You are about to be admitted into the hospital to have a baby and you are trying to make sure all bases are covered. Is the baby's room ready, are we ready, should I breast feed, etc.? Issues like whether or not you need to set up a stem cell account and do I want an epidural or will I be that super woman, are floating through your head.
After the glorious birth of your baby all of these concerns seem like distant thoughts. Now there are new concerns. Will I ever sleep again? Can I do this? Is the baby eating enough? All legitimate and common thoughts.
The most wonderful thing happens while at the hospital, you receive a "Welcome Package". It has all sorts of informative literature from nursing, safety, tele-help numbers, and saving for your child's future. Who is right there in the mix? Heritage Education Funds / Heritage RESP. Wow! I hadn't thought of that.
They are so wonderful in the way they help you set up a SIN number, health card, bank accounts and Passports. Incredible assistance all within 2 months of the baby's birth. You can't image when you'd have done all this... you're exhausted! The helpful representative now switches gears and gets you setup early with a savings plan for your child's future. Let's do it!
Here's where things get dicey...
You call this a scam if someone is helping you with setting up the SIN number and health card?
ReplyDeleteSo when my car insurance is setting up my claim for the accident I had (not my fault!), that is the scam too?
Or when my bank opens a savings account for me, that is the scam too?
DeleteHi, I am a student and a recent victim of Heritage. They robbed me and my family of 10000 dollars, and like a lot of the other people here we did not see this coming. See, heritage has dirty'd the lens that society looks through and as create an honorable image about itself which it portrays to society. This is obviously not the case and it is time somebody cleans that lens and exposes Heritage's true colors. Myself and an investigative journalist are starting a film series called Exposed. The first episode, Heritage. The idea is simple, we make Heritage famous through a viral film. Then use that fame to expose them for what they really are and focusing societies attention on these scam artist. With enough attention we can demand for a change. Currently, we are beginning to gather proof of this scam. This includes: electronic signatures, documents, interviews with people that are wiling to stand up for themselves, interviews with Heritage, proof of aggressive sales tactics/marketing schemes and related court cases. We need your help though, this blog is a great start and there lots of people here who are also victims. People that could help in bringing down these crooks. Email me, thejalger01@gmail.com
The scam part is the fact that they misrepresent themselves as government employees. I fell for this also, in fact, in my day timer I even made a note that the Heritage rep was coming by my home to help me with the paper work and to make sure that I was aware of all the government incentive programs. At this point I beleived Heritage to be a government department. They were also helping me to obtain a "Document to travel" 2 weeks after the baby's birth as there was insufficient time to obtain a birth certificate and a passport. I later discovered that the info. I had received from them was 3 years out of date. When I reported this to them they insisted that the lady in the clerks office at the court house did not know what she was doing and that they "would get on it right away!!!" First came the child benefit application (with instructions on what day of the month the money would be deposited into my bank account). Also, the Heritage employee called "head office" to see the amount I would qualify for, then the child suppliment benefit followed by my GST entitlement.......finally the 20 % top up of RESP investments and grants! Now, she did the math and advised my to put all of money I was entitled to into a RESP fund to allow for compounded interest and early investment time (would own more shares). She also lied and said I could increase or decrease amounts at any time........what did I have to loose ????WRONG ! By decreasing the investment to an affordable amount I lost out on $8,000.00 in one year !!!!! Money meant to be invested for my children....Shear robbery !!!! The forms you are required to sign basically contradict EVERYTING the rep preaches. When you report this to head office, they act surprised and make you show proof of this wrongful misrepresentation. DON"T TRUST A WORD THEY TELL YOU....THE WILL TRY TO DO IT ALL BY PHONE SO YOU DO NOT HAVE A LEG TO STAND ON.....ALSO, EVERY PERSON WITH HERITAGE YOU SPEAK TO WILL GIVE YOU A COMPLETELY DIFFERENT STORY !!!! DON'T JUST BELIEVE ME....PUT IT TO THE TEST YOURSELF.......BEFORE YOU SPEND 2 DECADES INVESTING WITH THEM !....RUN !!!!
ReplyDeleteThis certainly is a scam! Membership fees eat up your investment! Go to a bank or investment firm where no fee is taken up front. Your child's money should be invested for them not the companies commissions! If you invest in mutual funds there is the MER but it would never be as expensive as these "membership" fees! They are also only charged while your money is invested with them. MER stands for management expense ratio. You pay someone to manage only your funds only for the time you are invested with them. At Heritage they charge fees for the whole program up front. If you move your RESP from a bank they don't charge fees. If you move from Heritage they keep all the membership fees that have been charged in advance! Shame on this company for ripping off children!!!!
ReplyDeleteWe've been members of Heritage since our first child was born- that was 10 yrs ago. A lot of people has a misconception about RESP. It is a long term savings program where you make a commitment to invest regularly (for 18 years). For parents who doesn't treat this commitment responsibly, of course there's a penalty, as with any government assisted program like RRSP. When my husband lost his job for 6 months, Heritage was able to help us adjust to our financial situation. We were able to put a hold on the payments and when my husband found a job 6 months later, we had an option of paying the missed contributions or just continue on.
