Quote:
Originally Posted by BeltlineFan
I just happened to stumble on this thread and after quick review I've cancelled my plan with CST. Thankfully, it's only been two $200 payments since my son was born so I'm considering myself lucky. There definitely were some pressuring sales tactics from their end when we set it up on how much better they are than the banks and how we needed to jump on this early.
The sales person did mention the sales fee at the beginning but I didn't realize it would be so much or that the other RESP providers, such as banks, wouldn't have similar fees. Because the sales fees are taken up front (so they still get your money if you cancel), I don't get any of my $400 dollars back. But if I'm understanding this correctly, I can set one up at a bank and avoid paying the next $4000 that would all be going to the sales fee as well.
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Yeah you’re lucky. I had a client years ago was was angry with one of those plans and wanted out. We found out it would have cost about $8,000, if I recall correctly. It was a large RESP. She didn’t care what it cost.
Best thing you can do now is to mention this to friends with young children to help them avoid your mistake. I was once told that there are no bad products, just bad application of products. I can’t find any redeeming qualities for this type of RESP.