Receivable/Accounts - Information for Credit and Collection Issues

Tuesday, June 26, 2012

How Long Is A Debt Good For? Part VI: Canada Overview


Our articles reviewing the Canadian provincial laws surrounding limitations on legal action and the credit bureau recently came to the attention of the Credit Institute of Canada. They asked for a summary of the rules across Canada, and we were happy to provide this.



We would like to thank the Credit Institute of Canada for publishing our article in the newest issue of To Your Credit, which can be found here:


http://www.creditedu.org/Files/EmailTemplate_Images/12_Summer_To_Your_Credit/newsletter_summer_12_email.htm



Formal and Informal Credit Reporting Limits


Interestingly, a number of provinces do not have legislation determining the limitation for reporting outstanding debts to the credit bureau. However, the major credit reporting companies in Canada, Trans Union and Equifax, have published unified time limits that they will adhere to for various credit items. The Financial Consumer Agency of Canada have published these limits in their guide, Understanding Your Credit Report And Credit Score.


These limits are:

Trans Union

Credit transactions (trade items) - 6 yrs
Judgments - 6 yrs (7 yrs in ON, QC, NB, NL, 10 yrs in PE)
Collections - 6 yrs
Secured Loans - 5 yrs
Bankruptcy - 6 yrs (7 yrs in ON, QC, NB, PE, and NL)
Registered Consumer Proposal, OPD - 3 yrs
Credit Counselling - 2 yrs

Equifax
Credit transactions (trade items) - 6 yrs
Judgments - 6 yrs (7-10 yrs PE)
Collections - 6 yrs
Secured Loans - 6 yrs
Bankruptcy - 6 yrs (7 yrs in ON, QC, NB, PE, and NL)
Registered Consumer Proposal, OPD - 3 yrs
Credit Counselling - 3 yrs


The FCAC’s guide can be found here:


http://www.fcac-acfc.gc.ca/eng/resources/publications/budgetmoneymgmt/creditreportscore/PDF/CreditReportScore-eng.pdf




Conclusion


If you are interested in knowing your rights, as either a creditor or a consumer, by all means contact my office for further information. My office number at Kingston Data and Credit is 226-444-5695.


Blair DeMarco-Wettlaufer
Kingston Data and Credit
Cambridge, Ontario
bwettlaufer@kingstondc.com