Credit Reporting

Consumer Reporting Act, R.S.O. 1990, c. C.33

9 (1) Every consumer reporting agency shall adopt all procedures reasonable for ensuring accuracy and fairness in the contents of its consumer reports. R.S.O. 1990, c. C.33, s. 9 (1).

(2) A consumer reporting agency shall not report,

(a) any information that is not stored in a form capable of being produced under section 12;

(b) any information that is not extracted from information appearing in files stored or collected in a repository located in Canada regardless of whether or not the information was obtained from a source outside Canada, except where the consumer report is in writing and contains the substance of any prior information orally acquired that conforms to the requirements of this Act.

Idem

(3) A consumer reporting agency shall not include in a consumer report,

(a) any credit information based on evidence that is not the best evidence reasonably available;

(b) any unfavourable personal information unless it has made reasonable efforts to corroborate the evidence on which the personal information is based, and the lack of corroboration is noted with and accompanies the information;

(c) information as to judgments after seven years after the judgment was given, unless the creditor or the creditor’s agent confirms that it remains unpaid in whole or in part, and such confirmation appears in the file;

(d) information as to any judgment against the consumer unless mention is made of the name and, where available, the address of the judgment creditor or the creditor’s agent as given at the date of entry of the judgment and the amount;

(e) information as to the bankruptcy of the consumer after seven years from the date of the discharge except where the consumer has been bankrupt more than once;

(f) information regarding any debt or collection if,

(i) more than seven years have elapsed since the date of last payment on the debt or collection, or

(ii) where no payment has been made, more than seven years have elapsed since the date on which the default in payment or the matter giving rise to the collection occurred, unless the creditor or the creditor’s agent confirms that the debt or collection is not barred by statute and the confirmation appears in the file;

(g) information as to the payment or non-payment of taxes or lawfully imposed fines after seven years;

(h) information as to convictions for crimes, after seven years from the date of conviction or, where the conviction resulted in imprisonment, from the date of release or parole, provided information as to convictions for crimes shall not be reported if at any time it is learned that after a conviction an absolute discharge or a full pardon has been granted;

(i) information regarding writs or actions that are more than seven years old or writs that were issued or actions commenced against the consumer more than twelve months prior to the making of the report unless the consumer reporting agency has ascertained the current status of the writ or action and has a record of this on file;

(j) information regarding any criminal charges against the consumer where the charges have been dismissed, set aside or withdrawn;

(k) any other adverse item of information where more than seven years have expired since the information was acquired or last reaffirmed;

(l) information as to race, creed, colour, sex, ancestry, ethnic origin, or political affiliation; or

(m) any information given orally in the consumer report unless the content of the oral report is recorded in the file.

22 No person shall knowingly supply false or misleading information to another who is engaged in making a consumer report.

Consumer Reporting Act, RSO 1990, c C.33 (Vol. 1990: Iss. 2, Article 24.)

9. (3) A consumer reporting agency shall not include in a consumer report,

...

(f) information regarding any judgments, collections or debts that on their face are statute barred unless it is accompanied by evidence appearing in the file that recovery is not barred by the expiration of a limitation period;

Bill 70, Ministry of Consumer and Business Services Statute Law Amendment Act, 2004

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Consumer Reporting Act

9. (1) Clause 9 (3) (f) of the Consumer Reporting Act, as re-enacted by the Statutes of Ontario, 2002, chapter 24, Schedule B, section 29, is repealed and the following substituted:

(f) information regarding any debt or collection if,

(i) more than seven years have elapsed since the date of last payment on the debt or collection, or

(ii) where no payment has been made, more than seven years have elapsed since the date on which the default in payment or the matter giving rise to the collection occurred, unless the creditor or the creditor's agent confirms that the debt or collection is not barred by statute and the confirmation appears in the file;

Harvey v Capital One Bank, 2019 CanLII 69716 (ON SCSM)

[42] I agree with Capital One’s submission that if Mr. Harvey’s argument were correct, the purpose of the Consumer Reporting Act, to advise other potential creditors of an individual’s credit worthiness, would be completely undermined. The ramifications to businesses extending credit to others could be deleterious if such information was unavailable, simply because the creditor did not commence legal proceedings for payment of the debt prior to the two year limitation period. Many consumer debts do not justify the time or expense of legal proceedings. Nevertheless, an individual’s failure or refusal to pay their legitimate debts is important information to other creditors, to whom that same debtor has sought more credit. The extinguishment of the right to report such debt by operation of the Limitations Act, as posited by Mr. Harvey, allows the debtor an unfair advantage in our credit-based society.