ReplyDeleteSpeaking about fees, they're much lower compared to other group plans or the bank. When our 3rd child was born, I went to the bank to inquire about their RESP and they're not upfront with their fees. At first the bank said they don't have fees but when I asked about MER, the bank said oh yah! it's average about 2.5% yearly of your total investment (no matter how your fund is doing). So I did a quick calculation if I were to invest $2000/yr x 2.5% (1st year), $4000 x 2.5% (2nd year), $6,000 x 2.5% (3rd year) and so on... the principal is compounded annualy! I was so shocked of the numbers, the total fees for 18 yrs is $8500 compared to Heritage for $2000 annual contribution it's equivalent to 35 units x $100 per unit, that's only $3500 membership fee and it can be paid back to us depending which option our child chooses. I asked the bank if they return their fees and they just shook their head.
Our neighbor lost half of what she invested when the market went down. The bank doesn't show in the statement how much fees you've paid so far. Banks are good for other investment options but when it comes to our child's future, I'd rather sleep good at night knowing that our money is manage well by RESP experts like Heritage.
wow...interesting blog...one entry...you never state who you are or respond to people's comments...seems to me it is you that may be the fraud, not the company that currently has over 375,000 clients and $1.7 billion in RESP assets under management (I know, I just bought)
ReplyDeleteDo Some research:
ReplyDeleteToronto Security exchange called it a Scam. So there you have it.
Perhaps you can post a link that indicates where the "Toronto Security Exchange" (perhaps you mean the Toronto Stock Exchange, as the institution that you listed doesn't exist) labels Heritage Education Funds Inc. as a "scam"?
ReplyDeleteI highly doubt that you are able to provide such a link, as you are simply another example of an ignorant human being hiding behind your keyboard spewing falsehoods to support what really amounts to your lack of understanding of financial products (and apparently the ability to read a prospectus).
So there YOU have it.
I really doubt that it is a scam that can be last for so long!
ReplyDeleteI have been contributing to my child's resp and would have the harvest coming summer.
The only thing that I don't like is that the illustration provided was so beautiful, but annual statements provided showed declining of amount provided to each unit.
I am crossing my finger to see how much I am able to get this summer.
Heritage is a joke, for starters the funds under produce. The fees are just disgusting, fees can run upwards of $5000, seems a little silly just to try to provide for your childs future. The reps are all a bunch of liars, they dont disclose fees up front or much at all actually. Stay away, it is a huge scam. I cant believe they havent been shut down. The reps have absolutley zero training and are not all that intelligent. Waste of money and no guarantee you will even get your money back out of it. Seems like alot of hassle just to try and get your kid through university. Very unimpressed
ReplyDeleteHeritage may not be a scam but I know a person from Hamilton in Ontario who ended up with lawyers to get his money back from Heritage. Heritage agents definitely take advantage of people. The most annoying part is they never tell you about the enrollment fees!! and Your signature is next to the box where the ENROLLMENT amount is clearly stated! They give you the papers to sign and initial them, and after that they fill out the numbers and fees you will be paying
ReplyDeleteFor those who keep talking about MER you gotta stop. I am a financial planner and it drives me up the wall. Simple question is would you rather have a your 100 grow to 200 or would you rather have your 100 grow to 150 dollars. Everyone will choose the 200. The MER does not cost the client any money, it is the cost associated with the fund for doing business. You get what you pay for. If you want a low MER you will likely get 150. If you are in a fund with a slightly higher MER you will probably see closer to 200. Guess what. You only put in 100. Financial Planning is about long term strategies. Get a financial planner, their free. Do not go to the bank, they do not do financial planning, they pick funds and tell you about MER's. Do not try to do it yourself.
ReplyDeleteOh, Heritage funds are not scams. They are great for helping people save money. Are you likely to see the illustrated benefits, not likely, but cross your fingers your child goes to school and lots don't. Be smart and use a non-group RESP. Pick a more aggressive portfolio of mutual funds (six or more) as the child gets closer to the age of school scale it back to moderate before conservative 3 years before they are going to school. If you really want to do it yourself pick a canadian equity fund, a balanced fund, a us large cap fund, a european large cap, a canadian/american small cap fund and others. Don't worry about down turns in the market if you do monthly contributions. You buy more shares each month. In the long run that dollar cost averaging strategy is VERY beneficial. Don't get scared, hold the path.
ReplyDeleteI've just stumbled upon this site and I'm reading several poorly informed comments with little in the way of actual fact. Here is my professional opinion:
ReplyDeleteGroup RESPs are not a scam. However, they do have a dubious reputation and the various provincial commissions have received plenty of complaints. Companies selling these plans were investigated by the OSC in 2007 and new recommended rules were required to be enforced. I do not have the specifics of these rules. I have dealt with many frustrated individuals who have wished to transfer out, and have done some research on the matter.
As a professional, I do not recommend them for the following reasons:
1. Their fees are not transparent. You know what you pay for with a mutual fund or ETF. There are commissions, enrolment fees and investement management fees. Yes, many mutual funds charge in excess of 2%, but you should be able to get a blended index fund(s) that charge 1.25% or less. Do your research on GlobeFund. Many ETFs charge less than 0.50%.
I would estimate that when you add up enrolment fees, commissions, IM fees etc the Heritage guys typically get anywhere from 3-6% of your investments.
You have to ask yourself this question:
Investment advisors manage millions of dollars and earn 1% per year (before costs and taxes). That means a successful advisor typically must manage $10 Million or more to earn a $50k annual take home salary.
How does a Heritage RESP salesperson who sells $100 monthly plans possibly earn a living if they only make 1% in commission? They'd have to sell hundreds of plans per month.
The reality is all those enrolment fees go to pay higher commissions and salaries to these Heritage RESP reps.
