I routinely receive phone calls from Canadians requesting assistance removing an account appearing on their credit report that should not be there.
Nothing can be more frustrating to have an item appear on your credit report that should not be there. In this article we are going to canvass when an article should legally be removed from your credit report. Furthermore, I will describe actions you can take to remove an item from your credit report.
This article focuses on the scenario where an item appears on your credit reporting after it legally should be removed from your credit report.
1. Background Information
In Canada there are two credit reporting agencies, Equifax Canada and TransUnion. One of your accounts might show up on a credit report from one or both of these credit reporting agencies. Credit reporting agencies are for-profit entities regulated by provincial law.
I often use a diner analogy to describe how credit reporting agencies operate.
In our diner analogy your server is your creditor your creditor's collection agency. The short order cook is the credit reporting agency. When you go to a diner the short order cook will only prepare the meal requested by your server.
Similarly, a credit reporting agency will only report unpaid items based upon information provided by your creditor or its authorized collection agent.
2. How long can an item legally appear on your credit report?
The answer to this question depends upon where you live in Canada.
i. Everywhere in Canada outside of Ontario
For everyone living outside Ontario, an unpaid account can appear on your credit report for six years from the date of your last payment.
ii. Ontario
If you are an Ontario resident then your unpaid account can legally appear on your credit report for seven years from the date of your last payment.
It is the policy of Equifax Canada to remove an item from a credit report--including Ontario residents--six years from the date of last payment.
If you are an Ontario resident and your creditor has reported your account to TransUnion then it can legally appear on your credit report for seven years from the date of your last payment.
iii. Scenarios where an item appears on your credit report when it should not
There are two scenarios where an item appears on your credit report that ought not to be there.
The first scenario involves an honest mistake. In some instances, an unpaid account will appear on your credit report due to some clerical or computer error.
The second scenario arises where your creditor or its authorized collection agent has engaged in misconduct resulting in an item appearing on your credit report after it should legally be removed from your credit report.
If your account appears on your account after it legally should be removed from your account then your creditor--and its authorized collection agent--have leverage over you when you apply for credit or a loan. Your prospective lender will inform you that your application will be denied unless the unpaid account appearing on your credit report is resolved.
2. How to get an item removed from your credit report
i. Confirm the date of your last payment
If your goal is to have an item removed from your credit report then it is critical for you to confirm the date of your last payment with the relevant creditor. If your account has been sold to a debt buyer then you would make an inquiry to your original creditor, the firm that provided you with goods, services, or credit.
There are two ways you can confirm the date of you last payment on an account. You can go on the relevant creditor's website, call their main phone number, identify yourself, and request the date of your last payment.
Under privacy laws in Canada, you can also write a letter requesting this information to the Chief Privacy Officer at the relevant creditor.
ii. Make a written demand to have item removed from your credit report
If you have confirmed that your unpaid account should be removed from your credit report due to the passage of time then you should send a letter to both the relevant credit reporting agency or agencies as well as your creditor.
This written demand should include the following information:
your name
the account in question
confirm the date of your last payment
provide any evidence with respect to date of last payment
demand the immediate removal of this item from your credit report
make a statement regarding the consequences of failure to remove item from credit report
Your written demand should indicate that failure to remove the item from your credit report by a specific date will have consequences. Firstly, you will make a written complaint to the government agency in your province responsible regulating credit reporting agencies. Secondly, you will seek legal advice in connection with suing them for defamation.
Ideally, you will send your written demand to your creditor and your credit reporting agency by registered mail. It is important that you keep your receipt for your registered letter as well as a copy of your letter demanding removal of the item from your credit report.
iii. Your options where you do not obtain a satisfactory response
If your written demand to have an item removed from your credit report does not obtain the desired result then you have several options.
Firstly, you can make a written complaint to the government agency in your province responsible for regulating credit reporting agencies. Secondly, you can hire a lawyer to send a letter to both your creditor and the credit reporting agency demanding that the item be removed from your credit report, and that failure to do so will result in a lawsuit against them for defamation.
4. Contact Mark Silverthorn to learn more about how to get an item removed from a credit report
If you want to learn more about how to get an item removed from your credit report then I would invite you to contact me and schedule a 30-minute telephone consultation.
Our firm recently published a YouTube video titled "How to Remove an Item From Your Credit Report".
In this YouTube video former collection agency lawyer Mark Silverthorn describes how to remove an item from your credit report.
Former collection agency lawyer and author Mark Silverthorn routinely assists consumers with having an item removed from their credit report.