Parenting & Family

Warning re. certain RESP companies

  • Last Updated:
  • Aug 6th, 2018 10:56 am
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Apr 16, 2002
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Warning re. certain RESP companies

An earlier version of this article incorrectly described a behavior of crows exposed to crow corpses. Live crows only touch, attack and attempt intercourse with crow corpses, they do not scavenge them. (Actual NYT correction)
14 replies
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Jun 26, 2005
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So sad. Yup another reason why it's better to do it yourself. Just buy quality stocks . Set a stop below it and see how it goes.
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Jul 5, 2004
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I don't understand why people keep using these group RESP's. There's so much information out there, all it takes is a 2 second Google search. I expect parents of young kids to be well versed on how to use the internet. I can forgive the older generation for not doing research, but there's no excuse for those in their 20's and 30's.
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Sr. Member
May 12, 2014
681 posts
290 upvotes
Markham, ON
Shaner wrote:
Aug 2nd, 2018 7:45 am
I don't understand why people keep using these group RESP's. There's so much information out there, all it takes is a 2 second Google search. I expect parents of young kids to be well versed on how to use the internet. I can forgive the older generation for not doing research, but there's no excuse for those in their 20's and 30's.
Good thing I'm in my 40's and can be forgiven.

I've found some people assume it's all difficult and don't bother even looking into how stocks and finance works. It's not age related, however once someone is shown how to buy and sell in a brokerage account, they're fine after. Money seems to be a taboo topic for a lot of people and adds to the ignorance.
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Jul 5, 2004
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Bobberts wrote:
Aug 2nd, 2018 8:12 am
Good thing I'm in my 40's and can be forgiven.

I've found some people assume it's all difficult and don't bother even looking into how stocks and finance works. It's not age related, however once someone is shown how to buy and sell in a brokerage account, they're fine after. Money seems to be a taboo topic for a lot of people and adds to the ignorance.
You don't even need to know how to buy and sell stocks. Just use a big bank instead of these group RESP's. At least with a big bank you aren't risking your money if you stop making contributions or if your kid doesn't go to school. That was my point. It takes 2 seconds to Google these group RESP companies and there's no shortage of bad press about them.
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Deal Expert
Aug 22, 2011
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Ottawa
Bobberts wrote:
Aug 2nd, 2018 8:12 am
Good thing I'm in my 40's and can be forgiven.

I've found some people assume it's all difficult and don't bother even looking into how stocks and finance works. It's not age related, however once someone is shown how to buy and sell in a brokerage account, they're fine after. Money seems to be a taboo topic for a lot of people and adds to the ignorance.
Or just play it safe in a GIC!
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Jan 2, 2015
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In all fairness, these companies do prey on new and sleep deprived parents. I remember that there was ‘budgeting for babies class’ we signed u p for. It was through some very reputable place we received the referral, like Alberta health or something. We went, they asked us for or contact information, and they actually provided decent, but very basic information on what things are worth spending on and not, ect. Then they touch on RESPs and on the grants, how to get a SIN. At the very end, the person doing the presentation gave me his card, yep, CSG heritage group. We didn’t give our name but so many did. We put our name for the free welcome wagon for babies.

Somehow, in my first sleep deprived week, I received many phone calls from these groups. I still have no idea, maybe the welcome wagon. When I told them I had it under control, they used fear tactics of me mismanaging my child’s funds. They kept calling making me sleep deprived. It was only when I threaten t expose them to everyone around me and social media that they stopped.

