Ontario man told to pay $1,000 to end water heater contract

An Ontario man was surprised by a $1,000 penalty when he decided to cancel his water heater lease.

"I'm shocked at the fine I have to pay, it's almost as much as it would cost to buy a new water heater," Etobicoke resident James Alves told CTV News Toronto.

Now living on a fixed income, Alves decided to check her bills and cancel her water heater lease, but she didn't know she would have to pay a penalty.

"I decided it was too expensive to rent a water heater every month, and after eight years, I decided I had paid enough for the rent," Alves said.

According to him, over the years, he has paid about $4,144, including taxes, to rent a water heater from Enercare.

When he called Enercare to cancel his lease, he was surprised to be told that he would have to pay a penalty of $1,082, including tax, to buy the water heater and cancel the contract.

Alves said: "For something I can buy now for $1,200, they charged me enough rent and now I have to pay this termination penalty." I think this is ridiculous."

When Alves sued Enercare, they reduced the purchase price by $250.

An Enercare spokesperson told Toronto's CTV News: "We do not routinely share details of customer accounts or transactions. But we can confirm that our lease includes an option to purchase the water heater at the end of the lease. In this case, and as mentioned by Mr. Alves, as a long-time valued customer, a goodwill credit has been applied to his account to reduce the purchase price. However, we always try to satisfy the customer and have contacted Mr. Alves."

Water heaters are generally reliable, require little maintenance and last more than 15 years. While most Canadian homeowners in many provinces buy their own water heaters, many people in Ontario still rent them.

"Many people who are in the rental market move into a new home and continue the lease as they pay their other monthly bills," says Bill Adams, head of Home Depot's water heater division. But we have a lot of options when it comes to water heaters."

"In the future, I will always have my own water heater and never rent again," Alves said.

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