I personally know the owner of a Heritage RESP office and I am honestly flabbergasted as how someone selling $50-$100 monthly RESP plans is as wealthy as he is. Something just doesn't add up.
2. They advocate slow and steady growth (and in some cases guarantee your initial investment principal). This is good, but you must understand that this is because they are limited to invest your RESP funds into government bonds, mortgages and GIC type investments. These typically gain 1-5% per year and rarely lose money for any significant amount of time.
To the poster above who complains about the bank mutual funds losing money - well, equity funds are volatile. It is the investor's choice which to invest in.
If you don't want to take on the risk, you could easily make the same safe investments (gov bonds, GICs, Mortgages) in a self-directed RESP at a fraction of the cost that you'd pay to a Group/Trust RESP company like Heritage or USC. And there would be no enrolment fees or user fees. Although many Banks charge annual RESP fees, you can ask them to waive it. Brokerages usually don't charge annual fees other than their management fees.
3. Lack of flexibility. With a self-directed plan - you have the advantages of:
i) a greater selection of schools.
ii) fewer penalties upon withdrawing (if your child decides not to go to school).
iii) more flexibility to tranferring to another sibling or relative.
iv) skipping payments (in tough times) and making balloon payments (in good times).
Heritage is a scam, just try to get your money out in time to pay the tuition fees. Fees are due mid July at EVERY post secondary school that my children (2 of them) have applied to and Heritage releases the funds in AUGUST! I don't know about anyone else, but the reason I put the money away for the last 18 years is because I don't have 8 to 10 thousand dollars on had to forkout. Last year I had both starting college at the same time and Heritage seemed to think it was unusual to pay the tuition so EARLY as they put it. And pray that your child doesn't decide to change programs or not go back for the second year. NIGHTMARE!!!!
ReplyDeleteI was searching about this company and came upon this blog. I had to point out a few things that I found obvious, but no one else seems to mention.
ReplyDeleteFirst of all, this person set up a blog, with a title that suggests something. They then create a single post, and allude to giving more information in the future, which might prove what they suggest in the title, is true. Has anyone noticed that they haven’t come back to ‘prove’ what the title implies? It is entirely possible that they never intended to, as that might open themselves up to a lawsuit, or at the very least, the blog post gets taken down. I looked over this blog, and I would have to conclude that it’s only intention was to sling mud. This would lead a smart person to conclude that this blog was set up by one of the said company’s competition. It appears that this blog is proof that the internet is kind of like the ‘bathroom wall’ of the future.
I notice that all of the bad comments are left by ‘anonymous’ people. Is it possible that they are all left by the person who started the blog to begin with? It is pretty easy to smear someone or some company without any proof, just by having an ‘anonymous person’ post negative things, which they never prove.
If someone wants to post their name, and have some credible information, then they might be worth listening to. If not, it is probably just BS. I would submit that if anyone truly wants to find accurate information, go to a company’s website. They cannot have incorrect information there, as it would be against the law. A site like this, however, can be full of incorrect information. No one will stand behind what they type, and no way to prove it right or wrong.
Just posting some common sense.
Hello "Anonymous",
DeletePlease know that I am a real person with real issues regarding this company. It is important to let other parents know about the potential pitfalls when dealing with Heritage Education Funds.
You are correct, I was in the process of setting up this blog when I got bogged down in an investigation with OBSI. I didn't think anyone would find my posting. I'm so glad that you and others have!!
I am very curious about why you originally sought out this sort of information? You haven't mentioned anything in that regard. Do you need assistance? Please feel free to share.
How is it possible to find other Heritage parents and discuss things -- this is the only site I have found. We are victims of the 'changed rules' where they now claimed int he voting doc that Option 3 scholarships would receive "up to 100% of fees back at maturity but now when they gave only 26% back at maturity and ""no one got 100%", they in effect have mislead voters int he first place and then fraudulently did not return money. Now the rest of the 'fees' collected which were to be returned 100% at maturity are now going to be buried in the 'scholarship pool". What?? That was our CASH PRINCIPLE, not even interest accumulation. That's stolen money!! There seems to be phone calls and phone calls with no resolution other than suing them. WHAT HAVE OTHER PARENTS DONE?? bennettabenson@mts.net
DeleteBennetta, I am in the exact same position. I just spoke with Heritage yesterday and was informed of the same thing. Apparently 80% of members voted in favour of the change that would result in monies being re-routed from the 100% return of the admin fees to some other kind of pool. I'm so disappointed and angry. What are our options as parents? Is there somewhere we can complain (besides Heritage)? I believe it is a breach of contract somehow.
DeleteThe scam is that in order to get YOUR money out with the promised interest that your child (university student) has to receive a ridiculous amount of University credits in the first three years. The amount of credits that Heritage “requires” your child to get to get YOUR money out is simply impossible. Heritage is a SCAM plain and simple. They manage YOUR money for their best interest know damn well that they will keep all the profits and you have to stress and jump thru hoops to get if your lucky the principle you put in.
