Free Consultation

Equifax and credit rating after CP discharge?

‘-I had a successful discharged Consumer Proposalnearly 3 years ago.
-I checked my credit report for the first time 6 months ago.
-One of the creditors that was included in the CP had me rated at an R9 with the status of ‘BAD DEBT/UNABLE TO LOCATE’
Comments: “Written off’
-I spent 4 weeks getting Equifax to
correct error and provided all the correct
info. They reported that all was fixed.
(and the mailed copy showed that it indeed
was corrected!)
-Recently, I was declined as I had an R9
on my credit report.
-Sure enough, purchased another copy
and all is still the same.
I again, emailed and faxed all info.
I can not reach by phone either.
I have tied to contact the Trustee company
but they too have not returned my calls.
Question is: How do I get this fixed quickly and properly?
-Question 2- My 4 year CP was discharged
2 1/2 years ago (total 6.5 yr). I cannot seem to get a straight answer about how long until this is removed from my credit and what rating will it drop to if there are no other debts on record?

One Response to “Equifax and credit rating after CP discharge?”

A licensed trustee said...

I left this posting intact because (unfortunately for the person who posted) it is a perfect example of what is wrong with the credit reporting system.

Most people think that the credit reporting agencies are run by the government or by non-profit corporations. They most definitely are not. The credit bureaus are for profit businesses and as such they cater more to their members (the credit granters) than the public.

Here is likely what has happened. Your discharge was properly processed byb your trustee. The government then properly reported it to the credit bureau. The credit bureau probably properly reported it too, BUT then one of the credit bureau’s members (ie a creditor) reported on the debt after the fact which would have reset the system.

As a rule, the credit bureau reports whatever their members tell them to report.

One of our own clients just ranted at me for not properly performing my job for this very reason. I could sense his frustration, but because we had also been discharged as trustee, we no longer had the capacity to deal with his situation – not that he beleived me…

Regardless, there is no quick and easy way to fix this. The first thing to do is contact the creditor that has misreported and ask them to correct the item. If they refuse (or don’t even respond) then your choice is either the credit bureau dispute resolution process – which you have already followed one – or hire a lawyer and start suing people.

I am sorry, but this is a very major flaw in the Canadian credit system and to date, no one has taken the time to try and correct it.