Who's at your door?: Homeowners allegedly exploited by Ontario company
I never thought I’d be using my own Toronto semi-detached house in a W5 investigation. Talk about close to home.
But it turned out to be one of the most direct ways to investigate a tool that’s allegedly being misused on a large scale to take advantage of tens of thousands of Ontario households.
Here’s how it works, according to a proposed class action lawsuit that’s taking a web of companies to task on its use of what are called “Notices of Security Interest,” or “NOSIs.”
A salesperson knocks on your door, offering to lease you heating or cooling equipment for your home for a monthly rate. Over the life of the contract, that rate adds up to thousands more than the equipment is worth.
That in itself might just be a bad deal for you. However, several customers we talked to for this story found they had no idea that there would be even higher costs to come.
The company takes out an NOSI, which is a dollar amount, with no limit, registered by the company on your home as collateral for the equipment rented. And they don’t have to tell you.
Some NOSIs reviewed by W5 appear to be worth many thousands of dollars more than the equipment itself.
Some customers we talked to say the NOSI threw a wrench into their plans to sell their homes when they needed to while they were trying to move elderly parents or dispose of the assets of a deceased loved one.
And they said if they wanted to get out of it and sell, many were pressured to pay up. Some already have.
Mohsen Seddigh, the lawyer who is representing customers in this proposed class action, says across all the proposed members of the class, the value of the NOSIs could add up to tens of millions of dollars.
Mohsen Seddigh is the lawyer representing customers in the proposed class action (CTV W5)
We wanted to know: how easy is it to set up? And are there any rules?
We needed some equipment to put in my house, so W5 producer Joseph Loiero purchased a thermostat for $130.
He installed it on the wall with double-sided tape – there’s actually no requirement to hook anything up to be able to register a NOSI, which is like a lien.
W5 producer Joseph Loiero purchased a thermostat for $130 and installed it on the wall with double-sided tape (CTV W5)
Then it was a short trip to Seddigh’s office, who walked us through the steps to register the NOSI on my property, as collateral for the thermostat. It was shockingly fast and easy.
I suggested 10 times what the thermostat was worth. There was nothing stopping us. Seddigh said we could have asked for much more.
And for a nominal fee, we could have gone through with the registration -- meaning I’d have to pay my producer, Joe, an arbitrarily high amount if I ever wanted to sell my home. (We un-registered the NOSI as well – sorry, Joe.)
Registering an NOSI for a thermostat, at an amount 10 times what the thermostat was worth, was 'shockingly easy.' (CTV W5)
The rules that govern this process are set by the Government of Ontario, which says it is looking at changing the system.
And the company involved has denied it’s exploiting anyone.
Unfortunately, many of the people we interviewed in our investigation didn’t have the option to cancel the NOSI like we did – and they are stuck negotiating a pricey hold on their property, often worth far more than the rented equipment was worth.
CTVNews.ca Top Stories
Live updates: What star witness in Trump hush money case has said on the stand so far
The star prosecution witness in Donald Trump's hush money trial took the stand Monday with testimony that could help shape the outcome of the first criminal case against an American president.
Police release 3D images of young child found in an Ontario river two years ago
Police have released a three-dimensional image of a young child whose remains were discovered in the Grand River in Dunnville, Ont. almost two years ago.
Kamala Harris drops F-bomb during White House live-stream
U.S. Vice-President Kamala Harris used a profanity on Monday while offering advice to young Asian Americans, Native Hawaiians and Pacific Islanders about how to break through barriers.
Western University researchers unlock potential 'cure' for ALS
New research out of London, Ont.’s Western University is shedding light on a potential cure for ALS, in which the targeting of the interaction between two proteins can halt or fully reverse the disease’s progression.
Security video caught admitted serial killer disposing of bodies in Winnipeg garbage bins
Security video caught admitted serial killer Jeremy Skibicki on multiple late-night outings, disposing of body parts in nearby garbage bins and dumpsters in the middle of the night.
Canucks' Soucy suspended 1 game, Zadorov fined $5,000 for post-game crosschecks on McDavid
A Vancouver Canucks defenceman has been suspended for a game and another was handed a hefty fine after a scrum broke out at the end of Game 3 against the Edmonton Oilers Sunday night.
'Judge Judy' Sheindlin sues for defamation over National Enquirer, InTouch Weekly stories
'Judge Judy' Sheindlin sued the parent company of the National Enquirer and InTouch Weekly on Monday for a story that she said falsely claimed that she was trying to help the Menendez brothers get a retrial after they were convicted of murdering their parents.
'Ready to go': Fort McMurray residents prepared for evacuation as crews battle nearby wildfire
An evacuation alert remains in place in the Fort McMurray area on Monday afternoon.
When you have a moment's notice to evacuate, what do you take?
Knowing what to have at home, or take with you for an evacuation, can be useful and even life-saving.
Local Spotlight
Adopted daughter in the Netherlands reunited with sister in Montreal and mother in Colombia, 40 years later
Two daughters and a mother were reunited online 40 years later thanks to a DNA kit and a Zoom connection despite living on three separate continents and speaking different languages.
'Reimagining Mother's Day': Toronto woman creates Motherless Day event after losing mom
Mother's Day can be a difficult occasion for those who have lost or are estranged from their mom.
Chris Hadfield inspires youth musical in Sudbury
YES Theatre Young Company opened its acclaimed kids’ show, One Small Step, at Sudbury Theatre Centre on Saturday.
Ottawa pizzeria places among top 20 deep-dish pizzas in the world at international competition
An Ottawa pizzeria is being recognized as one of the top 20 deep-dish pizzas in the world.
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Wilfrid Laurier football player drafted despite only playing 27 games in his entire life
A Listowel, Ont. man, drafted by the Hamilton Tigercats last week, is also getting looks from the NFL, despite only playing 27 games of football in his life.
Federal government bans watercraft from Manitoba lake popular with tourists
The threat of zebra mussels has prompted the federal government to temporarily ban watercraft from a Manitoba lake popular with tourists.
Toronto-area dessert shop featured by Keith Lee forced to move after zoning complaint
A small Ajax dessert shop that recently received a glowing review from celebrity food critic Keith Lee is being forced to move after a zoning complaint was made following the social media influencer’s visit last month.
'Oh Crap!' New exhibit at Canada Science and Technology Museum explores human waste
The Canada Science and Technology Museum is inviting visitors to explore their poop. A new exhibition opens at the Ottawa museum on Friday called, 'Oh Crap! Rethinking human waste.'