ReplyDeleteVery interesting comments. My name is Delayne. I live in BC. I have 2 children. One has completed BCIT, and the other is in second year SFU. I am not affiliated with Heritage Funds at all but I have money with heritage funds that i have been paying into for 20 years, and I have had no problems with them at all. I have received the money in a timely fashion, in August, ( sfu fees arent due until September) including the enrollment fees. I received all the enrollment fees because my daughter is enrolled in a program longer than 2 years. But I knew this before because I read EVERYTHING Heritage sent me BEFORE I signed up. I deal with Heritage at their toll free number. I agree with what proud Mommy says about the MER on funds. Those fees add up whether your mutual funds do well or not, and you dont get those MER fees back. I have mutual funds as well. With heritage, you do get those enrollment fees back if your child is in a program longer than 2 years. If they are in a program less than 2 years the enrollment fees dont come back. I think if Heritage is a scam it would of been shut down long ago. Anonymous, I know thats a lot of money to lose, if you have lost money with Heritage. I would feel bad too. If your child doesnt go to post secondary school, you will get your principle back, but not the interest or enrollment fees. You dont need to jump through hoops to get your principle back, however you do lose the interest. What people have to remember is to READ everything before you put your signature on. Thats just common sense. Heritage is good for people who need a bit of discipline to save for their childs education. Anyways this is my two cents worth. :))
ReplyDeleteI reallt don't understand for now. I am planning to transfer my kids' RESP to heritage...since there are lots of negatives I might as well just save on my 'savings account' at TD!!! ((-:
ReplyDeleteManaging your own education savings program takes lots of time, knowledge and, because you will be investing in the stock market, a lot of risk. You can lose a lot of money in the stock market.
ReplyDeleteYES, it is easy to get at your education savings plan money when it is invested in a bank RESP...and that is a big problem.
Your biggest risk of all is that you will find another use for your childs education savings and, with the best intentions of paying it back, borrrow it for other urgent puroposes like buying consumer items or taking holidays.
NO ... the whole point of Heritage and other group plans is to invest you education savings in non-stock market, government backed securities AND, to make it difficult and financially painful to remove your savings prior to being used for financing your childs education. It is a good strategy and one that the government supports with legislation and with financial oversight of all licenced group plans in Canada.
The self-rightious indignation coming from some on this forum is more thatn likely coming from those who are pissed because they are finding it not so easy to "BORROW" from their childs future.
Thi is a full out scam. The true colors of Heritage show up when you are unable to pay for a period of time. I was ill and we could not contribute and when I asked Heritage how my child's fund was doing they said that because it was inactive the moeny was GONE...all $6000 thAt we had contributed went into their "enhancement fund" for "other kids"... so MY money for MY kids was STOLEN...they sent me a letter saying that I need to pay 12,000$ to reinstate...or too bad the money submitted before is gone. How can this be legal? I was unable to contribute for about 3 years.The idiot rep in Montreal did not inform us at all. We expected it to be like an RRSP...which still sits there even though you don't contrubute. They STOLE my child's money...stay away from Heritage because if you find yourself in an unfortunate situation, like I did, they will take your money. Scum of the Earth.
ReplyDeleteThe same thing just happened to me. I went back to university for 5 years to furthur my career and put my payments on hold after 3 years of contributions. When I went to re-instate it they said it was gone to the enhancement fund. Never had heard about the 3 year lapse rule until now. Any thing that can be done??
DeleteYes, we were scammed as well. I'd like to talk specifically to "proud Mommy" who wrote the post about being such a wonderful parent and investing in a RESP. You must work for Heritage. They scammed me out of a few thousand dollars I had originally invested with them. I relocated and was not receiving statements from them. I had changed my address, however, there is no way for me to prove that since I acted in full trust. They just informed me that because they did not hear from me my money is gone!
ReplyDeleteI am not letting this one go and sing from the rooftops so that others are not deceived in this way. I am happy for posts such as this that educates truly "proud" parents. If you don't work for Heritage(which I believe you do as your post reeked of a sales pitch), then you best get your head out of your ass.
all the negative comments are from ANONYMOUS I don't believe his/her comments. Better to meet the agent to find out ---- read the contract carefully and ask questions
ReplyDeleteMy name is Greg Dargis.
DeleteThis is exactly how they legally STOLE from me.
> I can put up with the front end Fee, afterall there was a good track record of returing it.
> What I could no put up with is the following. Heritage RESP advertises as making 5-7% each of the last few years. After contributing the max (for my twins, $5K / year)the following is how much COMBINED interest I earned (between the TWO accounts) in 3 years.....wait for it.... $240 on an $18,000 investment (including the government grants).
Here is the small print.... They take an INTEREST EARNED FEE of $25 every time they pay you interest, so if your funds do not earn enough interest to pay for the $25 fee, they keep the money earned.
THOSE SOBs are allowed to advertise making 7% returns every year, yet my account received less than a 1% return over a THREE YEAR PERIOD...
Theives they are.. till the day I die I will curse them for stealing from my children. Stealing frm me is one thing, however bolding showing up in my house, saying how cute my kids are, then STEALING from them will leave me enraged for a couple of life times....
Not sure why we don't have regulations to protect us against these criminals.
I need to continue ranting, for the benefit of those of you reading this.
DeleteOn each of the last three years, estimated return of my children's portfolios the total estimated amount at maturtion has been dropping. When they show up in my house, the number was $107 K if I did the maximum contributions. I'be been contributing the max every year.
- Year two $103 K esitmated value at maturity
- Year three $98 K estimated value at maturity
To add insult to injury, these drops in estimated maturity values are not coming because of the economy because these guys BRAG about make 6-7% every year including 2011.
So why the drop in estimated maturity values...??? I can't explain and neither could the rep Milton Breker, but expected me to keep throwing $5 K a year at them.
Please do not be fooled by there charms and 'appearance' of being civil. I disregarded everyone's emotional advice prior to the investment, somehow thinking it would be different for me. Look at me rant now, I can bash these guys on their small print, and nickel and diming you to death until I am blue in the face...
