COOLING OFF
New law helps protect consumers, but homeowners should know where their hot water comes from.
Spring is here and so are the door knockers. Their goal is to get inside your home and induce you to upgrade your heating equipment.
A new law, which took effect April 1, will help Ontario consumers fight back against misrepresentation.
You have 20 days to cancel a water heater rental contract signed at the door. And if you change your mind, you can have the equipment removed at no cost if it was installed during the cooling-off period.
“You should also know that when you buy a home, you may be taking on the responsibility for an existing water heater contract that comes with the home,” says a consumer alert by the Ontario consumer services ministry.
“Ask the homeowner, your real estate agent or your lawyer for more information before buying the home.”
While it’s smart to ask questions, you can still get into trouble if the previous homeowner replaced the water heater without your knowledge. Here is a cautionary tale from Feryal, who bought his house in May 2012:
After paying water heater rental fees to Direct Energy for three years, he recently called the company about a leak.
“As soon as the technician opened the boiler room door, he said this isn’t a Direct Energy tank. It’s from Reliance and it was changed in 2011,” he says.
Direct Energy wanted see paperwork confirming the tank had been returned. Reliance couldn’t find it. This meant the new homeowner had to pay a $400 buyout fee for equipment removed by the previous owner.
Feryal was an effective advocate, persuading Direct Energy to waive the $400 buyout fee and give him a $567 credit for three years of rental fees.
“After our investigation, we determined that he was not responsible for the failure to return our water heater,” said spokesman Jeff Lanthier. “If we were notified that our water heater had been removed and returned to us, he would not have been charged at any time.” Here is how to protect yourself: Inspect your hot water tank. It usually has a label that shows the rental supplier’s name.
Check your bills. Make sure your fees go to the rental supplier whose name matches the tank label.
Find out if your rental supplier bills directly or through Enbridge. If you are an Enbridge customer, you will see the monthly fees on your gas bills. Ellen Roseman writes about personal finance and consumer issues. You can reach her at eroseman@thestar.ca or ellenroseman.com