Canadian Money Advisor 2005

The purpose for publishing these credit report problem stories about Equifax Canada and TransUnion Canada is because we feel that most people who have good credit and bad credit have problems of inaccuracies on their credit reports. Unless you order your credit reports you won't know what types of problems or issues are listed on your reports.

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STORY: Inaccurate $466,000 Judgment

One of my favorite stories of an inaccuracies is a $466,000 that was listed on a ladies credit report. When she went to the lender looking for a mortgage, the lender told her that her credit was terrible because of this LARGE judgement against her from "her mortgage company", ING Direct. ING Direct is a large mortgage company. They and their lawyers created the problems for this lady.

She was shocked and called me.

It turns out that the people that owned the house that she was renting was owned by people who had the judgement against them for $466,000. Somehow this lady got named in the judgment incorrectly.

It took us six weeks of fighting and disputing to get this item off of her credit report. In the meantime, she had to wait the six weeks before she could get her mortgage because prospective lenders didn't believe her.

This is an example of errors we see on credit reports.

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STORY: Bankruptcy listing Errors

One of our clients went bankrupt three years ago. Everyone who declares bankruptcy feels terrible about, and they are penalized for 7 years afterward. It certainly isn't fair if there are even more problems on their credit reports.

This gentleman's credit score keeps going down every month even though he currently pays his debts on time. Even if he's gone bankrupt, his credit score should be going up each month if he's paying his bills and conducting himself properly financially.

What's happening is that TransUnion is still counting his debts which were declared in his bankruptcy as still 'outstanding'. At this point they're showing as 3 years delinquent. This is making his credit score go down each month because apparently his debts are getting more and more past due. These debts were extinguished with the bankruptcy. They shouldn't be reporting.

TransUnion has done nothing to fix this problem even though we've pursued it with top government levels. We feel that you need to be exceptionally cautious with any information that TransUnion is reporting about you even if you haven't gone bankrupt.

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STORY: Robert N. Clark wins a case against Equifax in Canada!

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Monty's Note: I spoke to Robert on the phone. He and his family have gone through a horrendous amount of pain, stress and financial problems for 10 years while fighting Equifax. He is a man of strength and courage as far as I'm concerned. Hat's off to Robert and his family.

Equifax faulted for not responding - Scotiabank admitted its failure - Robert N Clark WINS lawsuit with a disapponting verdict - He will be appealing!

Ruling will spur credit agencies to fix errors quickly

BOB AARON

An Ontario court has given a strong incentive for banks and credit reporting agencies to act faster and more efficiently when a consumer brings attention to an error in his credit report.

In January 1994, Robert Neil Clark applied for a personal loan with the Royal Bank of Canada. He learned that he had an R-9 credit rating, dated 1993, due to unpaid retail debt he allegedly owed to the Bank of Nova Scotia. (R-9 and I-9 are the worst possible ratings in a credit report.)

Clark then contacted Equifax Canada Inc., a national credit reporting agency that reports information provided to it by its members. He was assured of an investigation and correction in case of an error.

From 1994 to 2000, he had difficulties obtaining credit. In the course of eventually receiving all the loan approvals, various banks often told him of the R-9 entry on his report.

He also reported repeated communications with both Scotiabank and Equifax over this matter. Finally, in 2000, Equifax confirmed that the delinquent loan was not against Clark, but another person with a similar first and last name but a different middle name.

Clark sued Scotiabank, which reported the R-9 rating in the first place, and Equifax, on the grounds that the continuing misrepresentation of his credit had affected his life and that he had suffered serious depression as a result. He argued that the Scotiabank and Equifax were negligent in their duties and were liable for his psychological problems.

In June, Justice Gerald F. Day of the Ontario Superior Court ruled in favour of Clark. Quoting an earlier Ontario court decision, he wrote that if credit-reporting agencies are negligent in gathering and reporting information, and if their report is inaccurate, their actions could cause creditors to either deny credit or charge more than usual.

Pointing to the importance of credit and credit ratings in our society, he said credit reporters had to be accurate, skilled and diligent.

Justice Day ruled that Scotiabank and Equifax failed to take reasonable care with Clark's credit rating. Equifax did nothing for many years, he wrote.

Scotiabank admitted its failure, and although Equifax could not be blamed for supplying information provided by the bank, it could be faulted for not responding to the plaintiff's repeated requests for clarification over several years.

Clark claimed damages for distress and loss of financial reputation as a result of the actions of Scotiabank and Equifax, but was unable to prove actual monetary loss. Instead, the judge awarded him $5,000 against each defendant for intrusion on the financial integrity he is entitled to enjoy.

The Clark case, one hopes, will serve as a strong incentive for financial institutions and credit reporting agencies to be more responsive when consumers ask for corrections to their credit history.

More then 10 years of suffering credit report errors forced this litigation!

This story was unAuthorized by
Robert N. Clark
robertclark@rnr-online.com

www.RnR-Online.com
http://www.rnr-online.com/creditreporterrors.html