[43] What Mr. Harvey fails to appreciate is that Capital One is simply reporting the debt was never paid. This reporting under the CRA is not intended to be a debt enforcement method and differs from the statutory collection process referred to in Markevich. As a result, the reporting of his outstanding debt to the credit reporting agency is not defamatory.

Consumer Reporting Act, RSO 1980

9.—(1) Every consumer reporting agency shall adopt all procedures reasonable for ensuring accuracy and fairness in the contents of its consumer reports.

...

(3) A consumer reporting agency shall not include in a consumer report,

...

(f) information regarding any judgments, collections or debts that on their face are statute barred unless it is accompanied by evidence appearing in the file that recovery is not barred by the expiration of a limitation period;

Haskett v. Equifax Canada Inc., 2003 CanLII 32896 (ON CA)

[5] The appellant's claim is against two Canadian credit reporting agencies, Equifax Canada Inc. and Trans Union of Canada Inc., and their respective American parent companies, Equifax Inc. and Trans Union LLC. The appellant claims that he has been denied credit from credit grantors in Canada because the two Canadian respondent credit reporting agencies "have improperly and illegally included information in [the appellant's] credit report which they are not entitled to report and which is inaccurate". It is because of these actions by the respondents that the appellant has not been freed of the consequences of his bankruptcy, notwithstanding his discharge. The impugned information is of two related types: (1) pre- bankruptcy debts that are released as a consequence of the discharge (pursuant to s. 178(2) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3); and (2) accruing interest on those debts.

[6] The reason this reporting is alleged to be illegal is because of s. 9(3)(a) and (f) of the Consumer Reporting Act, R.S.O. 1990, c. C.33 which provides:

9(3) A consumer reporting agency shall not include in a consumer report,

(a) any credit information based on evidence that is not the best evidence reasonably available;

. . . . .

(f) information regarding any judgments, collections or debts that on their face are statute barred unless it is accompanied by evidence appearing in the file that recovery is not barred by the expiration of a limitation period;

Limitations Act, R.S.O. 1990, c. L.15(Repealed)

By amendment of S.O. 2002, chapter 24, section 26, Parts II and III of the Limitations Act (R.S.O. 1990, chapter L.15) were repealed. The remaining portion of the Act (the definitions and Part I) dealt exclusively with real property limitations. To reflect this narrowed scope, the Act was renamed the Real Property Limitations Act. A new Act, the Limitations Act, 2002, was enacted to deal with limitation periods other than those affecting real property.

45.(1)The following actions shall be commenced within and not after the times respectively hereinafter mentioned,

(a) an action for rent, upon an indenture of demise;

(b) an action upon a bond, or other specialty, except upon a covenant contained in an indenture of mortgage made on or after the 1st day of July, 1894;

(c) an action upon a judgment or recognizance,

within twenty years after the cause of action arose,

(d) an action upon an award where the submission is not by specialty;

(e) an action for an escape;

(f) an action for money levied on execution; or

(g) an action for trespass to goods or land, simple contract or debt grounded upon any lending or contract without specialty, debt for arrears of rent, detinue, replevin or upon the case other than for slander,

within six years after the cause of action arose,

(h) an action for a penalty, damages, or a sum of money given by any statute to the Crown or the party aggrieved, within two years after the cause of action arose;

(i) an action upon the case for words, within two years after the words spoken;

(j) an action for assault, battery, wounding or imprisonment, within four years after the cause of action arose;

(k) an action upon a covenant contained in an indenture of mortgage or any other instrument made on or after the 1st day of July, 1894, to repay the whole or part of any money secured by a mortgage, within ten years after the cause of action arose or within ten years after the date upon which the person liable on the covenant conveyed or transferred the person’s interest in the mortgaged lands, whichever is later in point of time;

(l) an action by a mortgagee against a grantee of the equity of redemption under section 20 of the Mortgages Act, within ten years after the cause of action arose;

(m) an action for a penalty imposed by any statute brought by any informer suing for the informer alone, or for the Crown as well, or by any person authorized to sue for the same, not being the person aggrieved, within one year after the cause of action arose.