In December 2007, work on the new accreditation scheme started. From the complaints gathered from consumers who have had trouble with car dealers, CASE was able to identify the most common errant practices that vehicle dealers have used against consumers. This accreditation scheme was designed in a bid to differentiate the trustworthy vehicle dealers who offer transparency and good business practices in their dealings with consumers.
Model agreements were designed to be used by accredited vehicle dealers to add greater transparency to the process of purchasing a motor vehicle. These 4 contracts would clearly spell out the liabilities of each party, as well as the terms and conditions with regards to the purchase of a motor vehicle.
The Motor Industry Disputes Resolution Centre (MIDReC) has also been setup to handle mediation and adjudication for complaints against accredited motoring businesses. Accredited motoring businesses would be contractually bound to mediation and adjudication as decided by MIDReC.
A motoring business that achieves CaseTrust-SVTA accreditation is certified as a business that possesses the foundation for good sales practices and standards. The business will have the following mechanisms in place:
- Clear Fee PoliciesClearly articulated and documented policies on fees and fee refund. These must be fully disclosed to theircustomers and adhered to according to the terms and conditions of the contract between the business andconsumers.
- Well-Defined Business Practices and SystemsA redress system with proper and clearly defined dispute resolution mechanisms for the business and consumers. This will include mediation by the Motor Industry Disputes Resolution Centre (MIDReC), CASE Mediation Centre, and recourse to the Small Claims Tribunals and the Courts, if necessary.An insurance bond capped at S$50,000 to protect the customer’s fees and deposits paid in the event of an unresolved dispute.
- Well-Trained PersonnelThe business must ensure that it has trained sales staff who do not practice unethical sales tactics and are able to provide good customer service.
What is the insurance bond for?
All accredited motoring businesses will be required to purchase an insurance bond in the amount of $50,000. The insurance bond is one of the many ways that an accredited motoring business takes to show its commitment to their customers.
In the event a consumer has an unresolved dispute with an accredited motoring business the matter can be referred to MIDReC where an adjudicator or panel of adjudicators will decide on the facts and merits of each case. If the decision is made in favour of the consumer, a payout will be made from this insurance bond.
Interested to be CaseTrust-SVTA Accredited Business?
Apply for the CaseTrust-SVTA accreditation now to show consumers your company’s commitment towards fair trading and transparency. Click here to download the CaseTrust-SVTA Accreditation Scheme for Motoring Businesses Application and Information kit.
The Motor Industry Disputes Resolution Centre or MIDReC in short is an independent and impartial institution specializing in the resolution of disputes between motoring businesses and consumers. Consumers who have an unresolved dispute with an accredited motoring business can lodge their claim/dispute with MIDReC.
What is MIDReC’s Dispute Resolution Process?
The dispute resolution process of MIDReC comprises of Mediation (1st Stage) and Adjudication (2nd Stage).
Mediation (1st Stage) When a complaint is first received, it would be handled by MIDReC’s Case Manager. The complainant and the accredited business are encouraged to resolve the claim/dispute in an amicable and fair manner. In appropriate cases, the Case Manger mediates the dispute between parties.
Adjudication (2nd Stage) Where the dispute is not settled by mediation, the case is heard and adjudicated by a MIDReC Adjudicator or a Panel of Adjudicators. Accredited businesses are contractually bound to honour the decisions made by MIDReC.
How do I lodge a claim with MIDReC?
Consumers can file their claims via the following means:
- Please send an email to email@example.com
- Write to
9 Jurong Town Hall Road
#04-18/19 Trade Association Hub
Jurong Town Hall
- Fax to +65 6258 5811
- Alternatively, you can file a claim in person at MIDReCOpening hours
Mondays â€“ Fridays (except Public Holidays) 9:00am to 5:00pm
For visitors, please contact MIDReC at +65 6250 7150 to make an appointment.
For further enquiries you can contact MIDReC at +65 6250 7150