They are pretty relentless.
On a 'smart' device that isn't always so smart. So please forgive the autocorrects and typos. If it brothers you, then don't read my posts, but don't waste my time correcting me. If you can get past the typos, then my posts generally have some value.
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Mar 18, 2005
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Shaner wrote:
Aug 2nd, 2018 7:45 am
I don't understand why people keep using these group RESP's. There's so much information out there, all it takes is a 2 second Google search. I expect parents of young kids to be well versed on how to use the internet. I can forgive the older generation for not doing research, but there's no excuse for those in their 20's and 30's.
I have the same view. It is however shocking how many people don't do the research now when its so easy. I started looking into RESP's about 3.5 years ago and it took all of 20 seconds to know using one of these group services was a massive ripoff. I'm glad the Star is going after them though, I'd love for some regulations to come down on them. They are clearly preying on the uniformed to take as much money as they can.
Sr. Member
Jan 16, 2007
850 posts
201 upvotes
Toronto
I've dropped my RESP money into TD E-series MFs since day one, so I have no idea what these are and why they are scams. Why do people buy these and what's the conditions for losing your hard earned $$$. What's the payoff if you don't lose everything?
Thx
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Jan 15, 2013
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RESP was a no brainer. Government of Canada contributes 20% on the first $2,500 in annual contributions, so why not? Just go with a reputable bank or financial institution. I ended up with more than enough to finance my kids higher education. My account was completely drawn down with absolutely no issues.
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Mar 10, 2010
1004 posts
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Macx2mommy wrote:
Aug 2nd, 2018 9:43 am
In all fairness, these companies do prey on new and sleep deprived parents. I remember that there was ‘budgeting for babies class’ we signed u p for. It was through some very reputable place we received the referral, like Alberta health or something. We went, they asked us for or contact information, and they actually provided decent, but very basic information on what things are worth spending on and not, ect. Then they touch on RESPs and on the grants, how to get a SIN. At the very end, the person doing the presentation gave me his card, yep, CSG heritage group. We didn’t give our name but so many did. We put our name for the free welcome wagon for babies.

Somehow, in my first sleep deprived week, I received many phone calls from these groups. I still have no idea, maybe the welcome wagon. When I told them I had it under control, they used fear tactics of me mismanaging my child’s funds. They kept calling making me sleep deprived. It was only when I threaten t expose them to everyone around me and social media that they stopped.

They are pretty relentless.
This is exactly the underhanded BS they play. We're still not sure if somebody at the hospital sold our contact info but these vultures showed up on our doorstep about 4 days after leaving the hospital right when sleep deprivation and post-partum were really affecting our family. I had already done my research and so knew all about them and the second they mentioned who they worked for I started tearing into them. Even with all that, they still tried to pull the "you're putting your baby's future in jeopardy" crap as I chased them off my door step. I saw red, but luckily only slammed my door after one or two more choice words...
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Jan 2, 2015
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Clacker wrote:
Aug 2nd, 2018 8:14 pm
This is exactly the underhanded BS they play. We're still not sure if somebody at the hospital sold our contact info but these vultures showed up on our doorstep about 4 days after leaving the hospital right when sleep deprivation and post-partum were really affecting our family. I had already done my research and so knew all about them and the second they mentioned who they worked for I started tearing into them. Even with all that, they still tried to pull the "you're putting your baby's future in jeopardy" crap as I chased them off my door step. I saw red, but luckily only slammed my door after one or two more choice words...
I always wondered how they got our number. Ironically they called my house number not the actual cell number which I use, so I still can’t figure it out. I wonder if it was I. One of those public baby classes I signed up for. It was within a week or two when the phone calls started. However, when my second was born no phone calls.
On a 'smart' device that isn't always so smart. So please forgive the autocorrects and typos. If it brothers you, then don't read my posts, but don't waste my time correcting me. If you can get past the typos, then my posts generally have some value.
Jr. Member
Oct 17, 2013
127 posts
65 upvotes
Ontario
I learned first hand how sneaky these companies are and I will never blame the victim because of it. CST went directly to my mother when I gave birth to my son, and convinced her that she needs to open an RESP for her grandson. In my sleep deprived state, and trusting my own mother when she said she was opening up an RESP for my newborn son, I passed along his SIN. That's all it took. It wasn't until a year or so later that we realized what had happened and because my mother was the owner of the RESP, I had no access to it at all. It's all sorted out now, with money lost, but I absolutely despise these companies!
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Mar 10, 2005
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You have reached your limit of articles.

any way to get at this article? or a different news source?

Used Incognito mode
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"Talent gets you in the door. Character keeps you in the room."
Member
Jun 10, 2013
396 posts
136 upvotes
Can someone just sticky these warnings about Heritage Universitas CST etc? People still get caught up in them...somehow...

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