Task Performed by the Credit Bureaus

Credit bureaus, particularly local agencies, accomplish two functions. They give the information as outlined in the general information section. They may also perform as a collection agency. The credit bureau may get in touch with you trying to gather payment for one of your creditors.

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All about Collection Agencies

Collection agencies are also basically unregulated and similar to credit bureaus which are enclosed under provincial law. The following are general collection rules:
o contact may be made between 7:00 a.m. to 9:00 p.m.;
o a phone call can be done to the place of employment to verify if the debtor works at that place;
o a collector is compensated on a commission basis; if the debtor pay off the debt, the collector will also be paid;
o there should be no calling of the other family members except if they have approved the debt or are just checking of the residence of the debtor;
o Taking legal action would require the issuance of a statement of claim and hearing in court for judgment will follow. It then end to garnishment of wages and getting hold of the assets such as bank accounts and liens on property;
o collectors may not grab the assets with no a court order; usually a bailiff or the sheriff will sequester the asset at this point;
o creditors or collectors may only go into a place of residence with the debtor's consent;
o Harassment is not allowed and a debtor has the capability to raise a complaint against a collection agent if they believe they are being excessively harassed.

Bankruptcy and Proposals on the Credit Bureau:

As mentioned above, proposals are forwarded as R7 or it may also be sent as R8 or R9 as a lot of credit bureaus do not differentiate between a proposal and bankruptcy as proposals are reported by the creditors as a Bankruptcy Proposal. Bankruptcy information is not sent six years after the time of discharge. Proposal information is not reported three years after the date that the proposal was accomplished. A second or succeeding bankruptcy is reported for 7 years for every bankruptcy, for instance, an overall of 14 years for two bankruptcies.

Following a bankruptcy receiving an Absolute or Automatic discharge, or having a Certificate of Completion, a credit bureau statement should be ask to make sure the proper information is documented on the credit database. A trustee may send information to the credit bureau regarding the bankruptcy or proposal information right through the management of the file. However, the trustee's information does not influence the credit bureau report. The credit bureau acquires update information from computer documents at the Office of the Superintendent of Bankruptcy on a cyclic and normal basis. If the information is erroneous, the person should present a copy of the discharge or proposal information to the credit bureau in an outlined form to make everything clear and understandable.

See Also

Credit Bureau Inquiries

Credit complaint resources

TransUnion Canada

External Links

Business.inquirer.net

Equifax.com

Bankrate.com