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
A collections company called my work and threatened to sue me for a 10 year old debt that was dealt with through Debt Free Canada, my boss have given warning about the calls. What are my rights? Can the agency do this given the S.O.L in Ontario is 2 years?
ReplyDeleteThere are a few things wrong with this scenario.
ReplyDeleteThe statute of limitation in Ontario is two years -- if you made a partial payment within that time that would reset the time limet, but if you arranged for a settlement with Debt Free Canada, did you receive a letter of release from the agency or the creditor?
You can send a registered letter to the agency demanding no further calls to your work (or home) and to correspond only in writing -- they are required to comply with this request.
If you ened any further advice, by all means let me know.