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WARNING! This information may be very upsetting to home owners! Rip offs disguised as Enbridge benefits!
I recently got a flyer in my Enbridge gas bill all about the Direct Energy Maintenance Plans. First let me clarify that Direct Energy is NOT Enbridge, they just pay to put their flyers in with your gas bill each month.
At first glance at the flyer I thought, wow, a home protection plan so I dont have to worry about any future repair expenses It sounded too good to be true and guess what? You wont believe the truth!!! After an hour of research online I finally found the disclaimers hidden in the terms and conditions that go with Direct Energy Maintenance Plan and read the fine print.
Please note the disclaimers are NOT written anywhere on the flyers so if you dont go to their website to download the 11 pages of information you will never know the truth about their Maintenance Plan. PLUS: Direct Energy does not tell you where the disclaimers are located so if you arent computer savvy, odds are you will never find them. The disclaimers are buried in their terms and conditions.
Anytime you see a star or cross or some other small mark at the end of a word there IS a disclaimer somewhere that tells you the complete story.
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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Here it is line per line quoted right from the Direct Energy Maintenance Plans pdf file from their website. I have highlighted their text in Red so you will know exactly what words came from their program. Direct Energy offers you:
INCLUDES: Electrical Coverage No charge for parts and labour covered by the plan*
(See details below there are MANY EXCEPTIONS) (YOU PAY for every service call on this plan)
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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Furnace Maintenance Plan includes ONE cleaning and safety inspection per year at an additional cost of $9.99 per month. This is a ONE time maintenance that cost you an additional cost of $9.99 per month and if you dont book it you loose it it will not be carried into the next year if you fail to schedule Add $119.88 plus tax EVERY year to your plan (this price WILL go up). Boiler Maintenance Plan - includes ONE cleaning and safety inspection per year at an additional cost of $12.99 per month. This is a ONE time maintenance that cost you an additional cost of $12.99 per month and if you dont book it you loose it it will not be carried into the next year if you fail to schedule Add $155.88 plus tax EVERY year to your plan (this price will go up). Fireplace Maintenance Plan includes ONE safety inspection & cleaning of burner per year for ONE fireplace at an additional cost of $9.99 per month PER fireplace. This is a ONE time maintenance that cost you an additional cost of $9.99 per month for EACH fireplace in your home and excludes cleaning chimney or care for the chimney or liner. Add $119.88 plus tax EVERY year to your plan for EACH Fireplace in your home (this price will go up). Add $239.76 plus tax if you have (2) two fireplaces in your home Add $359.64 plus tax if you have (3) three fireplaces in your home
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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Its a bit pricy when you add them all together but does it really give you stress free security? Not hardly!
Lets look at their terms and conditions all 10 pages of it in very tiny print to find out the real story Plan coverage applies only to single family residence. So far so good, but if you use your home for business your equipment may not qualify for the coverage.
It says they will diagnose and repair equipment in accordance with the terms and conditions as long as the equipment is: Properly installed and in proper working order on the Effective Date. This means that if your equipment was improperly installed or it isnt working properly on the effective date it WONT be covered YOU PAY all costs associated with this service call and repairs.
If a payment is overdue by more than thirty (30) days, we may terminate your plan without refund to you of any amounts you have already paid Dont be late with ONE payment or YOU LOOSE your plan and YOU PAY the full cost of the annual plan and you get no service!!
A service charge of $45 plus GST applies for EACH service call made under the plan.
YOU PAY$45 plus GST every time you use your protection plan!
Service charges will apply separately for service calls made under each type of plan in this package
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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So YOU PAY $45 plus GST for each and every category problem you have EVERY time you use your protection plan! Call for 2 problems and you pay $90 plus GST!
If you cancel prior to the Anniversary Date of your plan or if we cancel your plan because a payment is overdue by more than thirty (30) days, any payments owing on the annual premium becomes due What this means if you cancel OR if you are late paying your bill, YOU OWE the full amount for the entire year! Regardless of how much time you have remaining on your Annual Plan.
