2. Learn about the NOSI scam

Some home service companies used notices of security interest (NOSIs) to scam homeowners. Home service companies rent or finance equipment to homeowners like HVAC units, water heaters, or furnaces.

How the scam worked 

Step 1 

A home service company would send a salesperson to knock on the doors of vulnerable homeowners.  This included older adults who: 

• had a difficult time understanding because of dementia or other conditions,  
• had lower literacy skills, or  
• spoke English as a second language. 

Step 2 

The salesperson offered equipment like a water heater or furnace at a price that was much more than it was worth. For example, if it was worth $5,000, they offered it for $30,000.  

The salesperson then told the homeowner that they did not have to pay for the equipment because the cost was covered by government rebates. But this was not true.  

There were government plans available to pay for the equipment but the company was not using them.

Step 3 

The salesperson pressured the homeowner to sign a contract right away without reading it or getting advice.  

By signing the contract, the homeowner agreed to: 

• pay for the equipment by borrowing money from a financing company and not through government rebates, and 
• let a financing company put a NOSI on the home that was based on the high cost of the equipment.  

A financing company gives loans to people.

Step 4 

The financing company transferred the money that the homeowner was borrowing from them to the home service company.  

The home service company then installed the equipment in the homeowner's home. And the financing company put a NOSI on the home that was based on the high cost of the equipment.  

The homeowner thought they paid for the equipment through government rebates. And they did not understand that they were borrowing money or that a NOSI had been put on their home. 
 

Step 5 
The homeowner found out about the NOSI and the loan with the financing company when they noticed automatic withdrawals from their bank account to the financing company.

The homeowner ended up paying tens of thousands of dollars to the financing company to get rid of the NOSI and end their contract.