Alberta finds auto watchdog sitting on $4M compensation fund, replaces leader

File: Cars for sale at a dealership.
File: Cars for sale at a dealership. AP Photo/Brennan Linsley, File

The Alberta government is replacing the head of its auto sales regulator after a report cited problems, including a multimillion-dollar compensation fund with almost no payouts.

Service Alberta Minister Stephanie McLean confirmed John Bachinski will be replaced with an interim CEO at the Alberta Motor Vehicle Industry Council.

The council is an independent agency that reports to the government and helps protect consumers from unscrupulous practices when buying or repairing their automobiles.

READ MORE: Province announces review of Alberta Motor Vehicle Industry Council

Those who are wronged can apply for relief from a compensation fund.

But McLean and the chair of the council say few people know about the fund and that issue, tied to red tape and other logistical problems, have led to few payouts.

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The fund has reached its $4 million limit, but paid out just over $2,000 last year.

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