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
Bathroom break nearly derails $22 million project at city council meeting
A brief break during Wednesday's city council meeting in Saskatoon nearly cost the city dearly.
Do this once a month and extend your life by up to 10 years. No gym required
Research shows that art experiences, whether as a maker or a beholder, transform our biology by rewiring our brains and triggering the release of neurochemicals, hormones and endorphins.
Mackenzie Hughes 'gutted' after falling short at RBC Canadian Open
Mackenzie Hughes had the dream scenario of winning the RBC Canadian Open in his hometown within reach but then it all slipped away.
Motorcycle doing wheelies, weaving in, out of traffic caught on Highway 417
A motorcycle driver is facing charges after being caught on Highway 417 doing wheelies and weaving in and out of traffic, the Ontario Provincial Police (OPP) says.
Oilers advance to Stanley Cup final by beating Stars in Game 6
The Edmonton Oilers rode their special teams and goaltender to victory on Sunday, beating the Dallas Stars 2-1 to win the National Hockey League's Western Conference and earn a berth in the Stanley Cup final against the Florida Panthers.
'Rotten rock': Climate change altering the face of Canadian mountaineering
The Abbot Pass hut stood for decades in a rugged saddle between two iconic peaks, overlooking the limpid turquoise of Banff National Park's Lake Louise — a destination for alpinists from around the world until the ground melted beneath it and forced its closure.
North Korea says it will stop sending trash balloons as South Korea vows strong retaliation
South Korea said Sunday it’ll soon take retaliatory steps against North Korea over its launch of trash-carrying balloons across the border and other provocations.
'The legacy I want to leave:' Mother with Stage 4 cancer advocates for survivors
People around the world are observing National Cancer Survivor Day, an annual celebration held to honour patients who have been through the often difficult and traumatic experience of living with cancer.
Driver missing after vehicle plunges into the Riviere-des-Prairies between Montreal and Laval
Emergency response crews are on the scene Sunday morning after a vehicle plunged into the Riviere des Prairies in Montreal.
Local Spotlight
107-year-old luxury rail car ready for visitors after major restoration
Car 14 is a luxury passenger car that once made regular runs from London to Port Stanley starting in 1917.
U of W Two-Spirit Archives aim to preserve history of a community 'erased' from heritage
A hefty donation by a renowned local activist to the University of Winnipeg has created what is believed to be the most comprehensive two-spirit archives in all of Canada.
'It really has brought a lot of joy': Family of baby foxes moves into Manitoba woman's yard
Leanne Van Bergen discovered a skulk of 10 baby foxes, and two mothers, had made themselves at home on her property in Beausejour.
81-year-old Waterloo, Ont. woman with paralysis, amputated leg lives out dream of riding horse again
An 81-year-old Waterloo, Ont. woman thought she’d never ride a horse again after a brain bleed led to severe physical complications.
Video shows driver in Toronto frantically getting out of car being pushed by truck
A CP24 camera caught the moment a driver frantically got out of her car as it was being dragged by a truck on Avenue Road Wednesday afternoon.
Prince Edward Island celebrates first-ever International Day of Potato
Prince Edward Island is celebrating its first-ever International Day of Potato on Thursday.
'Bigger and better and stronger than ever': Covered Bridge Chips president sets sights for late 2025 rebuild after fire
The president of Covered Bridge Chips in New Brunswick is hoping to have his factory rebuilt for late 2025 following a devastating fire last year.
Winnipeg high school helps lead ducks that nested in courtyard to water
Students and staff at Winnipeg’s Westwood Collegiate had a unique problem to solve this month; how do you lead ducks to water from the school’s courtyard when 12 of them can’t fly yet?
Questions and concerns remain after space junk lands in Saskatchewan
Debby Lorinczy remembers her father as an amazing person and as a man who also made an amazing discovery.