Under their: Parts and Removal Warranty (all plans except Electrical Protection Plan and Appliance Protection Plan). All parts we remove from your home in connection with the installation of a replacement part becomes OUR property, and you assign to us any assignable warranties available from any manufacturer or supplier of such removed parts So they get to make the warranty claims on YOUR parts and they get to pocket any refunds they get from those parts.
Under Warranty and Liability they write We are NOT liable for losses or damages resulting from misdiagnosis or delays in completing diagnosis or repairs. If we fail to correct a repair problem covered by your plan or if a replacement part fails, our sole liability will be to correct the problem and, if necessary, to provide an additional replacement part. What they are saying is: If their diagnosis causes problems that damage your property, YOU PAY for all damages. If you have to take additional time off work to be home so they can come back YOU PAY for all lost wages. If it takes them weeks or months to finally resolve the problem, YOU PAY for whatever it costs to temporarily find solutions to whatever they are fixing. (i.e.: such as temporary heaters plus the increased cost of utilities during their use.)
OK take a deep breath because now we get to the really upsetting news:
Under Heating Protection Plan Equipment Coverage: The following are NOT eligible for coverage: heat pumps, equipment serving more than three dwelling units, equipment using conversion burners (boilers), the conversion burner itself and ductless, wall unit, heat pump and high velocity units. For eligible Heating Units the following is a list of parts not covered by the Plan: Heat exchanger, heating coil (for air handlers), heating sections (for boilers), firebox/combustion chamber, furnace filters, low and high water cut-off valves, external metal or plastic venting and all associated parts, external drain tubing and all associated parts, external line/low voltage wiring, condensate pumps, back check valves, batteries for programmable thermostats and boiler feed valves. Ancillary equipment such as air conditioners, humidifiers and air cleaners, parts added on to your heating unit to accommodate such equipment, or repairs to your
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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heating unit made necessary as a result of faulty ancillary equipment are excluded from coverage.
Under Cooling Protection Plan Coverage: The following are NOT eligible for coverage: Natural gas powered, ductless, wall unit, heat pump, water cooled units, high velocity air conditioning units and any air conditioning unit that is not easily accessible by our Authorized Repair Technicians including, but not limited to, air conditioning units that are located in crawl space or attic, or require the use of a ladder to gain access. Ancillary equipment such as furnaces, humidifiers and air cleaners, or repairs to the cooling unit made necessary as a result of faulty ancillary equipment is excluded from coverage. Cost of refrigerant recovery, vacuuming and refill are excluded from coverage. We are not responsible for insufficient air distribution due to existing ductwork design or clogged ductwork. Additional cleaning that is required due to insufficient maintenance prior to joining the plan is excluded from coverage and will be charged to you at our standard labour rate plus GST at the time of repair.
Under Plumbing Protection Plan Coverage: Your plumbing and drain system must be in accordance with your local Plumbing Code in order to be eligible for coverage. (NOTE: The code changes each year so odds are something wont be up to code) Plan coverage does NOT cover permanent repairs. If permanent drain repairs are necessary we will provide a written estimate. No further work will be performed on the drain until proper repairs have been made in respect to the problem originally diagnosed (YOU PAY or YOU FIX or plan service stops & you pay for plan in full anyway) Plan does NOT cover the following items: Faucet repair including but not limited to the repair or replacement of washers and/or cartridges in taps; Faucet replacement; Annual or routine plumbing inspection or