The Link Between Credit Reporting and Limitation Periods

Introduction

Here we explore the brief history of the Limitations Act, 2002, and the Consumer Reporting Act, R.S.O. 1990, c. C.33. Specifically we will examine how the Conservative government made changes in 2001 that unfairly impacted middle-class and low-income people with respect to modern-day credit reporting practices.

The Current Law

Laws tend to be written in the negative, meaning laws state what you cannot do as opposed to what you are permitted to do. The purpose of this is generally though to grant flexibility in limiting unforeseen consequences when drafting new legislation.

The authority for what is not be posted within a consumer credit report is found in section 9 (3) of the Consumer Reporting Act, R.S.O. 1990, c. C.33 which states:

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;

(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. R.S.O. 1990, c. C.33, s. 9 (3); 2002, c. 24, Sched. B, s. 29; 2004, c. 19, s. 9 (1).

Now let's look at the prior version of the Consumer Reporting Act, R.S.O. 1990, c. C.33before the introduction of the new Limitations Act, 2002, S.O. 2002, c. 24, Sched. B, introduced by the Progressive Conservative Party of Ontario.