starts, a consumer must authorize the work required.''
Repair shops cannot charge for work without giving the consumer a written estimate, says Harper. ''The only exception is where an estimate is offered, the consumer declines the estimate, and authorizes a maximum amount, and the final cost does not exceed the maximum amount.''
If there is a fee charged for an estimate, Harper adds, it must be disclosed in advance.
As in previous regulations, the revised Motor Vehicle Repair Act says that, ''when an estimate is given for repair work, the repairer cannot charge a final amount that exceeds the estimate by more than 10 percent.''
Changes to the act also quadruple the amount of time (from six months to two years) that the Ministry of Consumer and Business Affairs can begin legal proceedings against the service provider.
On top of that, says Harper, the Motor Vehicle Repair Act is no longer a stand-alone law, but part of a bigger bill with sharper teeth. That would be the Consumer Protection Act, 2002.
''There are more penalties under the new rules,'' Harper explains, ''including larger maximum fines. As well, ministry also has more administrative powers that it can bring to bear to help enforce compliance, and the courts can offer compensation for the consumer.''
Though the start of this legislation is still some months away, Harper believes it's better for the service providers ''to be in compliance now than after the fact. They need to get their heads around the fact that they must have either a detailed estimate or a maximum amount approved by the consumer, or they're not going to be paid for the work they do.''
For a more detailed look at the new Motor Vehicle Repair Act, go to http://www.gov.on.ca/ and search the Ministry of Consumer and Business Affairs site.
The primary thrust of the changes is to make it harder for an auto repair company to do work without providing a detailed written estimate to the consumer, or to exceed the maximum repair cost quoted in a non-written manner, which is usually a phone conversation.
In a non-written agreement, the work had to be approved, but not the cost. Now both have to be approved.
''The new act tries to make it clearer for the consumer through a written estimate, or a maximum amount over the phone,'' says Rob Harper, a senior policy advisor in the Ministry of Consumer and Business Affairs. ''That's the main thing. It requires that before work starts, a consumer must authorize the work required.''
Repair shops cannot charge for work without giving the consumer a written estimate, says Harper. ''The only exception is where an estimate is offered, the consumer declines the estimate, and authorizes a maximum amount, and the final cost does not exceed the maximum amount.''
If there is a fee charged for an estimate, Harper adds, it must be disclosed in advance.
As in previous regulations, the revised Motor Vehicle Repair Act says that, ''when an estimate is given for repair work, the repairer cannot charge a final amount that exceeds the estimate by more than 10 percent.''
Changes to the act also quadruple the amount of time (from six months to two years) that the Ministry of Consumer and Business Affairs can begin legal proceedings against the service provider.
On top of that, says Harper, the Motor Vehicle Repair Act is no longer a stand-alone law, but part of a bigger bill with sharper teeth. That would be the Consumer Protection Act, 2002.
''There are more penalties under the new rules,'' Harper explains, ''including larger maximum fines. As well, ministry also has more administrative powers that it can bring to bear to help enforce compliance, and the courts can offer compensation for the consumer.''
Though the start of this legislation is still some months away, Harper believes it's better for the service providers ''to be in compliance now than after the fact. They need to get their heads around the fact that they must have either a detailed estimate or a maximum amount approved by the consumer, or they're not going to be paid for the work they do.''
For a more detailed look at the new Motor Vehicle Repair Act, go to http://www.gov.on.ca/ and search the Ministry of Consumer and Business Affairs site.