Credit Reporting Laws in Canada

In Canada, there are two major credit reporting agencies allowed by law to collect credit information about those borrowing from banks, credit card companies and other financial institutions: Equifax Canada and TransUnion Canada. These agencies provide information on borrowers to potential lenders to help them determine the creditworthiness of the individual. Although credit reporting legislation can differ from province to province, consumers have some basic rights under credit reporting legislation in Canada.

Data Restrictions

Credit bureaus in Canada can only collect and distribute certain information on borrowers. They can list outstanding debts along with the payment history reported by the creditors. They can also list your current address and employer. Credit bureaus cannot report information about your marital or family status or information about your children.

Credit History

In Canada, the length of time that a credit bureau may retain credit history that can affect a credit score depends on the province. Most items, such as payment history, judgments, and collections, remain on file for six years, but some provinces allow for longer retention periods. All credit history eventually falls off of the credit report. Credit scores in Canada give more weight to more recent transaction history.

Erroneous Information

Credit bureaus must, by law, give consumers the right to fix any information on their report that is incorrect. This is one reason why it is critical that consumers review their credit bureau reports at least annually. Consumers in Canada must send a letter to the credit bureau along with any documentation showing the correct information.

Adding a Consumer Statement

Consumers have the right to have explanatory notes appended to their credit bureau reports. This can be helpful in situations where a negative mark is true but there are underlying circumstances that potential loan agencies should take into consideration. The credit bureau is required by law to attach consumer statements to all future reports issued.

Viewing a Credit Bureau Report

In Canada, credit bureaus must provide a copy of a credit report to the consumer for free upon written request at least annually. This allows consumers to check on their reports and ensure that the information is up-to-date and accurate. Credit bureaus are not required to provide consumers with their proprietary credit score, but both major credit bureaus will provide that information for a fee.