Home & Garden

Water Heater cancellation massive fee

  • Last Updated:
  • Mar 22nd, 2018 10:33 am
Tags:
None
Deal Addict
Apr 22, 2014
2922 posts
424 upvotes
Oshawa, ON
Simple arithmetic dictates you should pay the $450 asap and buy a brand new tank and remember to never rent again. And tell your friends.
Deal Addict
Nov 2, 2005
3079 posts
672 upvotes
Ottawa
jamieee wrote:
Jan 15th, 2016 11:51 am
i recently moved into a new build (8 months now) and am paying $43/month for my rental tank from reliance. biggest scam of life.
It's not a scam, it's the legitimate terms of a contract you entered into with them. A scam is when someone sells you something and either does not deliver what you agreed to or does not deliver at all.
Penalty Box
Dec 25, 2004
2275 posts
220 upvotes
DarExc wrote:
Jan 15th, 2016 12:00 pm
Hi Peano, Actually, it should apply thanks to National being taken over after.

"ii. Rental Agreements acquired by Reliance through portfolio acquisitions between January 1, 2007 and the Effective Date."

the Effective Date is November 3rd, 2014. Reliance took over National on November 24th, 2014 so it is not exempt.

"12. Other than relating to Exempt Agreements, where there is a conflict between the terms of this
Agreement and the terms of any Rental Agreement:
a. executed prior to the Effective Date; or
b. acquired by Reliance from another Person,
Reliance shall be required to follow the terms of this Agreement. For greater clarity, and by way of
example only, if a pre-existing or newly-acquired Rental Agreement (other than an Exempt
Agreement) permitted Reliance to charge Customers Exit Charges in excess of those set out in
paragraph 7(a) above, the Exit Charges in paragraph 7(a) would comprise the maximum amount
Reliance could charge a Customer."
Good to know. Thanks. But it also Exempts contracts with a term of a minimum of 84 months. National contracts are "lifetime". And it specifically names National contracts as exempt.
Penalty Box
Dec 25, 2004
2275 posts
220 upvotes
jamieee wrote:
Jan 15th, 2016 11:51 am
i recently moved into a new build (8 months now) and am paying $43/month for my rental tank from reliance. biggest scam of life.
It will cost you $200 to terminate and a $65 pick up charge. CANCEL!!!
Sr. Member
Mar 3, 2009
682 posts
176 upvotes
Ottawa, ON
dirtmover wrote:
Jan 15th, 2016 12:15 pm
It's not a scam, it's the legitimate terms of a contract you entered into with them. A scam is when someone sells you something and either does not deliver what you agreed to or does not deliver at all.
That may be a logical argument if the OP actually entered into the contract, but he did not.
Sr. Member
Mar 3, 2009
682 posts
176 upvotes
Ottawa, ON
peano wrote:
Jan 15th, 2016 12:29 pm
It will cost you $200 to terminate and a $65 pick up charge. CANCEL!!!
Ask them if they will waive the pick up charge if you drop off the hot water tank. With Direct Energy (aka. Enercare) I could drop it off for free, so that's what I did.
Sr. Member
Dec 19, 2010
667 posts
170 upvotes
Toronto, Ontario
dirtmover wrote:
Jan 15th, 2016 12:15 pm
It's not a scam, it's the legitimate terms of a contract you entered into with them. A scam is when someone sells you something and either does not deliver what you agreed to or does not deliver at all.
really, you want to argue/banter over semantics. ok would it be better for you if i used the word rip off, overcharge, crazy pricing. better?
Sr. Member
Dec 19, 2010
667 posts
170 upvotes
Toronto, Ontario
peano wrote:
Jan 15th, 2016 12:29 pm
It will cost you $200 to terminate and a $65 pick up charge. CANCEL!!!
is it really that easy? do you just call and tell them you want to cancel the contract and thats the fee they will charge? is there something to note/mention (contract, law, consumer protection act) of some sort? otherwise they may just give me me the run around.
Deal Addict
Nov 2, 2005
3079 posts
672 upvotes
Ottawa
jamieee wrote:
Jan 15th, 2016 12:57 pm
really, you want to argue/banter over semantics. ok would it be better for you if i used the word rip off, overcharge, crazy pricing. better?
Semantics? I'm pretty sure they have a contract signed by you that details the monthly payment, annual increases and buyout cost and a ton of other terms and conditions? Why is it a scam (rip off, overcharge, crazy pricing) now? You clearly didn't see things that way when you signed?
Penalty Box
Dec 25, 2004
2275 posts
220 upvotes
jamieee wrote:
Jan 15th, 2016 12:57 pm
is it really that easy? do you just call and tell them you want to cancel the contract and thats the fee they will charge? is there something to note/mention (contract, law, consumer protection act) of some sort? otherwise they may just give me me the run around.
All the info you need is a few posts above your original, but it is worth repeating:

CT-2012—002 COMPETITION TRIBUNAL

THE COMMISSIONER OF COMPETITION
Applicant
— and —
RELIANCE COMFORT LIMITED PARTNERSHIP
Respondent
CONSENT AGREEMENT

OBLIGATIONS RELATING TO RENTAL FEES AND EXIT CHARGES
7 iii a Rental Agreement termination charge not more than $200, where the
Customer’s water heater is less than one year old, and not more than $40 where
the Customer’s water heater is more than one year old but less than ten years
old;
v.
where the Customer or its Agent proceeds pursuant to subparagraph 5(c)(ii) of
this Agreement, a pick-up charge (not including draining or disconnection) not
more than $65 in respect of a natural gas water heater, and not more than $125
in respect of an electric water heater;

complete agreement here:

http://www.ct-tc.gc.ca/CMFiles/CT-2012- ... 4_3504.pdf


Some other salient points:

Reliance shall permit a Customer or its Agent to terminate a Rental Agreement and to return to Reliance the water heater that is the subject of such Rental Agreement as follows:
a. Reliance shall permit a Customer or its Agent to terminate a Rental Agreement at any time by submitting a Notification of Termination;
Sr. Member
Dec 19, 2010
667 posts
170 upvotes
Toronto, Ontario
dirtmover wrote:
Jan 15th, 2016 1:04 pm
Semantics? I'm pretty sure they have a contract signed by you that details the monthly payment, annual increases and buyout cost and a ton of other terms and conditions? Why is it a scam (rip off, overcharge, crazy pricing) now? You clearly didn't see things that way when you signed?
Really? Ok first off when the purchase agreement is signed, yes I understand the rental tank is apart of the agreement. However, that doesn't mean I agree with the rates they are charging, but am I not going to buy my house because of a water rental tank? No. It wasn't a make or break thing on the decision of the home. All i'm saying is the rates they charge vs purchasing your own does not make sense and is to me ridiculously overpriced. Not exactly sure what you got stuck up you behind, but sure. If you'd like to keep informing me of definitions of certain words and things i've signed, keep em coming.
[OP]
Newbie
Mar 2, 2011
58 posts
12 upvotes
Ottawa
peano wrote:
Jan 15th, 2016 12:19 pm
Good to know. Thanks. But it also Exempts contracts with a term of a minimum of 84 months. National contracts are "lifetime". And it specifically names National contracts as exempt.
Where does it specifically say National Contracts are exempt? At the time of the ruling it was still a different company. Does your National contract specify an exact term and define lifetime?
Penalty Box
Dec 25, 2004
2275 posts
220 upvotes
DarExc wrote:
Jan 15th, 2016 1:57 pm
Where does it specifically say National Contracts are exempt? At the time of the ruling it was still a different company. Does your National contract specify an exact term and define lifetime?
CT-2012—002 COMPETITION TRIBUNAL

"Exempt Agreements” means:
i. Rental Agreements entered into prior to the Effective Date that are subject to minimum 84 month terms;
ii. Rental Agreements acquired by Reliance through portfolio acquisitions between January 1, 2007 and the Effective Date; and
iii. National Rental Agreements"
Deal Addict
Sep 21, 2011
1147 posts
174 upvotes
DarExc wrote:
Jan 14th, 2016 9:12 pm
So I did some hunting and found out Reliance got in trouble and these fees shouldn't apply.

from CT-2012—002 COMPETITION TRIBUNAL

THE COMMISSIONER OF COMPETITION
Applicant
— and —
RELIANCE COMFORT LIMITED PARTNERSHIP
Respondent
CONSENT AGREEMENT

OBLIGATIONS RELATING TO RENTAL FEES AND EXIT CHARGES
7 iii a Rental Agreement termination charge not more than $200, where the
Customer’s water heater is less than one year old, and not more than $40 where
the Customer’s water heater is more than one year old but less than ten years
old;
v.
where the Customer or its Agent proceeds pursuant to subparagraph 5(c)(ii) of
this Agreement, a pick-up charge (not including draining or disconnection) not
more than $65 in respect of a natural gas water heater, and not more than $125
in respect of an electric water heater;

Hi there darexc I saw you post but what about my scenario my 40 gallon electric tank is 2005 so it's over 10 years old, you think that would be like 20.00 termination?
Penalty Box
Dec 25, 2004
2275 posts
220 upvotes
I am not DarExc obviously, but closing your account with Reliance (ie returning a water heater) is minimum $40 as I understand it. Pick up should be $125. Call them and ask to confirm.

If they give you crazy numbers say you have CT-2012—002 COMPETITION TRIBUNAL ruling right in front of you:

http://www.ct-tc.gc.ca/CMFiles/CT-2012- ... 4_3504.pdf

Top