First: figure out what stage you are at
The response is different depending on whether you have received:
- Collection letters or calls — pre-litigation. Time-sensitive but not on a court clock.
- A demand letter from a lawyer — escalation. Usually a final attempt before filing.
- A Statement of Claim or Plaintiff's Claim — court filing. Hard deadline to respond.
- A Notice of Default Judgment — they have already obtained judgment because no defence was filed in time. The path now is a motion to set aside.
The most important first step in every case: do not respond directly. Stop the clock by getting representation in place before the next round of correspondence.
The defence framework
The finance company's position is straightforward: there is a contract, the homeowner stopped paying, the finance company is owed money. The defence has to address the underlying contract — not the collection mechanics.
Under Ontario law, an assignee's rights are no greater than the assignor's. The 2018 amendments to the Consumer Protection Act provide six grounds — unconscionable pricing, unsolicited contact, misrepresented energy savings, unfulfilled maintenance, improper installation, and unfulfilled rebates — that can render the underlying agreement unenforceable. Where any of these apply, they apply in the finance company's lawsuit just as they would in the original installer's. See the full six grounds.
Documents to gather immediately
- Every page of the original installer agreement (not just the finance company's correspondence)
- All statements from the finance company
- The original cancellation rights notice if it survived
- Any rebate or savings paperwork that came with the sale
- A current parcel register showing any registration on title
- Photographs of the equipment data plates
- The Statement of Claim or other court document, if any
Common finance company plaintiffs
The finance entities most commonly pursuing Ontario HVAC contracts include CHICC, SNAP Home Finance, Crown Crest Capital, VaultPay, Financeit, Eco Home Financial, Home Trust, Ontario Financial Group, and EcoCapital.
Each company page covers the underlying contract pattern and the grounds that most often apply.
Frequently asked questions
What counts as 'being sued' versus collection efforts?
Collection efforts are letters, calls, and demands. A lawsuit involves a formal court filing — typically a Statement of Claim or Plaintiff's Claim from Ontario Small Claims Court or Superior Court. The deadlines and procedures are different. A formal claim must be answered within prescribed time limits or default judgment can follow.
How long do I have to respond to a Statement of Claim?
In Ontario, a defendant typically has 20 days from service to file a defence in Superior Court matters, and 20 days for Small Claims Court. The deadline starts running from the date of service, not the date you noticed the document. Do not let this slide.
Can the underlying contract be defended even if the finance company didn't sell it?
Yes. Under Ontario law, an assignee's rights are no greater than the assignor's. If the underlying agreement was unenforceable when originally signed, that defence applies in the finance company's lawsuit. The 2018 Consumer Protection Act amendments are the most common framework for this defence.
What if I've already missed the deadline?
It depends on whether default judgment has been entered and how long ago. Motions to set aside default judgment are possible in many circumstances, but the path is harder than responding within the original deadline. Get representation immediately if a court filing is involved.
