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Water Heater cancellation massive fee

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  • Dec 7th, 2017 10:43 am
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Deal Addict
Sep 21, 2011
1042 posts
128 upvotes
peano wrote:
Jan 15th, 2016 5:40 pm
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
Hey peano thabks for the info, defiantly going to cancel their contract but what if I deliver the tank to Richmond Hill reliance branch could I save the pick up fee ?
Jr. Member
Apr 27, 2015
133 posts
86 upvotes
Toronto, ON
Thanks for all the info guys! If couldnt come at a better time since i just got a letter from Reliance stating an increase on Feb 1st of my monthly rental.

So that means you just call and you can cancel the contract for $200 and have them pick it up for $65?

Where do you guys buy your new water heaters than ie Lowes? How much does it cost for an install and for them to undrain the Reliance water tank. Thanks!
peano wrote:
Jan 15th, 2016 7:05 pm
More return info from their website:

http://www.reliancehomecomfort.com/Pages/returns.aspx
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Oct 18, 2003
1089 posts
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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?
Bullet iii under exception. I am stuck with NHS contract too, wish there was a way out

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
[OP]
Newbie
Mar 2, 2011
58 posts
11 upvotes
Ottawa
nkit88 wrote:
Jan 15th, 2016 8:20 pm
Thanks for all the info guys! If couldnt come at a better time since i just got a letter from Reliance stating an increase on Feb 1st of my monthly rental.

So that means you just call and you can cancel the contract for $200 and have them pick it up for $65?

Where do you guys buy your new water heaters than ie Lowes? How much does it cost for an install and for them to undrain the Reliance water tank. Thanks!
Call them up and ask, they'll tell you the costs. One can purchase them anywhere really. The models at Home Depot come with various parts and tank replacement warranties. The funny thing is, if you look up their authorized warranty service vendors, Reliance is first on the list. So by cancelling and buying your own you can still have Reliance service the tank under warranty and if they're busy just call one of the many other vendors.

Lowe's will offer you a 12 year warranty (after the manufacturer's 1 year warranty offering the same) including labour, for $89. Essentially, you get the same service as reliance offers for 4 months at that price but for 13 years.
Sr. Member
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Jul 11, 2011
858 posts
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Ontario
...I did the water heater switch last spring and I was able to negotiate a half price, pick-up fee from Reliance. I own a small hatchback and was not going throw the old tank in the back and drive it down the 401 to the drop off location in Cambridge.

YMMV, but for me, they bent on the mandatory $65 pick-up fee fairly fast...hebs
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Jul 11, 2011
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DarExc wrote:
Jan 16th, 2016 7:33 am
Lowe's will offer you a 12 year warranty (after the manufacturer's 1 year warranty offering the same) including labour, for $89. Essentially, you get the same service as reliance offers for 4 months at that price but for 13 years.
....when I purchased mine last spring I was told that the warranties don't 'overlap'.

I'm recalling this from a hazy memory, but the standard tank warranty was a full one-year manufacturer and then six year "parts" (I think).

By purchasing the 6 year extended warranty, you don't get six year manufacturer 'plus' six year Lowes warranty. All you get is a full six year parts/labor from Lowes.

I'm sure this topic has been covered somewhere already though...hebs
Deal Addict
Oct 29, 2010
4112 posts
557 upvotes
I hate those contracts just as anyone but hard to argue against them.
I mean, depending on the water heater it may cost $1,000-$3,000 and you don't know how long you're going to stay in that house. Would it be better if you paid 2k upfront, sold the house a year or two later and have the new owner get a brand new heater that you had to pay for it? The new place you will be moving to will have the same problem and you will need to buyout another water heater.
It's a vicious cycle because rentals are so popular in Ontario.

