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?
One Response to “Division 1 rating? vs. a Consumer Proposal”
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.)
You must be logged in to post a comment.
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.