Top 10 2005 consumer complaints and inquiries

March 1, 2006 --The ministry’s Consumer Services Bureau provides information and advice to consumers and mediates complaints between consumers and businesses. The ministry receives more than 75,000 complaints and inquiries by mail and telephone each year. Here are the top 10 complaints and inquiries received by the ministry in 2005.

Collection Agencies

The Collection Agencies Act governs collection agencies in Ontario.

A collection agency must inform the consumer if it plans to take legal action to collect a debt. Collection agencies are not allowed to make harassing phone calls and cannot continue to demand payment from a person who claims not to owe money, unless the agency first takes all reasonable steps to ensure the person, in fact, owes money.

Home Renovations

If such a contract is negotiated or concluded at the consumer’s home, the consumer can cancel the contract within 10 days of receiving a written copy of it. The final costs cannot be more than 10 per cent above the original written estimate set out in the agreement with the consumer.

Motor Vehicle Repairs

If there is a fee associated with providing an estimate, this must be disclosed in advance. Final charges for repair work cannot be more than 10 per cent over the original estimate.

Repair shops cannot charge for work without giving the consumer an estimate. The only exception is where an estimate is offered, the consumer declines the estimate and authorizes a maximum amount and the final cost does not exceed that amount.

Motor Vehicle Purchases

Enhanced consumer protection when buying motor vehicles will be covered in the Motor Vehicle Dealers Act, 2002, expected to come into force in 2006.

Home Furnishings

Under the Consumer Protection Act, if the promised date of delivery is missed by more than 30 days, consumers can cancel the agreement.

Personal Items

Consumers are protected against unfair practices, such as deceptive promotion and sales pitches.

If an unfair practice has occurred, consumers have a year to rescind the agreement.

Credit Reporting

It is illegal for a credit repairer to claim that they can bring any material improvement to a consumer’s credit file, before actually examining the consumer’s report and reasonably concluding that any material improvement can be made.

Consumers have 10 days to cancel agreements for credit repair.

Health and Fitness

A personal development services agreement is limited to a one-year term. The business must provide consumers the option to pay monthly installments.

A consumer can cancel the agreement within 10 days after the later of (a) receiving a written copy of the agreement and (b) the day all services are available.

Timeshare and Vacation Clubs

A consumer can cancel the agreement, without reason, within 10 days after receiving a written copy of the agreement. If the consumer cancels the agreement, the business must provide a full refund within 15 days.

Cell Phones

Contracts must disclose required information in a prominent, clear and comprehensible manner. If there is a dispute over unclear language in a consumer agreement provided by the business, the law requires that it be interpreted in favour of the consumer.

Payday Lending

The new act establishes clear disclosure requirements for payday lending as part of the rules on credit agreements. The ministry continues to work with the federal government on solutions to the high fees and interest rates charged by payday lenders. The new act requires clear disclosure of costs of credit.

Complaints and Advice

Consumers can call the Consumer Services Bureau for advice Monday to Friday from 8:30 a.m. to 5 p.m. at 416-326-8800 in Toronto or toll free at 1-800-889-9768. The TTY is 416-325-3408 or 1-800-268-7095.

Information and advice about consumer issues are available on the ministry’s website at www.mgs.gov.on.ca, where an online complaint form is available and may be submitted electronically.

For more information, contact:

Ministry of Government Services
250 Yonge St., 32 nd Floor
Toronto ON M5B 2N5
In Toronto: 416-326-8800
Toll-free: 1-800-889-9768
TTY: 416-325-3408 or 1-800-268-7095
Fax: 416-326-8665