Archive for Category 'credit report', page 2

Questions: 1.How does debt settlement effect my credit?

2.Can this process be done by any company or do they have to be non profit companys.

3. If this were an option for me, who would regulate how these companys get paid and how much I would pay to have to this service completed for me?

Answer: Debt settlement, or a debt management plan, has the same impact on your credit report as does a consumer proposal; you will be rated an R7, and that rating stays for three years after you have completed all payments.

There are no regulations covering debt management plans or debt settlement.  Anyone can do them.  However, in all provinces in Canada the not-for-profit agencies that do debt management plans are members of their provincial association of credit counsellors, and they accredit them and monitor their activities.

If you are planning to do a debt management plan, contact an accredited credit counsellor, and confirm they are a member of their provincial association of credit counsellors.

Question: Here is a scenario:

If someone has outstanding debt and they have not been contacted not contacted either the debtor or it’s agency when does the debt fall off the table?

My understanding is 7 years. So by example someone racks up debt in the year 1999. Has made no payments, not attempt any payments, has not contacted nor been contacted by the debtor. Do they then have a clean record in the year 2007?

Answer: In most cases credit information older than 7 years old is purged from your credit report, since lenders are most interested in current information, not what you were doing 10 years ago.  Therefore, if a creditor ignores you for seven years, it is likely that the information will drop off your credit report.

However, you still owe the money, so at any time in the future the creditor could start collection again, and attempt to collect from you (although with the passage of time that becomes increasingly unlikely).

In most cases it is better to deal with your debts, instead of relying on them to disappear from your credit report.

Question: Hi! I went through a consumer proposal, and now Im wondering what do I have to do to clear my credit report. Is it going to be there forever? I was told that after 3 years my credit record will be clean. Do I have to contact credit agency or it will be done automaticaly?

Answer: It will be done automatically.  According to Equifax, a consumer proposal is automatically purged from your credit report three years after all payments are made.

Question: in 2002, we ran into alot of issues paying our bills. We had purchased a 3 year old vehicle on a used car lease which we subsequently lost to repossession due to non payment. Our credit report still shows a $10,000 debt but at time of repo the account was at a balance of less than $3500.00. After a house fire we don’t have any paperwork left regarding the lease, etc. the company has refused all requests for a statement of account or to update our credit report to indicate the correct balance. We’ve cleaned our credit reports and repaid all old debt with the exception of this account and would like to start making pymnts to this company to pay off our debt but can’t get any response from them as to the total debt or a payment schedule.

Answer: If the company won’t respond, you could contact the credit bureau and ask them to remove the item from your credit report, since you don’t believe that you owe the money.  The creditor will be required to prove to the credit bureau that the balance is owing, and then the credit bureau can provide that proof to you.  If that doesn’t work, the assistance of a lawyer may be required.

Question: My husband has been trying to apply for a credit card for a while. We have been out of Canada for the past 5 years and recently returned 2 years ago. When we came back, we paid off his student loan. My husband and his father has the same name. Equifax has a lot of information and credit details that dont belong to my husband but to his father. With this even though all our current payment are always up to date and he is making close to $100,00 a year, no banks will give him a credit card.

How do we fix this problem? Should we go to the bank that gives the false information? I know the last resort maybe getting a lawyer but I want to know of any repairs that we can do without forking out a huge chunk of money since the whole thing is not our fault at all. Thanks

Answer: First, you should contact Equifax.  They have a procedure in place to review information for accuracy.  If after providing proof to Equifax that your credit report is in error, if they don’t correct it, then yes, consulting a lawyer may be your only option.  If Equifax has made an error, it is possible that your lawyer will be able to recover their fees from Equifax for providing knowingly false information.