Maintaining a good credit score is a priority for most consumers. But what happens when incorrect information shows up on your record?
Elvis Fernandes and his wife were attempting to buy a house when the process hit a snag.
“My mortgage specialist came back to me and said, ‘You know what, Elvis, there’s a lot of stuff on this file that when they’re doing your credit report, something’s not sitting here,’” he explained.
At issue was a mortgage which is listed as “settled under a consumer proposal” on his Equifax report, which caused his credit score to drop. He called up his bank, Simply Financial, which agreed that it was an error.
Fernandes says that was four months ago.
“They took it away from my file and plastered it on my wife’s file. Still, ‘mortgage closed under consumer proposal,’” he said, adding he was told by Equifax that it could take four weeks to get it removed.
“I said you’ve already got confirmation from the bank. It doesn’t take you four weeks. It takes you five minutes.”
Financial educator and consumer credit counsellor Mark Kalinowski acknowledges the time frame to get corrections is both long and frustrating for people.
“Unfortunately, there’s not much recourse,” he says, recalling a former client of his who was a victim of identity fraud and went through a similar process. The client ended up filing for bankruptcy.
“He could not get it removed. He was being chased by collection agencies. He got so frustrated, he just said, I need a clean start, I can’t stand it.”
Speakers Corner reached out to Equifax, which could not address Fernandes’ file specifically, citing privacy issues. However, in a written statement, a spokesperson confirmed, “We have engaged directly with this individual and will ensure all new or pending matters have been investigated and resolved.”
When asked about the length of time needed to resolve the issue, they said, “When a consumer disputes information, Equifax conducts an investigation in accordance with applicable provincial and federal requirements.”
“It’s not a straightforward process,” says Kalinowski. “While it would be nice to say that it’s 30 or 60 days, the truth is it can take a long time and a lot of persistence to make corrections.”
Fernandes argues the process is too long, and he’s calling on policy makers in Ottawa to put more pressure on credit reporting agencies in Canada.
“Somebody’s got to do something about it, and it’s got to come from a higher level,” he says. “My feedback to the policy makers is, what are you doing? What are you doing? That’s all I’m asking. It’s one simple question.”
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