Alberta's provincial automotive regulator has cancelled Treadz Auto's business licence after allegations the company has not been paying some owners of the consignment vehicles it sold and CBC News has learned police have seized a vehicle sold through the company.

The Alberta Motor Vehicle Industry Council (AMVIC) also cancelled the three salesperson registrations connected to the business, which means neither Treadz Auto nor anyone acting on its behalf is authorized to sell, consign, lease, repair or act as an agent or broker for wholesale vehicles.

AMVIC says says Treadz Auto is now being investigated by the regulator as well as the Calgary Police Service.

Earlier this week, a CBC News investigation revealed allegations by several customers of Treadz who claimed the company has not paid them for their vehicles.

The Calgary Better Business Bureau also suspended the car dealership's accreditation on Friday.


Joanne Toller sold her Audi convertible on consignment at Treadz Auto. (Joanne Toller)

There are nine complaints against Treadz Auto listed on its Better Business Bureau profile.

Police seize purchased vehicle

One customer who bought a vehicle from Treadz Auto says her 2010 GMC Terrain has now been seized by police.

Johanne Byrk says she's upset at the whole situation.

"I was devastated, I loved that vehicle. I didn't think like that because I've dealt with Treadz in the past and I've never had any issues."

"I figured they were looking out for the consumer and they weren't," Byrk said. "So people like me, who are single parents, are now struggling to figure out what to do."

The notification slip issued by police lists the reason for the seizure as "stolen vehicle."

Sellers say no payment from car sales

Treadz Auto takes care of the showings and sales of vehicles for a consignment fee and under Alberta law, consignment companies have 14 days to pay owners for their vehicles.

Joanna Toller says she sold her 2005 Audi through Treadz Auto and that she picked the company because they had been around longer than many of the other dealerships in Calgary.

The car sold in June for $12,000 but Toller says she has not yet seen any of the money.

"I've talked to them several times and they keep promising that the money is coming, but it hasn't come," she said.

CBC News contacted Treadz Auto Group for comment but the calls were not returned.

Anyone with concerns regarding Treadz Auto are being urged by AMVIC to immediately contact their consumer services team at 1-877-979-8100 ext. 2002.

Customers should also contact the Calgary Police Service's non-emergency line at 403-266-1234 or go to any Calgary police office and quote file #14286151.