Law Talk: The ins and outs of credit: Introduction to consumer reporting agencies
Have you ever wondered why you were
turned down for that credit card or new car
loan? Your credit information as reported by
a credit reporting agency is the likely culprit.
This article will introduce you to credit
reporting in Ontario.
What is a consumer reporting agency?
A consumer reporting agency prepares an in-depth report on your creditworthiness, usually for the use of a third party. They collect this information through credit-grantors and other publically-available sources. Consumer reporting agencies are governed by Ontario's Consumer Reporting Act (CRA), which regulates what information they can report about you, and to whom. The CRA also protects you against the use of incorrect and outdated information about your credit history. The largest reporting agencies in Ontario are TransUnion and Equifax.
What information is included in my credit report?
The moment you get your first credit card or take out a loan, your credit file is created. It includes information about any and all credit advanced to you and the balance of each, and whether you are making your payments on time. Your credit report shows whether you pay your other bills, such as your rent and utilities, on time. It contains personal information such as your name, age and occupation; current and previous places of residence; marital status and your spouse's name; your dependents; your education, professional qualifications and employment history; your estimated income, outstanding debts, and assets; and your character and reputation, health, and physical or other personal characteristics. Your credit report may not include unfavourable information, unless it is corroborated; judgments, bankruptcies, information about debt collection, payment or nonpayment of fines or taxes, or criminal convictions, if any of these are more than seven years old; criminal convictions that have been discharged or pardoned; criminal charges that have been withdrawn, dismissed, or set aside; and information regarding race, colour, creed, sex, ancestry, ethnic origin or political affiliation.
Who can see my credit report?
A consumer reporting agency can only release your credit report with your written permission. Usually when you apply for credit you are asked to fill out an application form that includes written consent, giving the creditor permission to check your credit report. Every time an inquiry is made about your credit, a note is made in the file and is kept for three years. This allows you to see who has requested your credit report and when. Consumer reporting information is most often requested by potential landlords, employers, insurance companies and grantors of credit cards, mortgages and bank loans. Creditors use this information to determine if you pay your debts and how risky it would be to extend further credit to you. If a creditor denies a benefit or increases fees due to your credit history, they must inform you this was the reason.
How can I see my credit report and what should I do if it is incorrect?
Under the CRA, if you request a mailed copy of your credit report, a consumer reporting agency must provide it free of charge. The report must contain all information in the agency's files pertaining to you at the time of your request, and all sources of this information. Credit reporting agencies must make reasonable efforts to verify unfavorable credit information. If you dispute information based on correctness or accuracy, the reporting agencies must confirm it as true, correct it, or delete it from the record. If the credit reporting agency refuses to correct inaccurate information, you can complain to the Ministry of Consumer Services, which will investigate the matter. The Ministry can order that credit information be amended or deleted, and prosecute agencies for violations of the CRA.
To obtain a free copy of your credit report, contact Equifax Canada at equifax.ca or 1-800-465-7166, or Trans Union Canada at tuc.ca or 1-800-663-9980. To make a complaint regarding a credit reporting agency, contact the Ministry of Consumer Services at 1-800-889-9768 or visit their website at tinyurl.com/minconsumerservices. In addition, you can find more information about consumer protection topics at any time in a series of Community Law School webinars archived online at yourlegalrights.on.ca/training-topic/consumer- law. Be empowered, and stay tuned.
This column is brought to you by Community Law School (Sarnia-Lambton) Inc., and Community Legal Services and Pro Bono Students Canada at Western University, with funding support from the Law Foundation of Ontario. It provides legal information only. The information is accurate as of the date of publication. Laws change frequently so we caution readers from relying on this information if some time has passed since publication. If you need specific legal advice please contact a lawyer, your community legal clinic, Justice Net at 1-866-919-3219 or the Law Society Referral Service at 1-800-268-8326.
Editorial opinions or comments expressed in this online edition of Interrobang newspaper reflect the views of the writer and are not those of the Interrobang or the Fanshawe Student Union. The Interrobang is published weekly by the Fanshawe Student Union at 1001 Fanshawe College Blvd., P.O. Box 7005, London, Ontario, N5Y 5R6 and distributed through the Fanshawe College community. Letters to the editor are welcome. All letters are subject to editing and should be emailed. All letters must be accompanied by contact information. Letters can also be submitted online by clicking here.
