Home > Motor industry > Legal requirements > Claim fund

Claim fund

The Claim Fund was established under the provisions of the Property Agent and Motor Dealers Act 2000 (the Act). A client can make a claim against the fund if they suffer a financial loss because of certain actions of a motor dealer, auctioneer or their employees.

If your client has a dispute with you, we recommend that they first try to settle their claim through your complaint resolution process. If the dispute remains unresolved, they can lodge a written claim with us.

They can make two types of claims in relation to used motor vehicles:

a minor claim of $10 000 or less
a major claim of more than $10 000.

We decide minor claims, and refer major claims to the Commercial and Consumer Tribunal for determination.

A customer can make a claim if you:

do not properly deal with trust money
do not guarantee clear title on a used motor vehicle, i.e. you sell a used motor vehicle that is encumbered or stolen
buy a used motor vehicle that a client placed with you for sale on consignment without disclosing your financial interest (beneficial interest) in the transaction
do not return the refundable deposit or trade-in vehicle under the 24 hour cooling-off period provision
do not put them back into the position they were in before they purchased the used vehicle if they avoided the contract, i.e. because you did not give them the cooling-off notice immediately before they signed the contract
misrepresent a used motor vehicle in some way, such as the make or model, year of manufacture or distance travelled
steal, misappropriate or misapply property or money they give you as agent for someone else, e.g. you do not forward stamp duty and transfer fees to Queensland Transport.

They cannot make a claim if:

you steal, misappropriate or misapply money in trust accounts after they authorise you to invest the money rather than leave it in your trust account
you do not disclose your relationship to a professional service provider that you recommend they use
they are a licensee under the Act and suffer a financial loss in the course of performing an activity, or carrying on business as a licensee
they are a financier of a motor dealer’s business
you do not honour the statutory warranty on the used vehicle they purchase. The Small Claims Tribunal handles these disputes.

Last reviewed 16/09/2009