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,

....

(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;

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.

Changes to the Limitations Act

• Justice Statute Law Amendment Act, 2002

Changes to the Consumer Reporting Acts

• Consumer Reporting Act, RSO 1990
• Consumer Reporting Act, RSO 1980
• Ministry of Consumer and Commercial Relations Act, RSO 1980, c 274
• Table of Proclamations: R.S.O. 1970; 1971; 1971 (2nd Session); 1972; 1973; 1974; 1975; 1975 (2nd Session); 1976; 1976 (2nd Session); 1977; 1978; 1979; 1980
• CONSUMER REPORTING ACT: 1973, c. 97 (2nd July, 1974).
• Creditors Relief Act, RSO 1970, c 97
• The Consumer Reporting Act, 1973, SO 1973, c 97 - Royal Assent: July 2, 1974

The Consumer Reporting Act, 1973, SO 1973, c 97

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;

Consumer Reporting Act, RSO 1980, c 89

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;

Consumer Reporting Act, RSO 1990, c C.33

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;

Consumer Reporting Act, R.S.O. 1990, c. C.33 - for the period March 31, 2007 to March 31, 2007.

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).

...

(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;

Consumer Reporting Act, R.S.O. 1990, c. C.33 - for the period January 1, 2004 to November 29, 2004.

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

...

(f) information regarding any collection or debt after seven years following the commencement of the debt obligation, unless the creditor or the creditor’s agent confirms that the debt obligation is not barred under the Limitations Act, 2002 and the confirmation appears in the file;

Changes

• Ministry of Consumer and Business Services Statute Law Amendment Act, 2004, S.O. 2004, c. 19 - Bill 70

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;

The bill sponsor was the Hon. Jim Watson, Minister of Consumer and Business Services, the bill was held from 38th Parliament, 1st Session.