cleaning of drains or catch basins; Changes to or problems with municipal water services; Repair or replacement of fixtures or equipment, water heaters, water softeners, water filtration systems, septic systems, sink basins, toilet seats, toilet tanks or bowls, moving parts within a toilet tank, bathtubs, showers, bidets, boilers, boiler piping and valves, radiators, radiator piping and valves, humidifiers, hot tubs, swimming pools, out-building supplies, decorative garden features, rainwater downspouts or eaves troughs, weeping tiles, backflow preventor, radiant in floor heating and saniflow electrical units for toilets and repairs made necessary as a result of faulty fixtures or equipment; Repair or replacement of sump pumps; Repairs of below grade drains beyond a one time auger and camera scope of each below grade drain; Repair or replacement of motors, heaters, jets or related piping
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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provided to bathtubs, hot tubs, or swimming pools; Appliance piping/drains, heating equipment piping/drains, or septic systems or their outflow pipes; Pipe replacement required where pipe design/integrity has resulted in poor pressure (e.g., from the calcification of galvanized or lead piping or integrity problems related to hard water); Drain piping repairs caused by improper installation or settling; Replacement of galvanized, lead, cast iron or non-pex plastic piping; and Mobile homes. (Note: bolded items are the most common plumbing problems in homes with the addition of leaks and they are NOT covered in this plan) Under Electrical Protection Plan Coverage: Exclusions: Fixtures, ceiling fans, doorbells, alarms, remote controls, intercoms, knobs, buttons, caps, hinges, handles, central vacuum systems, aluminum wiring, knob and tube wiring, inadequate wiring capacity, circuit overloading, power failure, power surge, direct current (DC) wiring or components, electrical appliances and garage door openers. Decorative or specialty switches, outlets, and receptacles are not covered by the Plan and will be replaced with standard white or beige switches, outlets or receptacles. We are not responsible for upgrades or for the cost of construction, carpentry, or other modifications made necessary by existing equipment or installing different equipment. Under Appliance Protection Plan Coverage: Clothes dryer excludes: Clogged duct or venting, roller or leveling feet, glass displays, light bulbs, grates, caps, fabric softener/bleach dispenser, venting, lint screens, and damage to clothing. Clothes Washer excludes: Clogged drains or lines, external hoses, roller and leveling feet, glass displays, light bulbs, grates, caps, rinse aids, fabric softener dispenser, plastic mini-tubs, soap dispensers, filter screens, and damage to clothing. Dishwasher excludes: Clogged drains or lines, roller or leveling feet, glass displays, light bulbs, grates, caps, rinse aids, racks and baskets. Kitchen Refrigerator/Freezer excludes: Clogged drains or lines, condensation pans, liner cracks not deemed as manufacturers defects by one of our Authorized Repair Technicians, roller and leveling feet, glass displays, light bulbs, grates, caps, racks, shelves, interior thermal shells, stand-alone freezers, ice cube makers and beverage dispensers which are not factory installed and/or an integral part of the appliance. Range/Oven/Cook top (gas or electric) excludes: Clocks or LED displays (unless they affect the function of the oven) microwave ovens (unless it is an integral part of the oven), meat probe assemblies, rotisseries, racks, light bulbs, shelves, roller or leveling feet, grates, burner bowls, glass displays, glass or ceramic tops (unless deemed to be a thermal crack by our Authorized Repair Technician) and trays; sensi-heat burners will only be replaced with standard burners. Replacement options: In the event that a replacement part is not available during the coverage period or our Authorized Repair Technician determines that it is not commercially reasonable to repair the appliance, we may, at our option, choose to provide you a residual allowance to aid in the purchase of a new appliance. See Product Residual Amount chart for limits in amount allowance.
