[37] Bill 103 Original (PDF)
Bill 103 2003
An Act to amend the
Consumer Reporting Act
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
1. Subsection 1 (1) of the Consumer Reporting Act, as amended by the Statutes of Ontario, 1999, chapter 6, section 12, 1999, chapter 12, Schedule G, section 20, 2000, chapter 26, Schedule B, section 8, 2001, chapter 9, Schedule D, section 13 and 2002, chapter 30, Schedule E, section 5, is amended by adding the following definitions:
"credit score" means a numerical value or categorization derived from a statistical tool or modelling system used by a credit reporting agency to predict the likelihood of certain credit behaviours including default; ("cote crédit")
"key factors" means all relevant elements or reasons adversely affecting the credit score for a particular individual listed in order of their importance based on their effect on the credit score; ("éléments-clés")
2. (1) Section 8 of the Act, as amended by the Statutes of Ontario, 1997, chapter 24, section 210, is amended by adding the following subsection:
Same
(1.1) No consumer reporting agency shall provide a consumer report to any person without first obtaining,
(a) the person's name, address and telephone number; and
(b) confirmation that the information is sought for a purpose permitted under this section and will be used for no other purpose.
(2) Subsection 8 (3) of the Act is amended by striking out "Despite subsections (1) and (2)" at the beginning and substituting "Despite subsections (1), (1.1) and (2)".
3. (1) Subsection 9 (1) of the Act is repealed and the following substituted:
Procedures of agencies
(1) Every consumer reporting agency shall ensure accuracy and fairness in its consumer reports.
(2) Section 9 of the Act, as amended by the Statutes of Ontario, 2002, chapter 24, Schedule B, section 29, is amended by adding the following subsection:
Calculation of credit scores
(3.1) No consumer reporting agency shall consider as a key factor in determining the credit score of a person the fact that a consumer report has been requested.
4. (1) Subsection 10 (1) of the Act is repealed and the following substituted:
Disclosure of report
(1) Every person who refers to a consumer report in connection with any specified transaction or matter in which the person is engaged shall,
(a) inform the consumer that a consumer report respecting him or her has been or is to be referred to; and
(b) provide the consumer with the name and address of the consumer reporting agency supplying the report.
(2) Subsection 10 (2) of the Act is amended by striking out "where the consumer so requests" in the portion after clause (b).
(3) Subsection 10 (3) of the Act is repealed and the following substituted:
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(3) If a person proposes to extend credit to a consumer and a consumer report containing only credit information is being or may be referred to in connection with the transaction, the person shall give notice of the fact to the consumer in writing at the time of the application for credit and provide the name and address of the consumer reporting agency that will be supplying the report.
(4) Subsection 10 (5) of the Act is amended by striking out "unless the person notifies the consumer in writing at the time of the application for credit that the person intends to do so" at the end.
(5) Subsection 10 (7) of the Act is repealed and the following substituted:
Adverse action
(7) If a benefit is denied to a consumer or a charge to a consumer is increased either wholly or partly because of information received from a consumer reporting agency or a person other than a consumer reporting agency, the user of the information shall communicate the action to the consumer and at the time the action is communicated,
(a) inform the consumer of the nature and source of the information, if it is furnished by a person other than a consumer reporting agency; or
(b) deliver to the consumer a copy of the consumer report including the name and address of the consumer reporting agency, if the information is furnished by a consumer reporting agency.
Same
(8) The notice required under subsection (7) shall include notice of the consumer's right to correct any errors in the information received from a consumer reporting agency or a person other than a consumer reporting agency.
5. (1) Subsection 11 (1) of the Act is repealed and the following substituted:
Supplying list of names
(1) No person shall supply a list of names and criteria to a consumer reporting agency in order to obtain an indication of the names of the persons named in the list who meet the criteria unless,
(a) the person first notifies in writing each person named on the list or about whom information is being obtained that such a list is being submitted or that information is being requested; and
(b) the person provides the name and address of the consumer reporting agency involved.