What is a consumer reporting agency?
A consumer reporting agency prepares an in-depth report on your creditworthiness, usually for the use of a third party. They collect this information through credit-grantors and other publically-available sources. Consumer reporting agencies are governed by Ontario's Consumer Reporting Act (CRA), which regulates what information they can report about you, and to whom. The CRA also protects you against the use of incorrect and outdated information about your credit history. The largest reporting agencies in Ontario are TransUnion and Equifax.
What information is included in my credit report?
The moment you get your first credit card or take out a loan, your credit file is created. It includes information about any and all credit advanced to you and the balance of each, and whether you are making your payments on time. Your credit report shows whether you pay your other bills, such as your rent and utilities, on time. It contains personal information such as your name, age and occupation; current and previous places of residence; marital status and your spouse's name; your dependents; your education, professional qualifications and employment history; your estimated income, outstanding debts, and assets; and your character and reputation, health, and physical or other personal characteristics. Your credit report may not include unfavourable information, unless it is corroborated; judgments, bankruptcies, information about debt collection, payment or nonpayment of fines or taxes, or criminal convictions, if any of these are more than seven years old; criminal convictions that have been discharged or pardoned; criminal charges that have been withdrawn, dismissed, or set aside; and information regarding race, colour, creed, sex, ancestry, ethnic origin or political affiliation.
Who can see my credit report?
A consumer reporting agency can only release your credit report with your written permission. Usually when you apply for credit you are asked to fill out an application form that includes written consent, giving the creditor permission to check your credit report. Every time an inquiry is made about your credit, a note is made in the file and is kept for three years. This allows you to see who has requested your credit report and when. Consumer reporting information is most often requested by potential landlords, employers, insurance companies and grantors of credit cards, mortgages and bank loans. Creditors use this information to determine if you pay your debts and how risky it would be to extend further credit to you. If a creditor denies a benefit or increases fees due to your credit history, they must inform you this was the reason.
How can I see my credit report and what should I do if it is incorrect?
Under the CRA, if you request a mailed copy of your credit report, a consumer reporting agency must provide it free of charge. The report must contain all information in the agency's files pertaining to you at the time of your request, and all sources of this information. Credit reporting agencies must make reasonable efforts to verify unfavorable credit information. If you dispute information based on correctness or accuracy, the reporting agencies must confirm it as true, correct it, or delete it from the record. If the credit reporting agency refuses to correct inaccurate information, you can complain to the Ministry of Consumer Services, which will investigate the matter. The Ministry can order that credit information be amended or deleted, and prosecute agencies for violations of the CRA.
To obtain a free copy of your credit report, contact Equifax Canada at equifax.ca or 1-800-465-7166, or Trans Union Canada at tuc.ca or 1-800-663-9980. To make a complaint regarding a credit reporting agency, contact the Ministry of Consumer Services at 1-800-889-9768 or visit their website at tinyurl.com/minconsumerservices. In addition, you can find more information about consumer protection topics at any time in a series of Community Law School webinars archived online at yourlegalrights.on.ca/training-topic/consumer- law. Be empowered, and stay tuned.
This column is brought to you by Community Law School (Sarnia-Lambton) Inc., and Community Legal Services and Pro Bono Students Canada at Western University, with funding support from the Law Foundation of Ontario. It provides legal information only. The information is accurate as of the date of publication. Laws change frequently so we caution readers from relying on this information if some time has passed since publication. If you need specific legal advice please contact a lawyer, your community legal clinic, Justice Net at 1-866-919-3219 or the Law Society Referral Service at 1-800-268-8326.
Editorial opinions or comments expressed in this online edition of Interrobang newspaper reflect the views of the writer and are not those of the Interrobang or the Fanshawe Student Union. The Interrobang is published weekly by the Fanshawe Student Union at 1001 Fanshawe College Blvd., P.O. Box 7005, London, Ontario, N5Y 5R6 and distributed through the Fanshawe College community. Letters to the editor are welcome. All letters are subject to editing and should be emailed. All letters must be accompanied by contact information. Letters can also be submitted online by clicking here.
