Claim fund for the property, motor, auction and debt collector industries
The claim fund was setup to assist consumers affected by loss in the property, motor, auction and debt collector industries.
A consumer may seek compensation from the claim fund in certain situations if they lose money because of your actions, or failure to act.
Circumstances
Consumers can seek compensation from the claim fund if you are:
- a real estate agent
- a resident letting agent
- an auctioneer
- a chattel auctioneer
- a motor dealer
- a debt collector or process server.
We recommend that they first try to settle their claim through your complaint process. If you can’t resolve the dispute, they can lodge a written claim with us.
Types of claim
Customer may claim
A customer can make a claim if you:
- don’t deal with trust account money properly (e.g. don’t put their deposit in your trust account)
- make false or misrepresentative claims (e.g. lie about a vehicle’s year of manufacture or distance travelled, or details about a property)
- don’t return their deposit (or trade-in vehicle)
- don’t disclose a beneficial interest
- don’t return their money, deposit or property to them if they cancel during a cooling-off period or because you didn’t fulfil your legal obligations
- steal or misuse money or property they give you to pass on to someone else (such as transfer duty)
- don’t forward residential bond money to the Residential Tenancies Authority
- don’t guarantee clear title on a vehicle you sell.
Customer may not claim
A customer can’t make a claim if:
- you don’t honour the statutory warranty on a used vehicle (this is dealt with by QCAT)
- they agreed that you could invest it (even if you steal or misuse the money)
- you are a property developer (or employed by one)
- you didn’t tell them about your relationship with a service provider that you recommended they use (such as a solicitor)
- they didn’t provide all the information you need to get from a prospective buyer
- they are also a licensee, and were dealing with you as part of their job
- they are a financier of your motor dealer business.
Process after lodgement
We will notify you when we get a valid claim that involves your business. You will have the chance to settle the claim or to respond.
We may investigate the claim further to get more information.
Once we have all of the information, we will:
- make a decision if the claim is simple or straightforward
- refer more complex matters to QCAT.
If we decide in the customer’s favour, we will pay them from the fund. If you want to appeal the decision, you must do this within 28 days.
After we pay the claim, we will contact you to repay the debt to the fund. If you do not repay the debt, this can affect your licence and ability to conduct business.