Ontario student speaking out after signing $14K loan for light therapy device

An Ontario student is on the hook for $14,000 after signing loan for a 'therapy' light.

An Ontario student is speaking out after she discovered she was on the hook for a $14,000 a light therapy device she later regretted purchasing.

While walking through a mall last November, Meredith told CTV News she was offered free skincare samples and was told she was eligible for a free skin analysis.

The company that manufactures the skincare products given to the woman, KB Pure Products, has since contacted CTV News to say that it is not connected in any way with the company that sold Meredith the light therapy device.

During the session, Meredith said a salesperson used a red-light therapy device on her face.

“This is where they introduced the machine and started putting it on my face without me telling them to,” said Meredith.

At the time, Meredith agreed to pay almost $1,400 for the device, but that was only a down payment. When Meredith got home, she realized she had signed a contract for a $10,000 loan at 25 per cent interest.

With the deposit, it was a total commitment of about $14,000.

“I told them I can’t pay $14,000,” said Meredith, adding that, “I felt scared because I don’t have that money. I’m just a student.”

Meredith signed the contract with The Soap Tree. She thought she had a cooling-off period where she could return the product if she changed her mind.

However, when she returned to the mall, the store from which she bought it was closed, and the doors were locked.

“The store is not there. It’s completely empty, and there is no furniture. There is no product, and the doors are closed,” said Meredith.

If someone comes to your home and you sign a contract, there is a ten-day cooling-off period where you can return an item or cancel a service. However, it does not apply if you go to a retail store.

Under consumer protection laws in Ontario, cooling-off periods apply when signing a contract for a product or service in your home, joining a fitness club, buying a newly built condo, taking out a payday loan, or purchasing a timeshare.

CTV News reached out to The Soap Tree about Meredith’s situation but did not get a response.

CTV News also reached out to goeasy, the parent company of LendCare, the company where Meredith holds a loan of $10,000.

In a statement shared with CTV News, a spokesperson said, “When a customer returns a retail purchase they financed through LendCare, the merchant must first process and approve the return before the associated LendCare loan can be cancelled.”

“However, following a detailed review of the specific facts in this case — including the merchant’s closure and the information provided to us — we have cancelled this customer’s loan and refunded the associated fees so that the customer has no further obligation.”

The spokesperson added that the company is conducting a review of the merchant and the circumstances surrounding Meredith’s situation “to determine whether any further action is required on our end.”

“We recognize the stress and frustration this situation caused for this customer. Given the circumstances, we decided to resolve this matter in a way that we believe is fair and appropriate for the customer,” the spokesperson said.

Meredith welcomed the cancellation of her contract and getting a refund.

“I’m really grateful for your help. The refund is in my hands, and I’m really happy,” said Meredith, who said she plans to be more careful signing contracts in the future.