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VACC's plan to steer clear of VCAT traffic jams

23 April 2024

The Victorian Automobile Chamber of Commerce (VACC) understands the frustrations faced by consumers and licensed motor car traders (LMCTs) when resolving disputes. That's why our 2024-25 Victorian Pre-Budget Submission includes a key request – to direct residual funds from LMCT annual licensing fees towards establishing a VACC-administered ‘Super LMCT-Consumer Complaints Unit’.

Our proposed unit aims to ease the substantial delays plaguing the Victorian Civil and Administrative Tribunal (VCAT). Consumers and LMCTs currently face an astonishing 52-week wait to have issues related to goods and services heard. During this extended period, disputes involving motor vehicles can escalate from minor to catastrophic, causing severe inconvenience and potential financial harm to all parties involved.

VACC recognises LMCT cases account for a mere 1.09 per cent of VCAT's caseload, with more significant issues prevalent in areas such as building, maintenance, and IT. All too often, uninformed advice leads consumers and traders to pursue civil action through VCAT or other courts, exacerbating delays for those with legitimate grievances. This is simply unacceptable.

VACC possesses the technical expertise, a comprehensive understanding of relevant legislation, and the trust and respect of Victoria's 2,200 LMCTs to facilitate efficient resolution of motor vehicle disputes. By moving these cases to our dedicated VACC-administered unit, we believe we can deliver better outcomes for consumers without incurring additional costs to Victorian taxpayers.

VACC recognises the need to address the unregulated private-to-private vehicle market, which accounts for 62 per cent of vehicle acquisitions and often lacks adequate recourse when issues arise. This ‘wild west’ of the motoring world cannot be ignored.

Our proposal calls on the Victorian Government to introduce the VACC-administered Super LMCT-Consumer Complaints Unit. We believe this unit will streamline the resolution process, provide access to justice for all parties, and alleviate the burden on VCAT, ultimately benefiting consumers, traders, and the broader community.

With our deep industry knowledge, expertise in consumer protection laws, and the respect of Victoria's motoring community, VACC is uniquely positioned to drive positive change. We stand ready to work with the government to implement this solution, ensuring that the wheels of justice can once again turn efficiently for all Victorians involved in motor vehicle disputes.

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