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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If the specific exclusions werent enough with each plan they also include a
GENERAL EXCLUSIONS APPLICABLE TO ALL PLANS:
Warning: This is another huge list of all the things they DONT cover in their plan:
Your Plan does not provide any coverage other than as specified above. In th3e event there is a question regarding whether a specific service or repair is covered under the Plan, following a thorough diagnosis, our onsite Authorized Repair Technician will make the final decision. (Did you notice that they dont have their technicians do the work, they subcontract the work out to an authorized repair technician from a different company? In addition you pay $45 for that Technician to tell you whether or not the problem is covered (which it usually isnt). No service or repairs under this Plan will be providedin the event that our Authorized Repair Technician refuses to enter a residence due to the presence of animals, insects, or unsafe conditions including Equipment that is not easily accessible by our Authorized Repair Technician (e.g. Equipment located in crawl spaces or attics or requires the use of a ladder to gain access) Do you have a dog or cat guess what, they can use your pet as an excuse not to honor the Plan! Did you remember to shovel the snow from your driveway? If not they can use that as an excuse not to honor the Plan. How about access to the equipment (most is located in the basement in a small space) they may deny you service if you dont have an easy path so they can access the equipment. They have made sure that the Repair technician has the final say which you pay $45 just to get that answer. Your Plan specifically does NOT cover any costs, including diagnosis and service, repair, parts replacement or adjustment in the following circumstances; Repairs to equipment used for commercial applications; Repairs needed because of design faults or faults which existed before your Plan became effective; (how in the heck do you prove this?) Repairs needed as a result of abuse, tampering, alterations or repairs by persons other than us; (so if they wont fix one part, and you hire a professional company to fix that one part, they can deny service to the whole thing?? Wheres the logic in this?) Repairs needed as a result of accidental or deliberate damage, loss, theft, freezing weather conditions, subsidence, structural repairs, fire, lightning, explosions, earthquakes, flood, storm, acts of war or other insurable risks; (so if your boiler breaks down and your pipes freeze and burst, they will not only NOT fix your furnace if it is the pump, but they also wont repair the frozen pipes, or replace the electrical panel that shorted out from the waternice!) The thermostat is not at the proper setting; (note: they dont bother telling you what the proper setting is) The pilot light has been extinguished by someone other than one of our Authorized Repair Technicians; (so if you get a gas leak in your home and Enbridge turns your gas off and turns off your pilot light, they
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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just negated your Plan with Direct energy because Enbridge is NOT their Authorized Repair Technician). The household electric fuse or breaker required for the Heating Unit or Cooling Unit is blown; (so you pay for the repairs, the Plan doesnt pay) The Heating Unit or Cooling Unit has been turned off; (ok so your unit starts making strange noises or starts producing smoke so you turn it off and call a repair man but since YOU turned it off the repairs are NOT covered by the plan) The problem relates to improper sizing or application of the equipment; (the Ontario Building Codes change annually and what was an appropriate size even one year ago may not be the legal requirement now, odds are you have something in your home that met code when installed but no longer meets code now so they are excluded from your Plan, YOU pay again!) Renovation related work; (better not add that additional bathroom in the basement, or any other renovation to your home even if it is performed by a licensed contractor meeting all Ontario Building Codes because you just lost your Plan you still have to pay for all your repairs!) The costs of redecoration and restoration costs required as a result of any work performed in connection with the Plan, including, but not limited to, wall coverings, drywall, plaster, wallpaper, paint, floor coverings, tile, cabinetry, counter tops, landscaping, or repair of any structural or cosmetic defects. If it is necessary for us to dig on your property in connection with work performed in connection with the Plan, we will fill any holes and leave the ground level or mounded, but we will not restore the original surface or construction; (thats quite the list!) Loss or damage to property caused by the heating, cooling, appliance, electrical or plumbing or drains system breaking down (e.g. damage to furniture caused by water leaks). (OK this is standard policy for most contractors, but what happens when their Authorized Repair Technician causes the problem that led to the property damage, after all they dont work for Direct Energy or Enbridge they are third party contractors insured by????) Repairs needed if we have previously advised you that permanent repairs are needed to ensure your system is in good working order; (for example if they tell you that you need to replace your furnace because it may not last another season, they wont do any repairs on that furnace on this Plan you must pay for any and all repairs required) Repairs needed as a result of lack of reasonable maintenance (e.g.; pipe bursts due to cold weather or inadequate heating within the home or equipment failure due to a lack of regular filter replacement); and (OK so where is the list of reasonable maintenance required to meet this Plan they dont give you one giving them just one more loop hole out of paying for any repairs) Pre-existing defects or deficiencies in existence or which have previously been repaired during the first 30 days prior to the Effective Date. The Plan does NOT cover: Parts and Components not specifically listed in these Terms and Conditions or that relate to a manufacturers part recall; Providing for or closing access to covered items, except as noted
