Free Credit Report!Get yours today!-Only $9.95The ads are all over the internet.Think twice.Anyone who has borrowed money, paid utility bills etc, will have a credit record; in fact maybe several since there are multiple Credit Reporting Agencies in Canada.
Credit Reporting Agencies are not designed to serve the consumer, they are set up to serve the businesses who use them and they pay for that service.So as the consumer, you are having data gathered about you and stored for access by these companies who need to check your credit history.You have no say in the matter.Even privacy laws are subverted because when you sign a contract you agree to this exchange of information.
As consumers, we are entitled to know what the information on our credit reports states so we can request a report.It will require a registered letter with appropriate identification and a valid handwritten signature.Your report will be generated and mailed to you.You will have to do this for each agency.
If you find errors on your report it is up to you to prove these are errors.You must show valid receipts or transactional records of the questionable items then wait while the credit agency checks it out with the company that made the report.So, in this light, you are fighting both the agency and their customer who was your supplier of goods or services.You have to prove your position beyond any doubt.Making a verbal or written objection is not enough.If you have proven your case your record will be changed.It doesn’t often happen but mistakes can happen.
However, it isn't always that simple to get a change.In high profile court case, one of Canada’s premier credit agencies refused to alter their records and the consumer sued them and the supplier.It was only after a court order was issued that the credit agency finally complied.Normally a court case is not required and it perplexes this writer why it would have gone this far considering that the evidence for the plaintiff (the consumer) was overwhelmingly in his favour.The problem was that this man’s credit rating was reduced to the worst possible level when in fact he was a good risk.
When any consumer begins any kind of credit account whether it is for rent, a credit card, bank loan, utilities or other means, a credit report is begun.If bills are not paid on time or go 30 days past due, a credit report is made and it goes on to your credit record thus affecting your rating.Each time an inquiry is made into your credit history it too shows up on your ratings.If a name change is filed for marriage or other reasons, this too is reflected on your rating.
In short, if you keep your bills paid on time and limit the number of inquiries into your credit rating, your rating will always be good.As long as there is no reason to make a report, you should never have a problem.Even so, it doesn’t hurt to check it yourself every couple of years just to make sure that the information is accurate.
A nine point scale is used to rate each account.It 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 Credit Reporting Acts Protect Several Rights of Consumers:
vThe Act applies only to consumer transactions.
vReports may be given to a person seeking information only for the purpose of: extending credit or collecting a debt; a tenancy inquiry employment or insurance verification under authority granted by a government statute otherwise, as a direct business requirement.
vBefore a person may obtain a report, she or he must: have the consumer's consent in writing, or notify the consumer by mailing a notice postmarked at least three days before obtaining the report.
vIf a consumer is denied credit or has an increased cost as a result of information obtained in a credit report, the person must be notified promptly by the person denying credit.
vThe 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.
vA consumer has a right to see the file and has a right to receive a copy of any report.
It is your credit and your reputation; protect them!
Below are the three major credit bureaus in Canada and links to their websites.