The MTA has been working to protect members, recently introducing a Repair Authority document for use with customers.
The Auto Repair Division Chair, Michael McMichael agrees that the Repair Authority document is extremely important and that everyone should be using it saying, “it sets out an understanding between us repairers and our customers. It puts you in a strong position legally if a dispute should arise as we do live in a world of litigation”.
The MTA Repair Authority document sets out your mutual obligations and accurately describes what your trading terms will be in any of the events described. These include:
- Your payment terms and actions you may take in the event a customer doesn’t pay
- Explaining what diagnose time is and time that they may be required to be paid for (at your discretion)
- Warranty provisions and what is required in the event of a claim
- Your limit of liability if they refuse any recommended parts or services
- Customer supplied parts and the use of reconditioned parts
- Storage charges
- Your duty of care under the Road Traffic (Light Vehicle Standards) (2018) Rules 19,20 to report any serious defects to DPTI or SAPOL.
- Sub-let repairs
- Loss of data in the customer’s vehicle
Following further meetings with the Australian Financial Securities Authority (AFSA), in the event that you release the vehicle prior to payment for your services this authorises you to record the debt against the vehicle on the Property, Plant and Securities Register (PPSR).
The MTA Repair Authority document puts the control back in your hands. You can use your discretion as to which terms you enforce. The most important thing is that this document gives the customer enough information to make an informed decision about accepting your terms prior to any work commencing, giving you the upper hand should you need to pursue payment.
The Repair Authority is available from MTA print by ordering through firstname.lastname@example.org or by calling 8241 0522.
If you have any questions about the document please call to discuss it with your MTA team by clicking here.