Law Talk: Rating your credit
If you have ever tried to finance, rent, or lease anything of substantial value you probably already know the importance of a good credit rating. You could be denied an apartment, a job, a credit card or even insurance if your credit rating is poor. Given the importance of your credit rating, everyone should know who is responsible for your credit record.
Your credit rating and your credit record are managed by consumer-reporting agencies. On request, these agencies prepare investigative reports on your creditworthiness. These reports include personal information such as your name, birth date, and employment history. These reports also include information concerning your credit status such as payment history for an existing debt.
There are two major consumer-reporting agencies in Ontario: Equifax Canada Inc., and Trans Union of Canada. These are the agencies that your potential landlord, employer, or credit grantor go to, to verify your creditworthiness. These are also the agencies that you can contact to check your credit report.
Ontario regulates consumer-reporting agencies through the Consumer Reporting Act (CRA). Under the CRA, your credit report can only be given to a limited group of people and organizations, such as a landlord, employer, a creditor, or a court. In addition, under the CRA, your credit report cannot include certain information. For example, your credit report cannot include information concerning race, ethnic background, or information concerning your criminal record that is over seven years old.
One of the most important provisions in the CRA requires credit-reporting agencies to adopt reasonable procedures to ensure accuracy and fairness to the consumer. This provision gives the consumer a legal right to have inaccurate or incorrect information that is unfavourable to their credit rating removed.
If a consumer-reporting agency is not in compliance with the CRA, contact them and express your concern. If you are unsatisfied by the agency's response, you can file a complaint with the Ministry of Government Services at www.mgs.gov.on.ca.
This column provides legal information only. If you need legal advice, please contact a lawyer, community legal clinic or the Lawyer Referral Service at 1-900-565-4577.
Your credit rating and your credit record are managed by consumer-reporting agencies. On request, these agencies prepare investigative reports on your creditworthiness. These reports include personal information such as your name, birth date, and employment history. These reports also include information concerning your credit status such as payment history for an existing debt.
There are two major consumer-reporting agencies in Ontario: Equifax Canada Inc., and Trans Union of Canada. These are the agencies that your potential landlord, employer, or credit grantor go to, to verify your creditworthiness. These are also the agencies that you can contact to check your credit report.
Ontario regulates consumer-reporting agencies through the Consumer Reporting Act (CRA). Under the CRA, your credit report can only be given to a limited group of people and organizations, such as a landlord, employer, a creditor, or a court. In addition, under the CRA, your credit report cannot include certain information. For example, your credit report cannot include information concerning race, ethnic background, or information concerning your criminal record that is over seven years old.
One of the most important provisions in the CRA requires credit-reporting agencies to adopt reasonable procedures to ensure accuracy and fairness to the consumer. This provision gives the consumer a legal right to have inaccurate or incorrect information that is unfavourable to their credit rating removed.
If a consumer-reporting agency is not in compliance with the CRA, contact them and express your concern. If you are unsatisfied by the agency's response, you can file a complaint with the Ministry of Government Services at www.mgs.gov.on.ca.
This column provides legal information only. If you need legal advice, please contact a lawyer, community legal clinic or the Lawyer Referral Service at 1-900-565-4577.
