Division 1 rating? vs. a Consumer Proposal

March 29th, 2007 by Questions

It is my understanding that a Division 1 proposal is not a bankruptcy. Does a Division 1 proposal have an R7 rating the same as a Consumer Proposal is given?

Questions

One Response to “Division 1 rating? vs. a Consumer Proposal”



March 30, 2007 at 5:39 pm, A licensed trustee said:

Yes, it does – so does a credit counseling plan too.

I should warn you that what the credit reporting agencies say and what they do are often dramatically different.

Proposals are supposed to result in a rating of R7, but the reporting agency will actually report whatever their members tell them to. If a company has already report you as an R9 (say they wrote the account off or sent it to collections) and you file a proposal they may not request the change to an R7.

This is a major flaw in the credit reporting system and until/unless people make some noise about it, it isn’t likely to change.

Sorry – this is a personal pet peeve with me and since I have this soapbox available, I tend to use it.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)