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A Brisbane motorhome dealer – who did the wrong thing by a consumer who needed to sell her beloved motorhome due to ill health – has pleaded guilty to 11 breaches of the Motor Dealers and Chattel Auctioneers Act 2014 in the Brisbane Magistrates Court.

Queensland’s Office of Fair Trading (OFT) brought charges against the dealer, Matthew Charles Blackburn. The court sentenced him to two months’ imprisonment suspended for 12 months.

In sentencing Blackburn, Magistrate Clare Kelly also recorded a conviction and permanently disqualified him from holding a motor dealer’s licence or salesperson’s certificate.

The former motor dealer was principal licensee of Blackburn Caravans Pty Ltd (now in external administration), trading as River City RVs in Burpengary on Brisbane’s north side.

The court heard that in May 2017, Mr Blackburn agreed to sell the consumer’s 2010 Jayco Mercedes motorhome on consignment for a minimum of AUD 85,000 and that he would retain a 15% commission on the price it sold for.

Blackburn did not complete the proper appointment to act paperwork, which is required under the Motor Dealers and Chattel Auctioneers Act 2014 in order to protect consumers, and accordingly he was not entitled any reward or expense for this consignment sale.

On 29 July 2017, a buyer agreed to buy the motorhome from Blackburn Caravans Pty Ltd for AUD 95,000, signing a contract on the same day. Payments totalling AUD 95,000 were made by the buyer into Blackburn Caravans Pty Ltd’s general account.

The court heard these funds should have been banked into a trust account so they were protected and held safely for the consumer as proceeds for the sale of her motorhome on consignment.

Neither Blackburn, nor Blackburn Caravans Pty Ltd, held a trust account which is also a requirement under the Act.

Motorhome on the road (not the one in the Queensland case)

The court heard that the defendant went on to dishonestly convert those funds by transferring them into another business account that was already in overdraft.

Blackburn repeatedly lied to the consumer, stating he had not sold the motorhome and that he was waiting on payment for it, to avoid paying her.

He also told the consumer he had to accept a lesser amount in order to secure the sale, when he actually received a much higher amount.

The court heard that during the investigation Mr Blackburn made false statements to the OFT inspectors about the timing of the sale and the amount of money he sold the motorhome for.

Blackburn admitted to the OFT that he did not hold a trust account, and that all sales transactions were administered through a general business account.

Magistrate Kelly noted that Blackburn’s conduct was particularly aggravating because the consumer was a 69-year-old lady with health issues and an ill husband.

She further noted the trader had repaid only AUD 40,400 in “dribs and drabs” over a nine-month period which would have “caused more distress and practical difficulties from the loss over an extended period of time”.

Acting executive director Craig Turner said the sentence highlighted that motor dealers held a position of trust and, if this was breached, offenders would face penalties under the law.

“The penalty handed down is a reminder that motor dealers must act fairly and lawfully, particularly when dealing with trust money,” Turner said.

“Taking advantage of an unwell, elderly consumer, selling their motorhome and not passing on the money in full is not acceptable and the defendant has been convicted for his actions.

“The Office of Fair Trading does not tolerate this type of behaviour and will continue to protect the rights and interests of vulnerable Queenslanders.”

Edited by Peter Needham