Consumer Reporting Amendment Act, 2001 Cordiano, Joseph — Bill 158 (37th Parliament, 3rd Session)

Bill 158, 37-3

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Bill 158, Consumer Reporting Amendment Act, 2001

Cordiano, Joseph

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[37] Bill 158 Original (PDF)

Bill 158 2001

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 and 2001,

chapter 9,

Schedule D,

section 13, is further 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")

(1) Section 8 of the Act, as amended by

the Statutes of Ontario, 1997,

chapter 24,

section 210, is further 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repealed and the following substituted: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 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repealed and the following substituted: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:

Same

(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

inserting "addresses and telephone numbers" after "the names".

(3) Subsection 12 (1) of the Act, as amended by the

Statutes of Ontario, 2000,

chapter 26,

Schedule B,

section 8, is further

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) Subsection 12 (3) of the Act is amended by adding

the following clause:

(

c) by mail if he or she has made a written request.

(6) Subsection 12 (4) of the Act is repealed and the

following substituted:

Same

(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

supplementation 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, 2001 .

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.

Date Bill stage Activity Committee

October 31, 2002

Ordered referred to Standing Committee

Standing Committee on Finance and Economic Affairs

October 31, 2002

Second Reading

Carried

December 12, 2001

First Reading

Carried

December 5, 2001

Ordered carried over from previous session

December 5, 2001

Carried over to next session

Debates and Progress

First Reading

December

12, 2001

Second Reading

Debate

October

31, 2002

Mr. Cordiano, Mr. Tascona, Ms. Churley, Mr. Dunlop, Mr. Sergio,

Mr. Galt

Declared carried and referred to the Standing Committee on

Finance and Economic Affairs

Committee

Standing Committee on Finance and Economic Affairs

Third Reading

Royal Assent :

Coming into force :Royal Assent.

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Document details

Collection	Ontario — Bills
Citation	Bill 158, 37-3
Type	bill
Volume / chapter	p37 s3 bill 158 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	2de649cac74e763de0a9579fe891a410d53cc19b

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