Financeit and Your Ontario HVAC Contract
A consumer finance platform that holds and services a large volume of Ontario home equipment agreements originated by separate installer organisations.
Financeit is a consumer-finance platform that services a large number of Ontario HVAC and home equipment agreements. The underlying sales are made by separate installer organisations and the agreements are then financed or held by Financeit.
Under Ontario law, when an underlying agreement is challengeable because of how it was sold, the rights of the assignee are no greater than the rights of the original seller. A contract serviced by Financeit can still be addressed.
Our position is not that Financeit engaged in wrongdoing at the original sale. Our position is that the underlying agreement may have been unenforceable from the start under the 2018 amendments.
Also known as: FinanceIt, Financeit Canada, Financeit Canada Inc..
What These Contracts Typically Look Like
- Long terms — typically 10 years or more
- Payments collected or serviced by Financeit
- Total obligations far in excess of the equipment's installed value
- Property registration on title placed at the time of the original sale
- Buyout amounts that remain high for most of the term
What We Hear from Homeowners
- Surprise that the contract is held or serviced by Financeit rather than the installer
- Difficulty obtaining clear cancellation or buyout numbers
- Buyout figures disproportionate to the equipment's value
- Lien on title discovered at refinance or sale
Which 2018 Amendments Are Likely to Apply
The 2018 amendments to Ontario's Consumer Protection Act identify several practices that can render an HVAC agreement unenforceable. Where the underlying agreement (now held by Financeit) was originated through any of these practices, the same conclusions apply:
Unconscionable Pricing
Pricing set in the original agreement remains subject to the 2018 amendments after assignment.
Unsolicited Contact
If the original sale was at the door, the agreement may be unenforceable, and that conclusion travels with the contract.
Misrepresented Energy Savings
Misrepresentations made at the original sale remain part of the contract record.
Only one of these grounds needs to apply for the agreement to be challenged successfully.
What to Do If Financeit Is Collecting on Your Agreement
- 1Locate the original installer agreement, not just Financeit statements.
- 2Photograph the data plates on the installed equipment.
- 3Check your title for any registration.
- 4Let us address Financeit and the original installer on your behalf.
- 5Book a free, confidential review.
Is the Underlying Agreement Behind Your Financeit Statements Enforceable?
If Financeit is servicing your HVAC contract, the underlying agreement may still be challengeable.