Illegal practices at the heart of rental fraud

Scams targeting tenants looking for accommodation abound on the Web. However, even if the strategies used by fraudsters are illegal, the recourses available to defrauded Quebecers are limited. State of play in four key questions.

Can we require a deposit for viewing a property?

“Absolutely not,” says the spokesperson for the Regroupement des committees logement et associations de tenants du Québec, Martin Blanchard. In accordance with article 1904 of the Civil Code of Quebec, the owner can only require payment of the first month’s rent from a new tenant, after signing the lease. The landlord then collects the rent on the first day of each month. Asking for a deposit before visiting an accommodation is therefore “prohibited by law”, confirms housing lawyer Manuel Johnson.

What personal information can a landlord request?

A landlord can only request certain basic information necessary, in particular to confirm the identity of a future tenant and to carry out a credit check. “For that, all we need is the name, address and date of birth,” notes Manuel Johnson. Requiring a potential tenant to provide their social insurance number or the details written on their passport is prohibited, continues the lawyer.

Can you legally cash out an automatic deposit bypassing the security issue?

Fraudsters who ask for a deposit before visiting a home often try to reassure their victim by claiming that the amount requested will only be deposited at the time of the visit, when they provide the answer to the security question sent. However, there is a trick allowing the recipient to receive the money without knowing the security response, namely activating the “automatic deposit” option with Interac.

“One of the issues with Interac transfers is that there is no legal protection,” explains Alexandre Plourde, lawyer and analyst at Option consommateurs. There is no way to cancel the Interac e-Transfer after deposit. It’s like handing over cash. »

What are the remedies for victims?

The Canadian Bankers Association recommends that victims of rental fraud “contact the nearest police station.” However, police forces generally allocate few resources to this type of crime, especially since the fraudsters often remain abroad. Legal recourse against them is also limited. “The fraudsters, they disappear into the mist. Good luck if you want to pursue a civil suit against these people,” says Manuel Johnson.

With Jeanne Corriveau

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