Credit reporting agencies or credit bureaus, collect information about consumers' financial affairs and sell that information to their business members, such as credit grantors, employers and insurance companies.  The credit bureaus charge annual fees as well as a fee for each credit report requested by members.

Credit bureaus obtain their information from three major sources:

 1. Consumers supply information, primarily from filling out application forms for credit.

 2. Public records provide information on such matters as bankruptcies, Court judgements, foreclosures and agreements registered with Provincial authorities.

 3. 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.
  1     Pays (or paid) within 30 days of billing; pays account as agreed.
  2     Pays (or paid) in more than 30 days, but not more than 60 days, or one payment past due.
  3     Pays (or paid) in more than 60 days, but not more than 90 days, or two payments past due.
  4     Pays (or paid) in more than 90 days, but not more than 120 days, or three or more payments   past due.
  5     Account is at least 120 days overdue, but is not yet rated 9.
  6.    (Code 6 does not exist.)
  7     Making regular payments under a consolidation order or similar arrangement.
  8     Repossession (indicate if it is a voluntary return of merchandise by the consumer).
  9     Bad debt; placed for collection; skip.

The Vancouver Credit Bureau's policy regarding bankruptcy information is:

Purging Files
The data included in the bankruptcy will be purged six years from date of last activity.

Bankruptcy Discharge
There is no change to data already appearing on the file following the posting of a bankruptcy or a discharge.

Listing Balances of Debts
The data that the credit grantor provides is on tape.  The Credit Bureau records the balance shown by the credit grantor.

Reporting Standards
Credit Bureaus share information within a system known as the National Equifax Network. The
network observes strict standards governing reporting of adverse information and purging of credit
reporting records. The credit bureau must investigate and use its best efforts to confirm disputed
negative information. Appeal of an action taken by a credit bureau may be referred to:

The Registrar of Credit Reporting Agencies
1019 Wharf Street
Victoria, B.C. V8V 1X4
 

A decision of the Registrar may be appealed to:

The Commercial Appeals Commission
1304865 Hornby Street
Vancouver, B.C. V6Z 2H4
 

A consumer has a right to full disclosure of the content and the source of any information on her or
his file. The Registrar of Credit Reporting Agencies recognizes that all complainants consider their
issues to be very serious. For that reason the Credit Reporting Branch insists that credit reporting
agencies and creditors provide prompt and complete reports to the consumer about adverse credit
information.
 

The Credit Reporting Act protects several rights of consumers:
 

1. The Act applies only to consumer transactions.
2. 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.
3. 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.
4. 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.