A class action lawsuit has been filed against the transmission repair company for allegedly violating consumer protection laws by charging illegal estimate fees to consumers. The lawsuit was filed on behalf of Ontario consumers who had repairs carried out by the company and
its franchisees.
Consumer protection laws in Ontario prohibit repair shops from charging estimate fees if they go on to carry out actual repairs. The lawsuit claims Mister Transmission charged illegal estimate fees of $550 plus taxes to consumers who had transmissions fixed at its repair centers.
"There have been some changes to the Consumer Protection Act in Ontario that affects this case," says Toronto lawyer Brian Osler, "and more importantly, the case affects the interpretation of the act itself."
Osler explains that the Mister Transmission case arose a few years back, when the motor vehicle repair shops were governed by the Motor Vehicle Repair Act. The law was repealed and the act was folded into the Consumer Protection Act.
If you are a vehicle repair shop, similar rules comply.
"The industry itself doesn't have a sterling reputation and is shadowed by concerned consumer issues," says Osler. "A lot of repair shops don't take the time to understand the rules--the legislation is straightforward but repair shops don't find out their legal obligations."
When a consumer takes their vehicle into a shop for a major repair, they usually receive an estimate first. A repair shop has to give an estimate and they usually charge a fee. The Mister Transmission case relates to estimates and on this issue the law is clear: as soon as you authorize repairs, the law says the consumer cannot be charged an estimate.
"Mr. Transmission has high estimate fees, about $500-$600 plus taxes, which should be deducted from the repair bill," says Osler. "The law is designed to give consumers the ability to find out what is wrong with their car and the ability to get it repaired at a reasonable cost; big companies and small companies have an obligation to comply by the law."
In Ontario there are about 60 Mister Transmission companies and only the franchises in Ontario are affected and included in this lawsuit. "If the consumer wants to get involved in the class claim, they should gather their bills and make notes regarding what they were told with the estimate and save a copy of their invoice," advises Osler.
