The Motor Car Traders Guarantee Fund is a trust account established under section 74 of the Motor Car Traders Act 1986 (the Act).
For information about when a claim can be made against a motor car trader and how to apply for compensation, view Compensation claims - motor cars.
Purpose of the fund
The Motor Car Traders Guarantee Fund meets the cost of:
- successful claims made by persons who have suffered a loss if a motor car trader fails to comply with certain conditions of the Act
- regulating motor car trading (to protect the Victorian public).
Money for the fund comes from motor car traders’ licensing fees, and penalties paid for breaches of the Act.
Claims for compensation from the fund are heard by the Motor Car Traders Claims Committee.
Role of licensing fees
Licence fees paid by motor car traders are deposited into the Motor Car Traders Guarantee Fund.
The fund will seek to recover any amount paid out against the licensee. If the licensee is a company or partnership, the fund will seek reimbursement from the company directors or partners as the case may be.