(2) Subsection 11 (4) of the Act is repealed and the following substituted:
Supplying list of criteria
(4) No consumer reporting agency that receives a list of names and criteria or receives a request for names of persons so that information may be inferred about them, shall provide the name of any person without first notifying that person in writing of the request and the name and address of the person making the request and obtaining consent to the request.
6. (1) Clause 12 (1) (c) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 26, Schedule B, section 8, is repealed and the following substituted:
(c) the name, address and telephone number of every person on whose behalf the file has been accessed within the three-year period preceding the request;
(2) Clause 12 (1) (d) of the Act is amended by adding "addresses and telephone numbers" after "the names" in the portion before subclause (i).
(3) Subsection 12 (1) of the Act, as amended by the Statutes of Ontario, 2000, chapter 26, Schedule B, section 8, is amended by adding the following clause:
(f) the current credit score or the most recent credit score that was previously calculated by the consumer reporting agency including,
(i) the range of possible credit scores under the model used,
(ii) all the key factors that adversely affected the score,
(iii) the date the credit score was created, and
(iv) a summary of how the credit score was calculated,
. . . . .
(4) Subsection 12 (2) of the Act is repealed.
(5) Clause 12 (3) (b) of the Act is repealed and the following substituted:
(b) by mail if he or she has made a written request.
(6) Subsection 12 (4) of the Act is repealed and the following substituted:
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(4) Every consumer reporting agency shall provide a toll free telephone number and trained personnel to explain to the consumer any information furnished to him or her under this section.
(7) Subsection 12 (5) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule, is repealed and the following substituted:
Consumer's adviser
(5) A consumer who makes a request for disclosure under clause (3) (a) shall be permitted to be accompanied by one or more persons of his or her choosing to whom the consumer reporting agency may be required by the consumer to disclose his or her file.
7. (1) Subsection 13 (1) of the Act is repealed and the following substituted:
Correction of errors
(1) If a consumer disputes the accuracy or completeness of any item of information contained in his or her file, the consumer reporting agency shall, within 30 days, investigate the dispute and notify the consumer in writing of the results of the investigation.
Same
(1.1) If an investigation under subsection (1) results in a determination that the disputed information is inaccurate or incomplete, the consumer reporting agency shall correct, supplement or delete the disputed information in accordance with good practice.
Same
(1.2) If, after an investigation under subsection (1) and action under subsection (1.1), a consumer still disputes the accuracy or completeness of the disputed information or disputes the correction or supplement under subsection (1.1), the consumer reporting agency shall include in all consumer reports respecting the consumer a statement outlining the nature and basis of the dispute.
(2) Subsection 13 (2) of the Act is amended by striking out the portion before clause (a) and substituting the following:
Same
(2) If a consumer reporting agency corrects, supplements or deletes information under subsection (1.1) or adds a statement of dispute under subsection (1.2), the consumer reporting agency shall furnish notification of the correction, supplement, deletion or addition to,
. . . . .
Commencement
8. This Act comes into force six months after the day it receives Royal Assent.
Short title
9. The short title of this Act is the Consumer Reporting Amendment Act, 2003.
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EXPLANATORY NOTE
The Bill provides that consumer reporting agencies may not consider, as a key factor in determining the credit score of a person, the fact that a consumer report has been requested. In addition, credit scores and the key factors used to determine them are added to the list of information to be disclosed to a consumer on request.
The Bill provides that a person who takes adverse action against a consumer on the basis of information contained in a consumer report shall inform the consumer of the action and provide a copy of the report, including the name and address of the agency that prepared it, and shall notify the consumer of the right to correct incomplete or inaccurate information.
The Bill provides that consumer reporting agencies shall investigate disputed information within 30 days and correct, supplement or delete any information found to be incomplete or inaccurate. If, after this is done, a consumer still disputes the accuracy or completeness of information held by the agency, the agency shall include a statement of the nature and basis of the dispute in all reports relating to the consumer.