Stay away from them
Thank you Greg,
DeleteYour information is very important and you are just in sharing it. It's shocking every time we review a statement and there seems to be so little saved after we've invested so much.
Don't let Heritage guys in your house. They will rip you off! This business is disgusting and must be closed down by the government. The enrollment fee is outrageous and is not returned under most circumstances. If you open a group RESP as soon as your child is born they will charge you up to 5000 (five grand) in enrollment fees. I have just received their annual statement it shows that I all my contributions over two years have been wasted on these fucking fees and if I decide to transfer my RESP to a normal bank the fees are not returned. They penalize you for everything. To be continued.
ReplyDeleteHello,
DeleteYes, as your contributions increase so do your membership fees. They correlate. Our sales rep. said that we would definitely be getting those fees back at the end of the contribution period, but if you look closer on your statement, it says those fees are not guaranteed to be returned. SHOCKING BUT TRUE! You won't know until the end.
To Everyone...
Please start other saving methods and RESPs. There is no law against have a multiple of accounts. The only limit is the government's annual contribution.
I just found that my hard earned $10,000 was gone!!!! Like some posts here, we discontinued our contribution because we moved out of Canada. we called Heritage several years ago and was told that the account stayed inactive and they would send us some documents, mentioning NOTHING about consequence. However we have never received any documents. We called them today and was told that because we did not send them back the document in time, the money is gone and we will have no right to get the money back.
ReplyDeleteCan anyone give me any idea on how to get my money back? I'd really appreciate it!
a desperate mom
Hello Desperate Mom,
DeleteI am sincerely sorry to hear about this! If you have not already done so, I suggest you contact OBSI (www.obsi.ca) and fill out a complaint form. Start collecting all of your correspondences with Heritage, rattle your brain for details, anything that can help you with your investigation. When a case is opened it puts a pause on your account activities. It could take up to a year to resolve and you may not like the outcome.
Please let us know how you are doing. I may be able to offer more insight depending on your current situation.
I opened an account for my daughter in August 2009. Before I signed the application. Heritage agent did inform me about all the fees that will be charged and the options available to get that fee back. I have read the 40 page document which I received in the mail after signing up with them. It clearly states all options regarding what will happen if you stop paying your regular units. There are multiple options. Pay montly, Yearly, lump sum every 5 years. If you want your money out early then you will get your principal back minus the membership fees. You do not get any interest back either. So there are some disadvantages to this program. I would say after reading the booklet that this program is a long-term program. If you want to get out of it then you better follow all the printed guidelines by Heritage.
ReplyDeleteNumbers do not lie...
ReplyDeletesee my response on April 5, 2012 @9:37 AM to an anonymous poster wich is likely an Heritage RESP scam arttist...agent.
I HAVE HAD HERITAGE RESP FOR MY KIDS, NEVER HAD ANY PROBLEMS. Its the best resp dealer anyone could get in the market. They have very decent returns and all the guidelines are very clear.
ReplyDeleteThere is no hidden fees like in the banks. I would recommend this product to all the new parents.
I have been thinking about taking a job with Heritage...now I'm not sure..
ReplyDeleteThere are certainly many companies who deal in RESPs. What position are you considering within the company? I've had dealings and countless conversations with a person at every level within Heritage. I may be able to provide you with some valuable insight. Let me know.
DeleteHeritage Fund as I'm cashing in this year. ( to use the term loosely) 100.00 approx a month. Initially was 48000. for education. I'll be lucky to see 20000.00. That is if my son is a genius and he doesn't quit. Then I'll get less than me and myself(government grants) contributed. They lied about being a government agency to begin with. Can anyone say class action. You can't complain to any one because they have it so confusing that by the time you get it all figured out your hog-tied. They are crooks plain and simple. My advise is to run, run away. If you're in it now take the bath, get what you can. Look after your own money. You'll be further ahead in the end. I could puke.
ReplyDeleteRobo, can you please post more details? How much are you getting back in principle? How much in EAP's?
DeleteI have a very hard time believing that you will get back less than you put in, after 18 years. It seems, however, easy to post that on the internet, and not have to prove it. . .
I am here to state that what ANONYMOUS has stated above about Heritage being a scam is true. How do I know? I used to work for Heritage. They actively encourage their salesforce to lie to clients and falsify client's investment knowledge, income and objectives and employment information just to open the account and make their commissions. The more you contribute monthly, the more units they buy per month and thus, the more commissions they make.
ReplyDeleteThey hire anyone and everyone and the majority of their sales people are uneducated dimwits who will tell you anything to get you to sign on the account opening forms. When they do their presentations, they purposely do not tell you about all the fees involved and if for whatever reason, you cannot continue your monthly payments, you are penalized because when you want to start payments again, they force you to make up the missed payments up front in one shot.
They actively encourage salespeople to use high pressure tactics and fear to scare people into opening accounts and making their payments now. They go after new immigrants on welfare and talk to them about saving for education and then when they submit the account opening forms, they lie and state that the client makes a lot more money than they actually do.
Don't believe me how abd they are? See this article
http://www.investmentexecutive.com/-/osc-orders-compliance-improvements-at-heritage-education-funds
STAY AWAY FROM HERITAGE EDUCATION FUNDS, STAY AWAY FROM GLOBAL RESP, STAY AWAY FROM CHILDREN'S EDUCATION FUND AND CST/Knowledge First Financial. They all do the same things. Heritage has a lady NAMED SUZANNE GILLIES who nr
ReplyDeletenotoriously lies to clients and pretends TO BE A GOVERNMENT employee who is their to help you understand all the government related benefits and applying for the Child tax benefits.
