the credit reporting industry - trans union

© 2004 Trans Union of Canada, Inc. All Rights Reserved.

CREDIT REPORTING INDUSTRY

Nancy MacRaeInvestigations DepartmentDecember 2, 2004

2

Overview

Introduction to TransUnion

•Background

•Information maintained

•Legislative requirements

Services for Customers

Services for Consumers

How to protect your credit record

Questions

3

Background

• TransUnion is an international association

• TransUnion corporate headquarters are located in Chicago, IL

• Canadian corporate headquarters are located in Scarborough

• Operations centres are located in Hamilton

• Offices in each province provide nationwide service to customers and consumers

4

Information Maintained

• Personal Information• Address Information• Employment Information• Loans• Credit Cards• Bankruptcy information• Legal Items• Collections• NSF Cheques• Banking Information• Consumer Statements

5

Sources of Information

• Retail organizations

• Financial institutions

• Finance companies

• Credit unions

• Auto finance organizations

• Public record offices

• Consumers

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Legislative Requirements

Provincial Credit Reporting Legislation• registered as “consumer reporting agency”• outlines procedure requirements for reporting agencies (i.e.

permissible purposes, consumer disclosure, dispute resolution)

• indicates the maximum amount of time derogatory credit information can report on a consumer’s file

Personal Information Protection and Electronic Documents Act (PIPEDA)• defines requirements for identifying purpose, obtaining

consent, providing access to information, and establishing a complaint process

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Maximums Outlined in Credit Reporting Legislation

• Click to add text regarding the chart.

BC AB SK MB ON NS PEI NFLegals

6 years 6 years 7 years 7 years 7 years 6 years 10 years 7 years

Unfav. info


Collect-ions


1st Bank- ruptcy

6 years from

discharge date

6 years from

discharge date

7 years from

discharge date

7 years from

discharge date

7 years from

discharge date

6 years from

discharge date

7 years from

discharge date

7 years from

discharge date

2nd Bank- ruptcy*

Note: If consumer has multiple bankruptcies both will report 14 years from the filing date.

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What Credit Reporting Legislation Does Not Define

New Brunswick, Quebec, Northwest Territories, Nunavut, and Yukon do not have legislation

• TU uses the rules of neighboring provinces

Consumer Programs• Credit Counselling will purge 2 years from the satisfied

date• Proposals and OPD’s will purge 3 years from the satisfied

date

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Permissible Purposes

• credit worthiness

• employment assessment

• tenancy assessment

• collection of a debt

• underwriting of insurance

• eligibility status for government programs

• direct business connection/consent

• law enforcement & government agencies

• verification of information

• fraud protection

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Services to Customers

• Full credit report

• Custom Solutions

• Scoring Products

• New applications or review of existing accounts

• Assist in credit strategies

• Basic risk, bankruptcy, collection

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Services to Customers

• Fraud Products

▪ Warning system- address, SIN, etc

▪ Skimming Information

▪ Application Fraud

▪ Verification٭ Used to verify address on application (paper or

electronic)٭ Used to “authenticate” individuals

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Services to Consumers

• Access to Information

• Fraud Victim Assistance

• Verification of Information

• Credit Scores

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Methods of Access to Information

Website• immediate access to credit file and credit bureau “risk” score

is available, for a fee

Walk-in Service• provincial offices provide immediate access to credit bureau

file, free of charge (some exceptions)

Mail Service• credit file will be supplied via Canada Post upon receipt of

appropriate identification

Telephone Service• consumers who have recently been denied credit, can speak

to a representative

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How can you contact TransUnion?

Website: www.tuc.ca

TransUnion Consumer RelationsBox 338, LCD 1, Hamilton, ON L8L 7W2 (except PQ)orTransUnion Consumer Relations1600 Henri-Bourassa W., Suite 200, Montreal, PQ H3M 3E2 (PQ only)

(800) 663-9980 or (905) 525-0262 (except PQ)(877) 713-3393 or (514) 335-0374 (PQ only)Fraud: (877) 525-FVAD (3823) (except PQ)

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How can you get a copy of your file?

Complete the Request formProvide your name, current address, previous

address, & signature– your telephone number and date of birth are beneficial pieces

of information, but optional

Provide two pieces of photocopied identification (front & back)

Mail your request to TransUnion Consumer Relations Centre

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Fraud Victim Assistance

• Potential/Confirmed Victims

• Fraud Warning

• Assistance for Contacting Customers on Behalf of

Victim

• Assistance to Customers

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Verification of Information

• Methods of Receipt

• Process to Verify

• Timeframes

• Consumer Options Upon Completion

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Dispute Cycle

C o n su m era cce p tsre su lts

C o n su m e r d o esn o t accep t resu lt

(C u s to m e rs /C re d ito rs /M in is try con ta c te d)

S e nd no tice toC o n su m er in d ica ting

n o cha ng e m a de

In fo rm a tio n A ccu ra te(n o ch an g e m ad e)

S e nd no tice toC o n su m er in d ica ting

ch an g es m a de

N o tice sen t top re v iou s in qu ire rs

a s p er p ro vin c ia l le g isla tion

In fo rm atio n In accura te(in fo rm atio n ve rif ie d a n d ch an g e m ad e p e r re p orting

C u s tom e rs /C re d ito rs a u th o riza tio n )

In fo rm ationIn ve s tig a ted

(C u s tom e rs /C re d ito rs co n ta c te d)

C o nta c tsT ra n sU n ion

C o nta c tsC u s to m e rs /C re d ito rs

C o n su m er in d ica tesin fo rm a tio n is in co rre ct

C o n su m e r re ce ive s aco p y o f h is /h er c re d it f ile

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Credit Scores

• What is a credit risk score?

• Why do lenders use credit scores?

• Do inquiries impact a credit risk score?

• How does a consumer get a higher score?

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How do you protect your credit record?

Pay your bills on time

Maintain an awareness of your credit payment

history

Give the appropriate information when applying

for credit

Do not apply for more credit than you need

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Summary

Storehouse of information

Legislated industry

Many products to support customers

Developing more areas to support consumers

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Questions?