car defects Canada, car disputes Canada - Canadian Motor Vehicle Arbitration Plan

CAMVAP

MEDIA RELEASE

OF INTEREST TO JOURNALISTS AND EDITORS WHO WRITE ABOUT BUSINESS, CONSUMER ISSUES OR AUTOMOTIVE ISSUES

CANADIAN MOTOR VEHICLE ARBITRATION PLAN

COPIES OF THE MEDIA RELEASE IN WORD FORMAT CAN BE OBTAINED AT www.camvap.ca (.doc)

10 YEARS OF SERVICE TO CANADIAN VEHICLE OWNERS

Ten years ago, the way to solve a problem with the manufacturer of your vehicle changed. The Canadian Motor Vehicle Arbitration Plan was introduced across Canada in May of 1994. Quickly becoming known by its acronym CAMVAP, the program commenced operations in Ontario; by October consumers in all the provinces and territories except Quebec had access to this unique dispute resolution program. In 2000, Quebec joined the program making it truly Canada-wide.

Recognizing the lengthy, cumbersome and expensive nature of traditional legal remedies, it seemed clear that a faster, cheaper, and less adversarial alternative would benefit all parties: manufacturers, who would incur lower legal costs and more importantly satisfy and retain their customer; consumers, who would have a no-cost, quick and independent arbitrator to hear their concern; and the provincial governments, where the program would reduce workload pressure on the courts and consumer affairs departments.

The success of CAMVAP demonstrates the foresight of the manufacturers, which after assessing the U.S. lemon law system, worked with the provincial governments to develop a truly national "better way" of dealing with consumer defect and warranty complaints.

While achieving that success was not easy, and it took considerable cooperative effort on the part of all participants for CAMVAP to be accepted and implemented, it is clear that CAMVAP met, and continues to meet, the needs of motor vehicle consumers on a national basis

What is CAMVAP? CAMVAP is an arbitration program that allows consumers to resolve disputes about manufacturing defects or the way in which the manufacturer is implementing its new vehicle warranty. CAMVAP has contracts with about 120 independent arbitrators across the country. Some 75% of the arbitrators are lawyers. The others come from a varied list of occupations and professions including engineers, accountants, business people and university professors. CAMVAP arbitrators are experienced and capable; almost all of them are on the rosters of other arbitration programs across the country.

Fast Facts

Handled over 73,000 inquiries since 1994

Held 4,622 hearings in 446 communities across Canada

Over 70% of all cases in 2003 resulted in an award or settlement favouring the consumer

77% Consumers who come to CAMVAP rate the program as Excellent or Very Good (2002 figures, 2003 figures will be available in July)

CAMVAP does not set a minimum threshold for eligibility; consumers must follow the dispute resolution process set out in the owner's handbook and first give the dealer and the manufacturer an opportunity to resolve the issue.

Vehicles of the current model year plus the last four model years that have been purchased from an authorized dealer are eligible for CAMVAP, whether they are owned or leased, purchased new or used. For example, vehicles from 2000 are eligible until September 30, 2004, as long as they have travelled less than 160,000 km. If the arbitrator finds in favour of the consumer, possible remedies include buyback, repairs, refund for repairs already made, and refund for out-of-pocket expenses. Vehicles with under 25,000 km on the odometer are eligible for a buyback without a reduction for use. For vehicles with between 25,000 kilometres and 60,000 km on the odometer, buyback carries with it a reduction for use.

The CAMVAP process is simple and transparent. The consumer makes his or her case to the arbitrator. The manufacturer cross-examines the consumer and his or her witnesses. The manufacturer in turn makes its case; the consumer then can cross-examine the manufacturer and its witnesses. Normally, the vehicle is then inspected by all present at the hearing. A test drive will be taken if one is appropriate to the claim. If needed, the arbitrator may order an independent technical inspection of the vehicle. Finally, when all the evidence has been heard, the arbitrator decides the case.

Since 1994 CAMVAP Arbitrators have Ordered

696 Vehicles bought back with $13,546,468 paid to consumers

$525,550 paid to consumers as reimbursements for repairs

1,330 orders issued for repairs at the manufacturer's expense

CAMVAP services are provided at no cost to either the consumer or to the provincial governments. The cost of the program is paid by the manufacturer in advance, on an annual basis, through formulas based on their case numbers. Procedures are in place to separate completely the funding of the program from its day-to-day operations. CAMVAP's annual operating costs are low, amounting to about $1.00 per new vehicle sold in Canada.

CAMVAP's five guiding principles are that the program is Fast, Fair, Friendly, Final and Free. Speed is an important factor underlying the level of consumer satisfaction, and the program continually strives to improve in this area. In 2003, the average time from receiving the consumer's application to the arbitrator's award being issued was 58 days for cases that did not require a technical inspection. Technical inspections add about 20 days to these results.

CAMVAP is an independent adjudication process, similar but far less formal than the courts. CAMVAP does not advocate for either the consumer or the manufacturer. The arbitrator hears both sides of the case and makes a decision that brings closure to the matter. The arbitrator's awards are binding, subject only to limited appeal or judicial review if the arbitrator makes an error in law. The arbitrations are governed by the provincial Arbitration Acts (Civil Code in Quebec).

Finally, CAMVAP is an open program, publishing a comprehensive annual report that is posted on its website. It also contracts annually with an independent research firm to survey all customers. This survey generates metrics that provide standards against which the program monitors its performance. This allows CAMVAP to work at continuously improving the way it operates. The key results of the survey are published as part of the annual report.

In addition to the support of the domestic and international manufacturers and their dealers, CAMVAP has the support of the provincial and territorial governments and of consumers. . The 11 member Board of Directors consists of 4 representatives from the governments, 4 from the manufacturers, 2 from the Consumers Association of Canada and one from the dealers. The Chair of the Board of Directors is Dr. Jim Savary, an Economics Professor at York University in Toronto and a consumer advocate and representative.

For more information on CAMVAP go to its website at www.camvap.ca or call toll free to 1-800-207-0685.

Media Contact Information

James Savary
Chair, Board of Directors
416-736-2100 ext 88150

Leonard Fortin (en francais)
Directeur, Office de la protection du consommateur
1-418-695-8100

David Adams
Vice-President Policy
Canadian Vehicle Manufacturers' Association
416-364-9333

Bob Armstrong
President
Association of International Automobile Manufacturers of Canada
416-595-8251

Stephen Moody
General Manager
Canadian Motor Vehicle Arbitration Plan
416-499-6923