BEWARE OF "SUZANNE GILLIES" from Heritage Education funds, she purposely does not tell you that she is a salesperson on commission and purposely does not tell you about the fees you pay. She was caught 10 times falsifying client information after she left the client's home.
She would purposely act like she is a nurse or a government employee to help you apply for government benefits, but she never goes over the Income, Net worth and employment information with you when she is at your home. Then she gets you to sign the application form with all this income/employment information left blank on purpose. She asks you for a void cheque because she tells you that she needs it to help you apply for the Child Care Tax Benefit from the government. This is a "SCAM"
Here is the BIG CATCH, when she leaves your home, she fills in the information about your employment and income herself and OVERSTATES how much your income is in order to have bigger payments come out of your bank account.
FOR EXAMPLE, SHE LEAVES YOUR INCOME & EMPLOYMENT SECTION BLANK, THEN TELLS YOU SHE IS THERE TO HELP YOU APPLY FOR GOVERNMENT BENEFITS FOR YOUR CHILD. SO THIS MAKES YOU THINK SHE IS THERE TO HELP YOU. NO, NOT at all. SHE LEAVES YOUR INCOME AND EMPLOYMENT INFORMATION BLANK AND GETS YOU TO SIGN THE APPLICATION FORM, THEN WHEN SHE LEAVES YOUR HOME, SHE WILL FILL IT IN HERSELF AND STATE THAT YOU MAKE 6 FIGURES AND INDICATE THAT YOU WANT TO MAKE MONTHLY PAYMENTS OF ABOUT $100-$200/MONTH.
BELIEVE SHE HAS BEEN CAUGHT DOING THIS TO CLIENTS WHO COMPLAINED ABOUT HER HIGH PRESSURE TACTICS FOR AT LEAST THE LAST 12 YEARS NOW.
PLEASE LISTEN TO ME, STAY AWAY FROM HERITAGE EDUCATION FUNDS AND MORE SPECIFICALLY STAY AWAY FROM "SUZANNE GILLIES" WHO WORKS FOR HERITAGE EDUCATION FUNDS. IF YOU WANT TO SAVE YOURSELF A HEADACHE, STAY AWAY FROM HERITAGE EDUCATION FUNDS AND SUZANNE GILLIES.
SPREAD THIS WORD TO EVERYONE YOU CAN TO SAVE ANYONE FROM THE BIGGEST MISTAKE THEY CAN MAKE.
HOW DO I KNOW THIS? AGAIN, I USED TO WORK FOR HERITAGE ON THE INSIDE. THE MANAGEMENT DD NOT CARE ABOUT CLIENTS COMPLAINTS ABOUT SALES PEOPLE USING HIGH PRESSURE TACTICS. THEIR ATTITUDE WAS THE MORE SALES WE MAKE, THE MORE MONEY WE MAKE. GO TO GOOGLE AND SEARCH ARTICLES ABOUT THE OSC PENALTIES AGAINST HERITAGE EDUCATION FUNDS AND YOU WILL SEE THAT THEY ARE FORCED TO USE DELOITTE AND TOUCHE TO MONITOR EVERYTHING THEY DO AND THE OSC FINED THEM A COOL 1 MILLION DOLLARS FOR LACK OF COMPLIANCE AND NOT PROTECTING CLIENTS.
The unfortunate thing about Anonymous' post is that everything is TRUE. Susan Gillies is/was our agent and it was her actions that prompted me to start this blog. She's wretched. She's the one who "schooled" us on keeping records of every conversation.
ReplyDeleteMy question to Anonymous is... What do we do now? How, in your opinion, would you proceed if you currently hold an account? Would you recommend pulling out your money and take a huge loss? or keep your account(s) and hope that all goes well? HELP!
There are people like me who need guidance, and if you can help us... please do. Thanks.
Hi, in response to Ripped Off, I would say, it depends on many things such as:
ReplyDelete1)How much money have you put in with Heritage in total?
2)How old is your Child?
3)Can you continue making your monthly payments
People here are saying that banks are bad because they do not disclose their hidden fees such as MER on Mutual funds. No, not true, they provide it all in the prospectus. But one big advantage of using a bank over an resp Scholarship company is that with a bank, if you need to stop your monthly payments for awhile, you can restart them again no problems.
But with these scholarship companies like Heritage or Global RESP, if you temporarily stop payments and want to start again, they will make you pay back the missed payments up front. Furthermore, if you ever decide to transfer your plan to let's say a bank or mutual fund company, the structure of the Scholarship plan is so rigid with fees that it will cost you an arm and a leg to complete the transfer out and the you cannot make up the money they take away from you in fees.
So, if you have only put in a small amount with Heritage, let's say less than $1000, then you might want to transfer out, but you will likely only receive about $120 after fees are processed. If you have already been making payments with them for awhile and have $4,000 or more with them, it might not be worth it to transfer out.
If you are really fed up with Heritage and can absorb a loss, then I would move my account to a bank or mutual fund company ASAP because with Heritage, when you first open an account, all your contributions into the account in the first 2.5 years go to pay fees whereas with a bank, if you are buying lower risk mutual funds like a money market, all your contributions will still be there plus a small amount of interest. Either way, Heritage is bad news and so is SUZANNE GILLIES.
