Word of Advice

30 July 2007

The Motor Vehicle Disputes Tribunal (2/2)

Last time we looked at the general Disputes Tribunal. This time we take a look at the Motor Vehicle Disputes Tribunal (MVDT) which, as you may have guessed by the title, deals with disputes involving motor vehicles.

If you’ve bought your vehicle from a licensed dealer and are now in dispute with them you can take a claim to this tribunal. You can even take a claim against a vehicle trader who is not registered, if you can show they were in the business of selling motor vehicles.

What can I take a claim to the MVDT for?

• quality issues, faults with the vehicle - covered by the Consumer Guarantees Act or Sale of Goods Act
• misleading and deceptive conduct, false representations – covered by Fair Trading Act
• if you were sold a vehicle by an unregistered motor vehicle trader that was subject to an undisclosed security interest.

The MVDT can hear claims up to $50,000 – or more if both parties agree in writing.

What can I claim for?

At the MVDT you can claim for:

• the MVDT to order that the trader repair your vehicle
• the money you have paid someone else to repair your vehicle
• a refund of all of the money you paid for the vehicle, if it is a serious fault or a serious false representation
• compensation for the loss you have suffered as a result of the fault, the problem, or the false representations. This can be the cost of any repairs or any loss in the value of the vehicle – e.g. if the vehicle was represented as a 1998 model and you found out that it was actually a 1996 model
• any extra losses or costs to you that directly resulted from the problem with the vehicle – e.g. the cost of renting a vehicle or hiring taxis while your vehicle was being repaired.

The MVDT can award costs against a party who behaves improperly during the settlement process, or against you if the tribunal finds that your claim is frivolous or if you fail to attend without good cause.

How is the claim processed?

The MVDT must refer your claim to the trader by sending them a copy of the claim form along with a notice requiring them to discuss the claim with you. The trader then has 14 days to file a report with the MVDT on the outcome of these discussions and must include in this report either:

• a written statement from you saying that the claim has been settled, or
• a statement that the claim is not settled.

If the claim is not settled, or if the MVDT adjudicator does not hear back from the trader within 14 days, then you will be notified of the date and time of the hearing. The MVDT hearing will be held at a venue nearest to where the motor vehicle purchase took place. If the transaction took place on the internet, the place closest to the trader's premises.

At the hearing

The hearing is in private. It is not open to the public. The hearing is held in front of an adjudicator (a barrister) and an assessor (who provides technical mechanical expertise). They are both independent officers of the court.

The hearing is not formal. No lawyers are allowed, and you must present the case yourself unless you get permission for someone to represent you. An adjudicator is responsible for running the hearing and making the decision.

After the hearing

The adjudicator must give the decision in writing, including the reasons for the decision. If the MVDT decides that the trader must pay you money or fix a problem, and the trader does not do this within the required time, you can go to the District Court to request enforcement of the decision.

How do I make a claim?
If you are unsure as to whether you can make a claim in the MVDT, contact the MVDT staff for information.

You can get information and claim forms by calling free-phone 0800 FORMVDT (0800 367 6838) or by writing to PO Box 5027, Wellington. To lodge a claim you will need to complete and file the claim form with the MVDT, along with a filing fee of $50.

The Motor Vehicle Disputes Tribunal was created under the Motor Vehicle Sales Act 2003. Further information on the MVDT can be found on the Ministry’s website.