I never thought I would be using my semi-detached house in Toronto for a W5 survey. A story close to home.
But it turns out it’s 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.
The so-called “Security Interest Notice” or “NOSI”
A salesperson knocks on your door and offers to lease your home’s heating and cooling equipment for a monthly fee. Over the life of the contract, that fee can be thousands of dollars more than the equipment is worth.
That in itself may be a bad deal for you. But several customers we spoke to for this article said they didn’t expect to pay even more.
The company will take an unlimited amount of NOSI on your home as collateral for the rental equipment. And they don’t have to tell you.
Some of the NOSIs reviewed by W5 appear to be worth thousands of dollars more than the equipment itself.
Some of the customers we spoke to told NOSI that their plans to sell their home if necessary, while they were trying to move elderly parents or dispose of the assets of a deceased loved one, were Some said they were driven crazy by it.
And they said a lot of people were pressured to pay if they wanted to get out and sell. Some people already have it.
Mohsen Sedi, an attorney representing clients in the proposed class action, said NOSI could be worth up to tens of millions of dollars for all proposed class members.
Mohsen Sedi is the attorney representing clients in the proposed class action lawsuit (CTV W5)
What we wanted to know is how easy it is to set up. And are there any rules?
Needing a device to install in his home, W5 producer Joseph Loiero purchased a thermostat for $130.
He attached it to the wall with double-sided tape. In fact, there is no need to connect anything to register his NOSI, such as a lien.
W5 producer Joseph Loiello bought a thermostat for $130 and attached it to the wall with double-sided tape (CTV W5)
I then took a short trip to Cedi’s office where he walked me through the process of registering NOSI on my property as collateral for the thermostat. It was surprisingly quick and easy.
I offered 10 times the value of the thermostat. There was nothing stopping us. Cedi said she could have asked for more.
And they could have proceeded with the registration by paying a small fee. In other words, if he wanted to sell his house, he would have to pay producer Joe a huge amount without permission. (I also unsubscribed from NOSI – sorry Joe.)
Registering the thermostat’s NOSI for an amount 10 times the value of the thermostat was “surprisingly easy.” (CTV W5)
The rules governing this process are set by the Ontario government, which has said it is considering changes to the system.
And the companies involved denied exploiting anyone.
Unfortunately, many of the people we interviewed in our study did not have the option to cancel NOSI like we did. And they’re stuck with expensive hold negotiations on real estate that’s worth far more than the value of the equipment they rented.
Watch W5’s documentary “Who’s At Your Door?”Airs Saturdays at 7 p.m. on CTV.