For me personally, I bought a house last year, it had a 20 year old water heater inside, I was 1000% sure it was owned cause none (both sides real estate agents and previous owners) said otherwise and the thing is so old.
Turns out that the first gas bill I get a rental charge of ~$40. I get really pissed and do some phone calls and turns out even though it was 20 years old, it was still a rental. "Luckily" it was so old that buyout was only $80 so I did it and now it's mine.
Getting a similar rental one is ~$60 per month now and buying one is roughly $2,500. It's a combo unit that also heats up the house.
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Mar 8, 2002
4214 posts
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Ottawa
Water heater rentals really prey upon the poor and are almost as bad as payday loans. "Sorry you can't afford a $1500 water heater, but we can rent one to you at $20 a month forever with punitive cancellation fees - and we'll make you wait three days for us to fix it if it breaks."
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Jan 2, 2012
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KINGSTON,ON
flafson wrote:
Jan 16th, 2016 8:22 am
I hate those contracts just as anyone but hard to argue against them.
I mean, depending on the water heater it may cost $1,000-$3,000 and you don't know how long you're going to stay in that house. Would it be better if you paid 2k upfront, sold the house a year or two later and have the new owner get a brand new heater that you had to pay for it? The new place you will be moving to will have the same problem and you will need to buyout another water heater.
It's not hard to argue against these rental contracts, it's just one more thing to be aware of when you are purchasing a home, like knowing the condition of the shingles or the windows. That doesn't mean we should all roll over and accept it. (Frankly, if you are selling your house "in a year or two", you should be renting, because the real estate broker fees and land transfer tax are going to be the real killer here, but I digress.)
flafson wrote:
Jan 16th, 2016 8:22 am
For me personally, I bought a house last year, it had a 20 year old water heater inside, I was 1000% sure it was owned cause none (both sides real estate agents and previous owners) said otherwise and the thing is so old.
Turns out that the first gas bill I get a rental charge of ~$40. I get really pissed and do some phone calls and turns out even though it was 20 years old, it was still a rental. "Luckily" it was so old that buyout was only $80 so I did it and now it's mine.
Getting a similar rental one is ~$60 per month now and buying one is roughly $2,500. It's a combo unit that also heats up the house.
You should have contacted your real estate lawyer. That's why you pay them. If it didn't stipulate in the Agreement of Purchase and Sale that the HWT was a rental, it was the seller's responsibility.
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Jan 2, 2012
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MacGyver wrote:
Jan 16th, 2016 11:27 am
Water heater rentals really prey upon the poor and are almost as bad as payday loans. "Sorry you can't afford a $1500 water heater, but we can rent one to you at $20 a month forever with punitive cancellation fees - and we'll make you wait three days for us to fix it if it breaks."

While I agree that they are almost as bad as payday loans, I think they prey on everyone, regardless of income level. For low income homeowners, yes, perhaps it's the cancellation fees, but for many others it's the inconvenience of jumping through hoops to get the whole thing dealt with.
I have a friend with an MBA, (and a notorious cheapskate), who bought a 5 year old home with a rental tank. When I initially saw the rental tank in his basement, I went on my soft sell tirade about HWT rental companies, and pointed out the long term cost of renting. He just looked at me sheepishly and said, "Ya, I thought about dealing with that..." He has two young kids and works crazy hours, and it just was too much work.
[OP]
Newbie
Mar 2, 2011
58 posts
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Ottawa
hebsie wrote:
Jan 16th, 2016 8:01 am
....when I purchased mine last spring I was told that the warranties don't 'overlap'.

I'm recalling this from a hazy memory, but the standard tank warranty was a full one-year manufacturer and then six year "parts" (I think).

By purchasing the 6 year extended warranty, you don't get six year manufacturer 'plus' six year Lowes warranty. All you get is a full six year parts/labor from Lowes.

I'm sure this topic has been covered somewhere already though...hebs
from their site, regardless, $89, even for 12 years is way better.
"Traditional water heaters are typically covered by a manufacturer’s warranty, which provides parts and labor protection for one year and parts-only protection after the first year. A Lowe’s Extended Protection Plan offers additional labor coverage not provided under the manufacturer's warranty. Plan starts after manufacturer’s labor warranty ends, if any. If the manufacturer does not offer a labor warranty, which is typical of tankless water heaters, Plan starts on date of purchase"
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Jul 11, 2011
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Ontario
DarExc wrote:
Jan 16th, 2016 1:27 pm
from their site, regardless, $89, even for 12 years is way better.
"Traditional water heaters are typically covered by a manufacturer’s warranty, which provides parts and labor protection for one year and parts-only protection after the first year. A Lowe’s Extended Protection Plan offers additional labor coverage not provided under the manufacturer's warranty. Plan starts after manufacturer’s labor warranty ends, if any. If the manufacturer does not offer a labor warranty, which is typical of tankless water heaters, Plan starts on date of purchase"
...so the six year extended plan gets you one-year manufacturer plus six more from Lowes, for a total of seven then??

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