Montreal, Quebec – Mercedes-Benz has agreed to drop warranty transfer fees in Quebec, following a request from the Automobile Protection Association (APA).

On April 2, 2011, Mercedes-Benz Canada’s warranty manager George Moffat agreed to drop the fees charged on extended warranties sold to consumers in Quebec. Mercedes-Benz has agreed to send a notification to dealers that the charge of $350 for Mercedes-Benz vehicles and $250 for Smart vehicles will not be charged in future, and also to refund Quebec consumers who paid the fees.

In its letter to Mercedes-Benz, APA argued that a legal precedent prohibiting warranty transfer fees exists in Quebec, established in a class action undertaken by the APA and Quebec’s Consumer Protection Office against Toyota Canada. The decision is binding on other automakers that wish to charge transfer fees on their base or extra-charge warranties in Quebec. The decision does not cover transfer fees charged by third-party warranty companies such as Garantie Nationale or Garantie PPP, the APA said.

The APA said that those who have purchased a used Mercedes-Benz or Smart should ensure that the automaker has the customer’s current address on file, and those who paid a fee to transfer warranty should contact Mercedes-Benz for a refund, having the warranty contract number and vehicle identification number (VIN) on hand. For more information, visit APA.

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