An investigation in Toronto has revealed a concerning trend of companies misusing Notices of Security Interest (NOSIs) to take advantage of homeowners in Ontario. This practice, highlighted in a proposed class action lawsuit, involves salespeople offering to lease heating or cooling equipment to homeowners, only to later register a NOSI on the property without the homeowner’s knowledge. The NOSIs, often valued at thousands of dollars more than the equipment itself, act as collateral for the rented equipment and can complicate homeowners’ plans to sell their homes or manage estates.
Lawyer Mohsen Seddigh, representing customers in the proposed class action, estimates that the total value of NOSIs across all affected homeowners could amount to tens of millions of dollars. The ease with which NOSIs can be set up was demonstrated by W5 producers, who registered a NOSI for a $130 thermostat in a shockingly fast and simple process.
The regulation of NOSIs falls under the jurisdiction of the Government of Ontario, which has indicated a potential change to the system in light of these concerning practices. Despite denials from the companies involved, many homeowners find themselves unable to cancel NOSIs, leaving them with a costly hold on their property.
To learn more about this issue, tune in to W5’s documentary ‘Who’s At Your Door?’ airing Saturday at 7 p.m. on CTV.