MVRA code of practice on the road to OFT approval

9/05 25 January 2005

MVRA Ltd's consumer code of practice has successfully completed Stage One of the OFT's Consumer Codes Approval Scheme.

By completing Stage One the code meets the OFT's core criteria which aim to ensure that industry codes of practice will be effective in promoting and safeguarding consumer interests (see note 2). To achieve OFT approval of the code, the second stage will involve testing the code to see whether it is working in practice (see note 3).

MVRA promises to provide the following benefits:

clearer pre-contractual information for customers
all work completed by the repairer has to be guaranteed in writing
protection for consumers where a MVRA member is unable to complete the work
MVRA conciliation service which will help to resolve disputes that consumers cannot resolve directly with a MVRA member
an independent redress scheme (arbitration)
continued monitoring of customer satisfaction through use of Customer Satisfaction Survey so that problem areas can be identified and addressed
a range of sanctions that can be imposed on members for non-compliance with the code provisions
a newly introduced independent disciplinary panel to oversee MVRA's disciplinary procedures, ensuring that the code is complied with and enforced.

MVRA members will be obliged to display the code in their customer reception areas along with a customer brochure advising on matters covered in it.

MVRA will now be invited to provide the OFT with evidence that these processes are working. Only codes that demonstrate that they are effective in promoting consumer interests will be approved and be entitled to display the OFT Approved code logo and official promotion.

In acknowledging the completion of Stage One, Penny Boys, OFT Executive Director, said:

'I welcome MVRA's work to develop their code of practice and their desire to offer a higher standard of consumer protection to their customers. I hope they will be successful in achieving OFT approval.'

NOTES

1. MVRA (formerly the Motor Vehicle Repairers Association) supports 1,830 repairers dealing with motorcycle repairs, crash repairs, servicing, MOT's and commercial vehicles.

2. The OFT's Consumer Codes Approval Scheme (CCAS) aims to promote and safeguard consumers' interests by helping consumers identify better businesses and to encourage those businesses to raise their standards of customer service. The core criteria cover the organisation of the code sponsor, the preparation and content of the code, complaints handling, monitoring, compliance and publicity.

3. The CCAS consists of two co-dependent stages:
Stage One - The code sponsor makes a promise that its code meets the OFT's core criteria. The code sponsor must make sure its code contains measures designed to remove or ease consumer concerns and undesirable trading practices in its sector. At this stage, the code sponsor is not allowed to claim OFT approval for its code because there has not yet been an evaluation of how well the code is working in practice.

Stage Two - The code sponsor must prove its code lives up to the initial promise it made. The burden of proof lies with the code sponsor. The code sponsor must also show that the code is being effectively implemented by all who claim to adhere to it and that consumer disputes are properly resolved. When this burden of proof has been met, OFT approval of the code and promotion will follow.

4. See the Consumer Codes Approval Scheme section on the website for further information.

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