Ontario Credit Bureaus - Ontario Debt Collection. Free Credit Report.


Free Credit Report: Click here.

  Purchase your Credit Report online for $15.50: Click here.

 

NEWS FLASH -  Protection for Ontario residents effective January 1, 2008

 

 

Credit reporting agencies or credit bureaus, collect information about consumers' financial affairs and sell that information to their business members, such as credit grantors, employers and insurance companies.  The credit bureaus charge annual fees as well as a fee for each credit report requested by members.

In Canada, there are three major credit bureaus: Equifax Canada, NCB Inc. and TransUnion Canada

Most national and international creditors, such as banks and department stores, are registered with all bureaus, so the chances are good that whatever shows up on one credit report will also appear on the others. This  makes it simple for you to check your history. You really need to check only one bureau's records.
 
   

PwC Tip

The consumer has a right to place a 100 word statement (50 recommended) on the credit bureau file, to be given to anyone who obtains a future report.

 

Credit bureaus obtain their information from four major sources:

 1. Consumers supply information, primarily from filling out application forms for credit.

 2. Public records provide information on such matters as bankruptcies, Court judgments, foreclosures and agreements registered with Provincial authorities.

 3. The major credit grantors and collection agencies send their credit files electronically to the credit bureau every month, resulting in files that include the account number, outstanding balance, and a nine point scale indicating whether a payment was made on time or late.

4. The Office of the Superintendent of Bankruptcy notifies credit bureaus when a bankruptcy or proposal is filed and again when the bankruptcy is discharged and the proposal is completed.

 

The nine point Credit Rating Scale is as follows:

  •   R0    Too new to rate; approved but not used;

  •   R1     Pays (or paid) within 30 days of billing; pays account as agreed;

  •   R2     Pays (or paid) in more than 30 days, but not more than 60 days, or one payment past due;

  •   R3     Pays (or paid) in more than 60 days, but not more than 90 days, or two payments past due;

  •   R4     Pays (or paid) in more than 90 days, but not more than 120 days, or three or more payments   past due;

  •   R5     Account is at least 120 days overdue, but is not yet rated 9;

  •   R6    (Code 6 does not exist.);

  •   R7     Making regular payments under a consolidation order or similar arrangement;

  •   R8     Repossession (indicate if it is a voluntary return of merchandise by the consumer);

  •   R9     Bad debt; placed for collection; skip.

 

The FICO® score

The FICO® score, developed by Fair, Isaac (the pioneer in credit scoring) is a number between 300 and 850 that lenders use to determine your credit rating. A FICO® score is a snapshot of your credit rating at a particular point in time. The higher your credit score the more likely you are to be approved for loans and receive favorable rates.

 

The Credit Bureau's policy regarding bankruptcy, proposals and other information is:

CREDIT INQUIRIES TO THE FILE: An Inquiry made by a Creditor will automatically purge three (3) years from the date of the inquiry. The system will keep a minimum of five (5) inquiries.

CREDIT HISTORY AND BANKING INFORMATION: A credit transaction will automatically purge from the system six (6) years from the date of last activity.
All banking information (checking or saving account) will automatically purge from the system six (6) years from the date of registration.

VOLUNTARY DEPOSIT - ORDERLY PAYMENT OF DEBTS, CREDIT COUNSELING: When voluntary deposit – OPD – credit counseling is paid, it will automatically purge from the system three (3) years from the date paid.

REGISTERED CONSUMER PROPOSAL: When a registered consumer proposal is paid, it will automatically purge three (3) years from the date paid.

BANKRUPTCY: A bankruptcy automatically purges six (6) years from the date of discharge in the case of a single bankruptcy. If the consumer declares several bankruptcies, the system will keep each bankruptcy for fourteen (14) years from the date of each discharge. All accounts included in a bankruptcy remain on file indicating “included in bankruptcy” and will purge six (6) years from the date of last activity.

JUDGMENTS, SEIZURE OF MOVABLE/IMMOVABLE, GARNISHMENT OF WAGES: The above will automatically purge from the system six (6) years from the date filed.

COLLECTION ACCOUNTS: A collection account under public records will automatically purge from the system six (6) years from the date of last activity.

SECURED LOANS: A secured loan will automatically purge from the system six (6) years from the date filed.

(Exception: P.E.I. Public Records: seven (7) to ten (10) years.)

 

Reporting Standards and Consumer Protection

Credit Bureaus share information within a system known as the National Equifax Network. The network observes strict standards governing reporting of adverse information and purging of credit reporting records. The credit bureau must investigate and use its best efforts to confirm disputed negative information.  A consumer has a right to full disclosure of the content and the source of any information on his or her file. The Registrar of Credit Reporting Agencies recognizes that all complainants consider their issues to be very serious. For that reason the Credit Reporting Branch insists that credit reporting agencies and creditors provide prompt and complete reports to the consumer about adverse credit information.
 

 

Debt Collection

Debt collection is provincial law. The law attempts to strike a balance between giving creditors an opportunity to collect the money that is owed to them and preserving the debtors' rights not to be unduly harassed and to be treated with dignity. Collection efforts can be persistent but collectors cannot phone at unreasonable hours or jeopardize the debtor's job by interrupting him or her at work.

 

Unreasonable Collection Practices

The Ontario Collection Agencies Act sets out a code of ethics for Ontario's collection agencies.

The regulations forbid collection agencies from:

  • trying to collect a debt without first notifying the debtor in writing, at the debtor's last known address, that they have been assigned to the account;

  • recommending or initiating legal or court action on the collection of a debt without first notifying the debtor and obtaining the creditor's written permission;

  • making telephone or personal calls of such a nature or frequency to constitute harassment of the debtor or the debtor's family;

  • calling to collect a debt on a Sunday, statutory holiday or before 7 a.m. and after 9 p.m.
  • implying or giving false or misleading information to any person that could damage the debtor or debtor's family;

  • demanding payment of a debt without giving the name and authority of the creditor, the collector and the balance of the money owed;

  • continuing to demand payment from a person who claims not to owe the money, unless the collector has tried every way to ensure the person actually is the debtor;

  • taking over a debt from a creditor without first advising the debtor.

Also:

Collectors are not, generally, allowed to contact a debtor's friends, employer, relatives or neighbors for information other than the debtor's telephone number or address. The only exceptions are contacting a person about a debt they've guaranteed to pay for the debtor or contacting an employer about payment connected with a wage assignment or a court order, or to confirm employment.

 

Debt Collection Complaints

If you believe any of the above regulations have been breached by a collection agency, contact the head of the agency. If you're still not satisfied, contact the Ontario Ministry of Government Services at (416) 326-8555 or 1-800-268-1142.

 

Protection for Ontario residents effective January 1, 2008 (See Bill 152).

Effective January 1, 2008 a consumer will be able to require a consumer reporting agency to include an alert in the consumer’s file warning persons to verify the identity of any person purporting to be the consumer.  The consumer reporting agency will be required to give the alert to every person to whom information from the file is disclosed.  If a person receives an alert in connection with certain transactions, the person who received the alert will be required to take reasonable steps to verify that the person involved in the transaction is the consumer.

If a consurmer wants this protection he or she is required to advise the credit bureau.

Equifax has advised that if a consumer requests the alert notification they will post the following in the Consumer Statement segment:

**** WARNING ****ALERT TO VERIFY CONSUMER'S IDENTITY - PLEASE CONTACT CONSUMER AT (000) - 000-0000 BEFORE EXTENDING CREDIT

 

 

 

 

 

 

Site design by http://ontario.bankruptcycanada.com/. Copyright © 2006 - 2007.