Canadian Home Improvement Credit Corporation to Refund C$113,000 Following Consumer Protection Investigation
The Canadian Home Improvement Credit Corporation (CHICC) has agreed to refund approximately C$113,000 to affected consumers in British Columbia following an investigation into its direct sales contracts and debt collection practices.
The agreement, announced by Consumer Protection BC (CPBC), requires the financing company to provide refunds within 90 days, cancel certain consumer contracts, remove associated liens or charges, revise its business practices, and reimburse the regulator for inspection costs.
The resolution follows an investigation into whether CHICC complied with provincial consumer protection requirements governing direct sales contracts.
Investigation Identified Contract Deficiencies
According to Consumer Protection BC, the investigation identified 53 consumer contracts that did not include the total contract price, a disclosure required under British Columbia’s consumer protection legislation.
CPBC also alleged that an unlicensed debt collection agent acting on CHICC’s behalf harassed consumers and collected or attempted to collect amounts exceeding what was owed under some contracts.
CPBC said nine consumers were contacted by a debt collector, while five consumers ultimately paid more than the amount they owed under the affected contracts.
The undertaking does not constitute a court ruling but reflects an agreement reached between the regulator and the company to resolve the matter.
Refunds and Contract Cancellations Required
Under the agreement, CHICC must provide refunds totaling approximately C$113,000 to eligible consumers within 90 days.
The company must also:
- Cancel certain consumer contracts.
- Remove any liens or charges registered under those agreements.
- Modify its business practices to improve compliance with consumer protection requirements.
- Pay more than C$21,000 to reimburse Consumer Protection BC for inspection costs.
Consumer Protection BC said the measures are intended to provide meaningful remedies for affected consumers while strengthening future compliance.
Consumers Encouraged to Review Contracts
The regulator is encouraging consumers who entered into contracts with CHICC through door-to-door sales to review their agreements carefully.
As per CPBC, consumers whose contracts do not disclose the total contract price may be eligible to have those agreements canceled under the terms of the undertaking.
The agency advised affected individuals to verify whether the required pricing information was included before signing the contract.
Consumer Protection Concerns
Consumer Protection BC said the investigation highlights the importance of clear pricing disclosures in financed direct sales transactions.
The regulator noted that consumers should be informed of the full cost of an agreement before entering into a contract and should be treated fairly throughout the debt collection process.
The agency also stated that financed door-to-door contracts can present risks when consumers do not receive complete information about the financial obligations associated with the transaction.
Legislative Changes Ahead
Consumer Protection BC also noted that upcoming changes to British Columbia’s consumer protection laws will prohibit at-the-door financing in the province.
The regulator encouraged consumers to report instances of door-to-door financing if they encounter such practices after the new rules take effect.
What Comes Next
CHICC must complete the required refunds and other corrective measures within the timelines established under the undertaking.
Meanwhile, Consumer Protection BC is encouraging consumers who entered financed door-to-door agreements with the company to review their contracts and determine whether they may qualify for refunds or contract cancellation under the undertaking.
