La loi vos droits

Consumers - Credit

Your Credit Report

Has a financial institution, business or future landlord ever asked to run a credit check to see if your finances are in good order?

Most people have a good idea of their credit history. But they don’t know what is included in a credit report, who can consult it and how the information gets there in the first place!

In this Infosheet, Éducaloi tries to demystify credit reports.

What is a credit report?

A credit report is a document containing a lot different information about you. It is meant to give a picture of your financial situation.

A credit report includes, among other things, the following:

• Personal information: your name, current address, previous address, date of birth, social insurance number, etc.
  
  
• Credit information: your credit cards, lines of credit, loans and mortgages, any unpaid debts, etc.
  
  
• Banking information: your bank accounts, any cheques you signed that bounced, etc.
  
  
• Public information: any bankruptcies you have declared or court judgments related to your credit, etc.
  
  
• Related information: for example, a note indicating you were the victim of identity theft, or any other information that could explain your report.
  
  
• Information on people or institutions that have consulted your credit report.

Your credit report therefore identifies you, indicates whether you owe money and, most importantly, lets the reader know whether you have a track record of paying off your debts.

Who creates and maintains credit reports?

Credit bureaus, also known as “credit evaluation agencies”, create and maintain credit reports. Equifax and TransUnion are the main credit bureaus in Canada. They collect, update, and make available information about the state of your personal finances.

The services offered by credit bureaus are very useful to their clients. These clients include credit unions and banks, financing and leasing corporations, credit card companies, service providers and retailers.

Who can put information in my credit report?

Businesses and banking institutions regularly provide credit bureaus with information about you. But they must get your permission to do this. Often, the contracts you sign with these companies state that, by signing, you are giving permission.

For example, your credit card company can report to a credit bureau the date you received your credit card, how regularly you pay your bill, whether you pay on time and whether you’ve gone over your credit limit. Or the retailer that sold you the home theatre system on credit could inform a credit bureau that you missed your last payment.

However, when your file has been sent to a debt collection agency, businesses and banking institutions do not need your permission to record information in your credit report. Also, permission is not required to put information that is public in your credit report. For example, credit bureaus can consult the public registries in courthouses to see whether legal claims have been filed or judgments made against you.

Who has a right to consult my credit report?

Only people who have your permission can consult it. Normally, people want to see your credit report when you are trying to get credit (a loan, for example), when someone wants to be paid money you owe, or when you are trying to rent an apartment or get a job or insurance.

For example, a bank will ask for permission to do a credit check when you apply for a loan.

Another example: a landlord might ask to consult your credit report when you apply to rent an apartment.

You are never obliged to let someone see your credit report.

If someone refuses to sell or rent you something or provide a service because you did not agree to a credit check, and you felt the check was unnecessary, you can file a complaint with the Commission d'accès à l'information.  (http://www.cai.gouv.qc.ca/index-en.html)

Can I consult my credit report?

Yes, you can always consult records that have information about you.

A request to a credit bureau to see your report must be made in writing. The credit bureau must reply within 30 days of receiving your request.

What do I do if I notice errors or want to add comments?

You can send the credit bureau a written request to make the corrections. Start by calling the credit bureau to find out about its procedure for making corrections. The bureau may ask you to fill out a form and send it in by mail. If you send it by registered mail, you will have proof the credit bureau received it.

Within 30 days of getting your request, the credit bureau must contact the company that reported the information to see if there was an error. If the company insists that the information is correct but you still disagree, you can send a brief explanation to the credit bureau and this explanation will be added to your credit report.

If the credit bureau refuses to make corrections or fails to reply to you within 30 days of receiving your request, you can ask the Commission d'accès à l'information to review the matter. This request is called an application for an “examination of the disagreement”. You must file this application with the Commission within 30 days of the credit bureau’s refusal to make corrections or the end of the time limit the bureau had to reply.

The Commission will decide if your request is justified. If it is, it can order the credit bureau to make the necessary corrections.

Some of the information in my report is out of date. Can I ask the bureau to remove it?

Yes. You must send a written request to the credit bureau asking it to remove the information. In your request, you should explain your reasons (e.g., you think a reference to a court decision ordering you to pay money is no longer relevant because you have since paid the amount in full). You should also provide documents in support of your request, if there are any.

Again, if the credit bureau denies your request or fails to reply within 30 days of receiving it, you can apply for an “examination of a disagreement” with the Commission d'accès à l'information. You must file this application within 30 days of the bureau’s refusal of your request or the end of the time limit the bureau had to reply.

Is there time limit on how long a credit bureau can keep certain information, such as a declaration of bankruptcy?

Legally, there is no time limit.

In practice, though, some information is not kept forever. For example, a credit bureau will usually keep information on your credit history for 6 years after the last time something was recorded in your credit report. However, some information is kept longer. For example, information about a second bankruptcy could be kept in your report for up to 14 years.

Useful Links :

1. Equifax Canada, Consumer Information Centre  [http://www.equifax.com/EFX_Canada/consumer_information_centre/ownreport_e.html]
2. TransUnion Credit Bureau   [http://www.transunion.ca/]