Peoples Choice Warranty (PCW) and Related Companies Not Secured Under MVDA for Warranty Sales

Published On
September 4, 2025
Category

The Ontario Motor Vehicle Industry Council (OMVIC) is alerting registrants that Peoples Choice Warranty (PCW) and its related companies, including PMI Alliance Group, do not have a Letter of Credit (LOC) on file and are therefore not secured under the Motor Vehicle Dealers Act, 2002 (MVDA).

OMVIC registrants cannot sell or facilitate the sale of a PCW extended warranty to consumers unless the warranty is insured by an insurer licensed under the Insurance Act.

If a warranty company goes out of business, the dealer may be responsible for paying related claims, including amounts beyond those covered by the LOC. Registrants are encouraged to confirm whether PCW is insured under the Insurance Act before selling or promoting its products. To verify a provider’s insurance status, contact the Financial Services Regulatory Authority of Ontario at 416-250-7250 or [email protected].

What Dealers Need to Know

Always confirm your third-party warranty provider is either insured or has the required LOC on file with the Motor Vehicle Dealers Compensation Fund (MVDCF), overseen by OMVIC.

Registrants can verify whether a warranty company is secured by an LOC by contacting the Industry Standards & Conduct Department at 1-800-943-6002. Selling warranties from unapproved providers will result in compliance action.

Under the MVDA, dealers may only sell extended warranties if the provider of the warranty is:

  • Insured, or
  • Secured by an LOC

What is an Extended Warranty

An extended warranty is a contract that covers the cost of repairing or replacing vehicle parts (including labour) beyond what is covered by law or the manufacturer’s warranty.

For any questions or further clarification, please contact the Industry Standards & Conduct Department at 1-800-943-6002.