Ontario's Consumer Reporting Act protects consumers from those who unlawfully access their credit files.

In most circumstances, it should come as no surprise to the consumer that a credit check has been done. Do your part and check your credit files periodically – at least every two years – to see if the information is accurate. To request a copy of your credit file, you can contact one of two major national credit reporting agencies free of charge. In fact, you may want to contact both, as they may have different information on file:

Equifax Canada, 1-800-465-7166
TransUnion Canada, 1-800-663-9980

More Information on the Consumer Reporting Act

What is the Consumer Reporting Act?

The act, administered by the Ministry of Government Services, outlines the kind of information a consumer reporting agency can report, stipulates how it can be used and protects you against the use of outdated and inaccurate information.

It also recognizes businesses’ need to have correct information. Landlords must know whether you can pay the rent and prospective employers may need to know if you are bondable.

How does it protect you?

The main purpose of the act is to ensure:

• your right to expect responsible conduct from businesses that gather, store, assemble or use credit and personal information;
• your right to know what is being reported about you and to whom;
• your right to correct inaccurate information about yourself.
  

What kind of information can reporting agencies collect?

Reporting agencies are required to make a reasonable effort to verify unfavourable personal information in order to report it.

Are reporting agencies restricted as to what past information can be used?

Consumer reports cannot contain a bankruptcy discharged more than seven years ago, unless you have declared bankruptcy more than once.

They cannot contain information about writs that represent the intention to sue, issued more than 12 months before the date of the report, unless the reporting agency has proof on file that the writ is still being pursued. Writs more than seven years old cannot be reported.

They cannot contain information about the payment of taxes or fines after seven years.

They cannot contain information about convictions for crimes after seven years or information about any criminal charges against you that were dropped.

How can this information be used?

Information can be given in response to legitimate inquiries, provided you have been advised, and can be used for most credit, employment and insurance underwriting purposes.

The most common use of this information is to determine your credit-worthiness. The agencies, which must register with the Ministry of Government Services, compile your credit history to find out how much you owe and if you are paying according to the terms of your account with a creditor.

The agencies sell this information to companies from which you wish to obtain credit. This means that a potential employer, landlord or credit grantor can examine your credit history every time you want to borrow money, apply for a credit card, sign a mortgage or apply for a job or an apartment.

No information on you or your credit history is available to the public.

Isn't credit reporting an invasion of my privacy?

Many consumers believe credit reporting is an invasion of their privacy. Remember that information recorded on the credit files is based on facts and not arbitrary judgments. Therefore, a trade-off of a certain amount of your privacy is necessary in order to obtain such benefits as credit.

In other words, credit reporting can help you receive a credit card or a loan much faster when information is available to reassure the credit grantor that you are a good credit risk. After all, it would be unwise to extend credit to someone who is not in a financial position to repay the money.

Benefit denied? Fee increased?

When you are denied a benefit or a fee has been increased, you can request, within 60 days, either the name and address of the consumer reporting agency or the nature and source of the information that was provided.

Can I review my file and correct inaccurate information?

Yes. At your request, a credit reporting agency must give you a copy of all the information contained in your credit history and personal information files. The information they give you must be easily read and in plain language.

If you find information in your file that you believe is inaccurate or incomplete, the agency must confirm or make the information complete or delete it from your file. However, you must supply proof that information is inaccurate when called upon to do so.

The consumer reporting agency works for both you and the business to which it is reporting. It must inform the business of your current credit situation – and be fair and honest about what it reports. It is to the agency’s advantage to provide the best and most accurate information possible to ensure trust in its services.

How is corrected information passed on to creditors?

Once the file has been corrected, the agency must notify anyone who has been given the old report within 60 days in advance of the correction. In addition, at the request of the consumer, the agency must notify persons who received the incorrect report within the previous six months to one year, depending on the circumstances and the type of information contained in the report.

What if you aren't satisfied that your file has been updated correctly?

• Contact the credit reporting agency.
• Follow its advice for supplying evidence of corrections.
• If your problem is still not solved, contact the Registrar of Consumer Reporting Agencies in this ministry at 1-800-889-9768.

Once the registrar receives your written complaint, the agency will provide the registrar with the information that relates to your complaint. The registrar may inspect the files the agency has on you and, if warranted, may order corrections to your file.

Bear in mind that the registrar must have your written permission before your personal file can be accessed.

The Consumer Reporting Act prohibits reporting agencies from using information, unless it is the best information available. But it can’t protect you from yourself. Using credit wisely is your best defence against having your credit requests refused.

What if false information is given out about me?

Anyone found guilty of knowingly providing a consumer reporting agency with false information or contravening the act is liable to a fine of up to $50,000 or to imprisonment of up to one year, or both. A corporation committing a similar offence can be fined up to $250,000.

Quick Tips for Maintaining a Good Credit Record

• Always pay your bills promptly. If you have a reason for being late with your payment, let the company know.
• Try to pay off any debt quickly. Avoid prolonged "easy terms" and avoid having to refinance at higher interest rates.
• Never sign a blank form. Remember, a contract is a legal document. Always read and understand the fine print.
• Be familiar with brand-name merchandise and its cost so you can compare goods and prices.
• Make certain you understand the total cost of your purchase. Add up those monthly charges.

From Our Consumer Files

An employee of a private investigation firm was found guilty of unauthorized access of consumer information from files held by a credit bureau in June 2001.

A consumer complained to the ministry when he obtained a copy of his credit report and discovered that a private investigation firm had made an inquiry on his report. The consumer believed an insurance company wished to obtain information it was not entitled to receive.

The party pleaded guilty and was fined $2,250 and provided a formal letter of apology to the consumer.

The case of the inaccurate records

A consumer called the Consumer Services Bureau complaining that his credit file contained inaccuracies and that the credit reporting agency was unwilling to correct them.

When the ministry staff member called the agency, it was revealed that the consumer had not detailed any specific complaints, so the agency was unable to act. The bureau immediately contacted the consumer for more information.

An account, reported as long overdue by a major department store, was, through careful review of records, determined to be the responsibility of the consumer’s ex-spouse. The ministry mediated between the two parties, and the matter was resolved to the consumer’s satisfaction as the agency and the department store agreed that the reference on his credit file could be lifted.

Credit Reporting Statistics 

Inquiries/Complaints:

• Incorrect/inaccurate information on credit file;
• Information not verified and/or not verified in a reasonable timeframe by the credit reporting agency.