Centre lays down dealership law

By Shaun Inguanzo
A DANDENONG car yard that promotes the fact that it will accept any application for credit was the target of a consumer protest on Saturday.
The Consumer Action Law Centre (CALC) and angry customers lined the pavement outside Motor Finance Wizard on the Princes Highway, Dandenong, handing out pamphlets and offering financial advice to potential Motor Finance Wizard customers.
CALC spokesman Gerard Brody told Star that more than a quarter of the centre’s complaints against car yards were about Motor Finance Wizard.
“The number of complaints about this one business is astounding,” Mr Brody said.
Mr Brody said Motor Finance Wizard offered finance to people who couldn’t afford to repay vehicles but desperately needed one.
He said failure to meet repayments resulted in vehicles being repossessed, and later resold.
Mr Brody said customers had also complained that the interest-free loans were offered on vehicles sold at inflated prices.
The organisation had financial counsellors standing outside the Dandenong Motor Finance Wizard, along with two former customers and CALC staff.
But Motor Finance Wizard spokesman Peter Llewellyn refuted the claims.
“The CALC has stated that in 2007, they received 20 complaints from Motor Finance Wizard customers,” he said.
“This is a very small percentage, considering that Motor Finance Wizard sold 17,000 cars in Victoria in 2007.
“MFW is competitive with its prices. We give customers an upfront cost for the car and that is it.
“We do remind consumers that they do have a choice when purchasing a car. If they are not happy with the price of the cars sold at our yards, we suggest they consider purchasing a vehicle from an alternative dealership.”
Mr Llewellyn said the company had a sound credit model.
“We have an honest and open relationship with regulators. Motor Finance Wizard is constantly updating and providing information to the regulators about what is happening with our company, our current systems and our customers,” the statement said.
“MFW is continuing to work with ASIC to ensure its credit compliance program is the best it can be in terms of providing our customers with the best products and services in the industry.”
Saturday’s protest was the final ‘action’ in the CALC’s campaign, but Mr Brody said those involved would regroup and decide what the next step would be.