So it depends on how much money you have put into your plan with Heritage. The more money you have in your Heritage Plan, the less you will receive if you transfer out the account to another institution. Example, if you put in $10,000 with your Heritage plan and you want to move it to TD, you will likely only get back about $3000-4000 because of transfer fees and because of all the fees deducted initially will not be returned to you. If you invested 2000-3000 and you transfer or close the plan, you will only get back about $300 because all your initial payments go to pay their fees which pays the commissions of the sales rep(Suzanne Gillies) So it depends on how much of a loss you can stomach at this point because either way, you will incur a loss if you transfer your account. But, Heritage is awful, so it just might be worth it to move it out. Once again, if you contributed $4000 initially and move it to let's say TD, you will only get back about $300 and when you move it to TD, you cannot make up that $3,700 in contrbutions that you lost to Heritage.
So think about how you feel. I hope this helps. But spread the word, companies like Heritage, Global RESP, Knowledge First Financial(KFF), Canadian Scholarship Trust(CST) and Children's Education Funds(CET), these companies will stoop to any level to sell you a plan and charge you all kinds of fees and force you to make up any missed payments up front. They are bad news, even though banks are flawed, they offer much better RESP options.
Final word on RESP plans with banks, they have lower risk investment options so that you need not take risks with your child's education money. Sure, you can put the money from your child's RESP plan into mutual funds or stocks and tell yourself that it's a long term investment which can grow over time, however, with mutual funds/stocks, their value changes everyday along with the stock markets, so the risk is, when your child is ready to start their higher education and needs to pull money out, by that time, the markets might be down and therefore your RESP plan may drop in value significantly. Do you want to gamble with your child's tuition money?
Thank you Anonymous for your input. I hope this helps some people figure out how they should proceed. For us, I guess we are stuck. We really cannot afford to pull out & lose so much money.
DeleteThis leads us to another area of concern & despair that has been voiced by Heritage clients... and that is the payout of their investments upon maturity. Why does there seem to be so much trouble getting the money for our kids when they need it? How do we make the process easier?
Thanks, this is probably the best post. I was not sure what to do seeing I have four children. I cancelled my babies and I am saving for her somewhere else. My eldes child has too much to lose as well as my second based on the numbers you described. Darn! My third has $3100 and i can transfer 1700 due to the grant. What should I do? I am a single mom.
DeleteThat is how they make more money, they make it so difficult for clients to redeem money so that they can keep more of it for themselves. I sincerely hope that the OSC will close down all scholarship companies because they all make it so complicated to get your money back. With a bank, if your child does not go to school, you still get all your principal back but you must return the grants and the interest must be either donated to a school, put into your RSP or if not, you would have to claim it as income.
ReplyDeleteBy the way, the OSC recently extended the period that Heritage must maintain a monitor until at least December 23, 2012. The Monitor will call all clients when new accounts are opened to make sure the information on the application form matches what the client says on the phone(i.e.-the stated income level/job information on the form matches what the client says on the phone)
ReplyDeleteHeritage was also fined a cool One Million Dollars!!! Good, they deserve it!!
Ok... so the Ontario Securities Commission has fined Heritage... but, where does that money go? Do the poor souls who lost their savings get any of it back? Or, does the Government pocket it? And then what?
DeleteDoes a million dollars really mean anything to Heritage? Does it really hurt them at all?
My Global rep knows I make little money. If I show that I do not have enough money to have been investing as much, do you think I can get out of my contract.
ReplyDeletePlus They wll break a contract to add more money to your monthly payments,but but won't if you need to decrease.it. go figure.
The bad thing about these scholarship companies is they do not tell the client about what happens to their money if their child either completes the program early, drops out of school part way through, passes away during the studies or before or decides not to go to school. There were 2 documentaries about Heritage and KFF recently on CTV, with Heritage, a child finished a 4 year program in only 3 years and had about $8,000 left, and at first Heritage refused to reimburse them because they said if you finish school early, the left over money goes back into the pool to be used by other students. But after the mother went to CTV, Heritage refunded her 90% of the money.
ReplyDeleteThe other case with KFF(Formerly USC) was where a child passed away before she could start her studies and KFF initially refused to refund them. Again, after the mother went to CTV, they reimbursed her 90% of the money.
These companies will not go into the details of what happens if your child does not go to school or if they leave early or pass away, they also do not tell clients about the option to withdraw from the plan in the 1st 60 days if they do not wish to continue and very often they do not tell clients about all the fees involved because they do not want clients to walk away, all they care about is getting clients to sign on for as many units as possible so that they can make money. Nobody there cares about clients, they let the salespeople lie about client income and net worth and let salespeople forge client signatures and do not care.
Thank you for your post. This is yet another aspect of the "scam" which people would not even consider at the time they are signing on the dotted line. Even if we'd reviewed the fine print, I don't think this would be apparent.
ReplyDeleteWhen were the documentaries aired? I tried to find them online but had no luck. Perhaps you could offer some direction... I'd like to add a link to the news casts. Thanks!
HERITAGE IS A FRUAD ! My mother was sick with cancer and I am a student who requested a second deferral as a student who needed to take some time from school and take care of my home and sick mother. I was told that my documents weren't received 1 year later. Meanwhile they continued to send information to apply for an EAP that one of their representatives told me I could not apply for until I was in second year of my program. Finally they send a notice that my funds have been forfeited!!!! I am appalled, and disgusted by their operation and think that we should stop others from falling to this same mess.
ReplyDeleteI am not saying that they don't do anything right, but when there is an issue that arises they definetly miss handle the situation. I THINK WE NEED TO TAKE THIS STRAIGHT TO THE MEDIA AND MAYBE SEEK LEGAL ENFORCEMENT!!!!!!
