Credit Reporting Acts Protect Several Rights of Consumers:

• The Act applies only to consumer transactions.
• Reports may be given to a person seeking information only for the purpose of: extending credit or collecting a debt; a tenancy inquiry employment or insurance verification under authority granted by a government statute otherwise, as a direct business requirement.
• Before a person may obtain a report, she or he must: have the consumer's consent in writing, or notify the consumer by mailing a notice postmarked at least three days before obtaining the report.
• If a consumer is denied credit or has an increased cost as a result of information obtained in a credit report, the person must be notified promptly by the person denying credit.
• The consumer has a right to place a 100 word statement (50 recommended) on the credit bureau file, to be given to anyone who obtains a future report.
• A consumer has a right to see the file and has a right to receive a copy of any report.

Credit bureaus obtain their information from three major sources:

• Consumers supply information, primarily from filling out application forms for credit.
• Public records provide information on such matters as bankruptcies, Court judgements, foreclosures and agreements registered with Provincial authorities.
• The major credit grantors and collection agencies send their credit files electronically to the credit bureau every month, resulting in files that include the account number, outstanding balance, and a nine point scale indicating whether a payment was made on time or late.

The nine point scale is as follows:

  0.  Too new to rate; approved but not used.

• Pays (or paid) within 30 days of billing; pays account as agreed.
• Pays (or paid) in more than 30 days, but not more than 60 days, or one payment past due.
• Pays (or paid) in more than 60 days, but not more than 90 days, or two payments past due.
• Pays (or paid) in more than 90 days, but not more than 120 days, or three or more payments past due.
• Account is at least 120 days overdue, but is not yet rated 9.
• (Code 6 does not exist.)
• Making regular payments under a consolidation order or similar arrangement.
• Repossession (indicate if it is a voluntary return of merchandise by the consumer).
• Bad debt; placed for collection; skip.