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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in these Terms and Conditions; Service or repairs of Equipment that are related to inadequacy or lack of capacity, improper installation, previous repair, design, or any modifications to the system or appliance, unless performed by us under these Terms and Conditions; (Hey! Wait a second! Direct Energy does NOT perform repairs, they hire Authorized Repair Technicians so is this just another loop hole for not paying?) Electronic, computerized or energy management systems or devices, lighting and appliance management systems such as Smart House; (warning: most major appliances HAVE computer components including thermostats, furnaces, water heaters, ranges, ovens, washers, dryers, etc) Service, maintenance, repair, or replacement necessitated by any loss or damage resulting from any cause other than normal usage; Loss or damage due to chemical or sedimentary build-up, misuse or abuse, unauthorized repair by others, failure to clean or maintain the Equipment, rust, corrosion, insect infestation, mould, mildew or bacterial manifestation, missing parts, structural change, fire, freezing, electrical failure or surge, water damage, lightning, mud, earthquake, soil movement, windstorms, hail, theft, negligence, intentional acts, riot, accidents, pet or pest damage, acts of God, or failure due to excessive water pressure or any other perils are not considered loss or damage by normal use; Parts, units, Components, and/or any subassemblies that are covered by a manufacturers, contractors, builders, or installers warranty or program of reimbursement; Upgrades or for the cost of construction, carpentry or other modifications made necessary by existing Equipment or installing different Equipment; Preventative Maintenance; Consumable items, including but not limited to bulbs, lamps, filters and fuses; and Replacement of spoiled food as a result of failure of Equipment or electricity outage. It then goes on to mention Building and Zoning Code Requirements or Violations, Hazardous Materials, and Miscellaneous as if everything already listed wasnt enough loop holes to get them out of ever paying for any repairs.
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
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TOTAL Bob pays out of pocket WITHOUT the Plan: $7984.83 + taxes
Lets See His Savings With the Total Home Protection Plan:
(you can assume this plan will go up in price at least 2% p/year) Year 1 - $875.62 Year 2 - $893.13 Year 3 - $910.99 Year 4 - $929.20 + $45 service fee to find out they dont cover your hot water tank + $900 for the replacement hot water tank = $1874.20 Year 5 - $947.78 Year 6 - $966.73 Year 7 - $986.06 + $45 service fee to find out they wont replace your furnace + $3600.00 for the furnace replacement = $4631.06 Year 8 $1005.78 + $45 service fee to find out they wont replace the guts on your toilet + $200 in repairs = $1250.78 Year 9 $1025.89 Year 10 - $1046.40
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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The average home owner who thinks everything is covered by this amazing Plan is the one who pays the most!
Consumers Wake-up! Its time to be aware of what is really going on in the world and how companies are taking advantage of you.
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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They should NOTbe able to send out flyers in our utilities bills giving us the impression that the utility company is offering the program. They should NOTbe able to offer one thing but put the disclaimer print somewhere else. The disclaimers should HAVE to be included in their advertising materials! They should NOTbe misleading customers into thinking their policies cover everything when it clearly states in their terms and conditions that it doesnt. Its simply wrong!
Even the wording is a blatant lie they say NO CHARGE then in the fine print state every call is charged $45.00. How is $45.00 a NO charge? It is a charge you pay every time you use the Plan!
If you are tired of being misled by false advertising notify your Better Business Bureau if we dont take a stand against this kind of immoral abuse of consumers it will continue to spread.
Speak up for your rights as a consumer and let businesses know you wont tolerate this kind of abuse anymore. We can make a difference by promoting consumer awareness! If you have any comments or suggestions please address them to Kay@consumerswakeup.com your questions and ideas help me in preparing and presenting material that you (my neighbor) may want to know about (or need to know about). You are the reason that I write these articles. Disclaimer: I have one too! This report is based on my personal interpretation of the terms and conditions as Direct Energy clearly outlines at http://www2.directenergy.com/ontario/home/pdfs/5n1bundle_TandC.pdf I welcome rebuttals as well as additional supporting information.
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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Author: Kay Kinder Consumer Advocate www.ConsumersWakeup.com Written: March 20, 2009
http://www.consumerswakeup.com/Direct-Energy-Scam-Report.html
10/26/2011
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