Here is a link to a report done by CTV in February about Heritage Education funds refusing to refund money to a client after her daughter finished her program early.
ReplyDeletehttp://video.theloop.ca/watch/consumer-alert-family-fights-for-resp-money/2099033065001
Thank you, Anonymous, for providing the links to the CTV Consumer Alert broadcasts. That's awesome! Isn't it terrible though that this company has to be strong-armed into doing the right thing?
DeleteHere is the link to CTV's report on KFF(Formerly USC) who refused to reimburse a client in full when her daughter passed away before she could go to school.
ReplyDeletehttp://video.theloop.ca/watch/-/2130052427001
I know a single mom who was contacted shortly after the birth of her daughter in the hospital.
ReplyDeleteShe was convinced by Heritage to join … she was still actually groggy from the anaesthesia from her C section.
Thought she was doing the right thing for her daughter... is on social assistance …cut corners to paying the $100.00 a month for past year …she received her statement ….she has paid 1,100.00 of which all but $11.00 has gone to fees to these criminals.
Can someone please help stop this crime......there must be a way of stopping this company from doing this to people....Heritage is a criminal company...there must be a way that that this single mom can get her money back to reinvest in her one year old daughter future. Please, Please help her.
ReplyDeleteAny help would be appreciated…… I can be reached @ monab@rogers.com
It is very upsetting to see your hard earned money being allocated in that manner. I don't know how to stop them. There are lots of us hoping for the same guidance! Did anyone contact you directly?
DeleteI understand that there are a lot of people who have had problems (been ripped off) with Heritage.
ReplyDeleteFor those of us who are far too invested to turn back...I'd like to hear stories from some people who faithfully kept up with their payments and then attempted to get the money for their children's education...
Did you get "all" the $$$ you expected when your child went to:
* 3 yr university
* 4 yr university
* part time university
* 2/3/4yr college
* trades
Do you get to dictate how much you withdraw each year (i.e. to pay tuition, books, room/board) or does Heritage only give a certain amount?
I'd like to hear real-life examples...not a Heritage Rep description of how it **should** work!
Dear Anonymous,
DeleteSince your post there has been an increase of page views. I think a lot of people are wondering the same thing you are and keep checking back to see if there's a success story to be told. Myself included, as we have opted to keep up our payments.
The key is not to have all your eggs in the Heritage Basket. Don't allow yourself or your child to be left empty handed. Diversify!
I am in the process of tryng to transfer money out of Heritage Funds to invest in a different educational plan with another company. It has been a year long nightmare. We have three kids, they are completely denying us the ability to transfer money out of one account. The sales rep who came to our house when our first child was born has been rude and lying to us about other companies. His claim is that Heritage is the only hassle free RESP and that even if our kids go to post secondary school they probably won't see any money unless we stick with Heritage. Everything I'm reading here about Heritage is what he is claiming will happen to us with other RESP plans.
ReplyDeleteI wasn't so keen on the guy but everything he presented to us seemed straight forward and legit. Then we went to a financial advisor a year ago and when we told him about we have RESP his only response was, "please tell me it is with anybody but Heritage." Here we are, one year later, we'll be losing nearly $3,000, if not more.
I feel like they prey on the sleep deprived parents of a new born.
We are "fortunate" to not have been able to contribute a lot in the beginning and so we only give $50/month and only paid fees on 10 units. We signed up originally because my moms friend used Heritage when her kids were babies and she says it was a great investement and put both her kids through University (about 10 years ago) So when my daughter was born she gave us some money to start up an RESP with them. The initial unit fees are a RIP OFF! And we unfortunately just signed the dotted line based on my moms friends recommendation :( It was only after the first 2 years when we hadn't accumulated ANYTHING that I started to worry. I am still not sure what to do, I am fine to get back my principal minus the fees as the sales person did tell us about them and we were just too stupid to ask for more explanation. If I could be guarenteed my principal back I would move but not sure if its worth the fight since I will keep my payments at a low $50 and probably open up some type of savings account for her. When my son was born 2 years ago I decided to start his RESP with RBC. I have been paying $50 into my daughters Heritage account for 7 years and $75 into my son's RBC account for 1.5 years and my daughters is $4400 and my sons is $2000 - really huge difference in accumulation - he will probably overtake her in the next year or two!! Its so sad!!! +
ReplyDeleteI would also like to hear stories as well of people who have transferred their money out of the Heritage account into a bank RESP account please :) and what you actually ended up with of your prinicpal amount minus the unit fees
-Kate
Hi Kate, We are doing the same as you... sticking with low monthly payments until it's safe to stop or until our child goes to school. We've also created new RESP's for the eldest and our youngest, just in case we are scuppered again by Heritage, as others have been when it's time to cash in our chips.
DeleteYes, does anyone have a story about having "transferred their money out of the Heritage account into a bank RESP account?" and "What you actually ended up with of your prinicpal amount minus the unit fees?"
Your input could really help us all decide how to proceed. Wouldn't it be something if there was a mass exodus from Heritage!
Stay away from Heritage if you have a chance to decide to go in -- we stuck it out for both kids and with the 20145 change in rules we are screwed. "Fees' are not returned, very low expectations that we will received the scholarship money -- BTW that's not 'free' money --that's money that accumulated interest over all those years. Totally dishonest representation in the voting documents on how fees would be returned, as they had no intention of returning the money. Wish I could find parents for a class action complaint -- you get no where through Heritage.
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