The Department of Public Services and Enterprise is responsible for consumer protection and states on its website that it handles complaints and enforces consumer protection laws. Through a Freedom of Information request — a process that allows the public, including journalists, to access government records — Marketplace found that there have been more than 400 incidents, investigations and complaints since January 2019 made to Consumer Protection Ontario, a program within the ministry, about Ontario Green Savings.

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In those complaints, homeowners have described feeling “lied to,” “cheated,” and “cheated.” And many shared detailed descriptions of how they were led to believe Ontario Green Savings salespeople were public servants offering savings and energy rebates that would show up on a utility bill. But the Ontario government offers no such rebates through private HVAC companies. Records obtained by Marketplace show that since 2019, homeowners have contacted the ministry to dispute more than $2.2 million in HVAC contracts with Ontario Green Savings. Buy investigated this scam earlier this yearfinding that instead of saving money, residents say they’re locked into contracts that can last ten years and cost thousands of dollars more than the rental equipment is actually worth. WATCHES | Hidden cameras capture deceptive tactics used to sell overpriced HVAC contracts:

Hidden cameras capture HVAC fraud in action

Exposing deceptive sales tactics used to lure people into unfair and overpriced HVAC contracts. And insiders reveal new ways to get you signed up for other home appliances, too. And it could get a lot worse for some.
When rental equipment is attached to a home, from a doorbell to a furnace, the related company can lien on that property’s title as a form of guarantee that the contract will be paid. And companies can put liens on consumers’ homes immediately, even without a payment violation. The Marketplace team has heard from dozens of customers of Ontario Green Savings and its financial arm, many of whom said they were shocked to find an allowance or Notice of Security Interest (NOSI) placed on their home title without their knowledge. in Ontario it is legal and can be done without the homeowner’s knowledge.

The Ontario government wasn’t there to help, homeowners say

Abel Cheung of Orleans, Ont., is out $11,000 all because he signed up for a water filter that was supposed to save him money. Cheung says he felt compelled to pay Ontario Green Savings more than $11,000 to remove the lien on his home’s title. After installing a water filter in his basement, the company placed a lien on his home the next day, which he only discovered when he tried to refinance his mortgage nearly a year later. “I thought, ‘Oh my God, how dare they put a bond on my house?’ Keira Major of Hamilton, Ont., found herself in a similar situation. She paid the same HVAC company nearly $9,000 to purchase a HEPA filter and remove her home’s lien. Major says she believed the company was connected to a government program. Both turned to the ministry for help, but said they got none. Cheung filed his complaint in 2020 and Major the following year. Cheung says the ministry did nothing, citing delays due to the COVID-19 pandemic. And Major received a letter saying her complaint would not be investigated and referred her to the non-profit organization Pro Bono Ontario for legal advice. “The department is there to make the government look good, that we’re protecting our consumers when in fact we’re not,” Major said.

The government imposes fees, but that doesn’t stop the company

In 2019, the ministry laid dozens of charges against Ontario Green Savings and its director for violations of the Consumer Protection Act, but customers say it continues with the same deceptive sales tactics. In an emailed statement, a lawyer representing Ontario Green Savings said “the company is currently investigating the allegations against it and will defend itself, where necessary, in court.” He also said the company has already “taken positive reform measures” by updating its policies and practices. And in an emailed statement, the Department for Public Service Delivery and Enterprise said it was “monitoring complaints and taking appropriate enforcement action under the Consumer Protection Act”. He also said that because the Ontario Green Savings case is before the courts, it would not be appropriate to comment further.

A possible fix

Jennifer Lillie, a civil litigation attorney with a focus on consumer law, says the government could do more to protect homeowners. “I think there’s a strong case that these NOSIs should be harder to register and much easier to remove. So these companies don’t have to go to court to register NOSIs, but consumers do have to go to court in order to remove them,” Lily said. Lillie currently represents five clients who are suing Ontario Green Savings in small claims court. Civil litigation attorney Jennifer Lillie says consumer protection laws are being ignored by some heating and cooling equipment rental companies. (Anu Singh/CBC) He says homeowners often have no idea there’s a lien on their property until they go to sell their home or refinance their mortgage. “At this point they can’t close the sale or the deal and they can be redeemed for ridiculous amounts of money,” Lilly said. One possible way to protect homeowners, Lillie says, is for the government to create a process where the land registry notifies people when a lien has been registered on their property.

How can you protect your home?

In Ontario, consumers have the right to cancel any contract signed at their home within a 10-day cooling-off period and up to one year thereafter if the business or seller made misleading statements about the contract. While door-to-door selling is illegal in Ontario, Lillie warns that some companies have found loopholes. He says Ontario Green Savings had some homeowners unknowingly sign a piece of paper saying they were invited to the home, which was a condition put in place by the ministry to protect consumers. Homeowners who want to check if there is a lien on their property can contact their local or provincial land registry. In Ontario, consumers can purchase what is called a Parcel Registry. There they will find liens, or sometimes it will say “NO SEC INTEREST”, with the “no” being short for “notice” and not an absence of security interest. Lillie says those who spot a windfall should seek legal advice, and for those who can’t afford a lawyer, Pro Bono Ontario is a good place to start.