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Metcap Perpetuates Peculiar Double Bind: Landlord Charging Two Months Rent After Evicting Tenants

A recent Toronto Star Investigation exposed a long-established practice of charging tenants for two months rent (for failing to give notice) after evicting them. Metcap ( a major Toronto landlord) would later report the debt to credit bureaus when the tenant was unable to pay thus creating additional hurdles for already vulnerable tenants by ruining credit. This has had lasting effects for affected tenants who are unable to secure additional credit or obtain suitable housing.

Although Metcap points to a now-outdated Divisional Court ruling to support the practice, tenant advocates and the Ministry of Municipal Affairs and Housing have argued that the Residential Tenancies Act does not permit the practice.

Following public outcry and intervention from the Minister of Municipal Affairs and Housing, Metcap has agreed to work with the two tenants who were the subject of the Star investigation and to temporarily suspend the practice. The reaction has been mixed with tenants expressing both relief and some trepidation. However, Metcap has not agreed to discontinue the practice altogether, claiming it falls in a legal “gray area.”

While these are important steps in the right direction, the fight continues to ensure greater accountability and compliance from landlords, while guaranteeing that marginalized tenants do not fall through the cracks.

You can read the articles in the Toronto Star here:

Landlord evicts tenants, then pursues them for two months’ rent for not giving notice:

Ontario commits to closing eviction debt loophole:

Landlord Agrees to Forgive Eviction Debts:

June 29, 2015

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