If you concluded an open-ended remote monitoring service contract on or after June 30, 2010, the service provider is subject to rules that limit the cancellation fees that can be charged. These rules provide that, with some exceptions, the remote monitoring service provider cannot charge cancellation fees.
Exceptions: possible cancellation fees
Merchants may charge cancellation fees when they accept that :
- you do not pay for the alarm system in full when you sign the contract;
- the amount you did not pay gradually decreases every month.
In such a situation, the later you cancel your contract, the lesser the fees will be.
Calculating the cancellation fees
If the exception applies, here is the formula to allow you to calculate the maximum cancellation fees you can be charged.
[Unpaid amount on the sale price of the alarm system at the contract signature date] - [1/48 x Unpaid amount on the sale price of the alarm system at the contract signature date x Number of complete months elapsed] = Maximum cancellation fees
Sample calculation of cancellation fees
When you signed your contract, the merchant provided equipment with a value of $150. You did not pay this amount. Each month, the service provider decreases the $150 total by a certain amount. You decide to cancel the contract in the 22nd month.
To figure out the maximum amount that can be charged, the provided must apply the following calculation :
$150 - (1/48 x $150 x 22), simplified as $150 - $68.75 = $81.25
The service provider can charge a maximum fee of $81.25.
Failure to respect the maximum cancellation fees
If your service provider has charged cancellation fees greater than what is permitted, you can dispute the fees charged. You can also file a complaint with the Office de la protection du consommateur. The Contact us page provides the ways to reach us.
Contracts signed before June 30, 2010
If you signed your remote monitoring service contract before June 30, 2010, the service provider can charge you cancellation fees as stipulated in the contract. If you find these fees excessive, you can try to negotiate with the service provider.
The fees charged may be greater than the legal limit. Contact us to find out if recourse is available to you. You can also consult with a lawyer.
Last update : May 3, 2021
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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.