This article is intended to give an understanding on how long the Credit data is retained on the credit Bureau.
CREDIT INQUIRIES TO THE FILE:
An Inquiry made by a Creditor will automatically purge three (3) years from the date of the inquiry. The system will keep a minimum of five (5) inquiries.
CREDIT HISTORY AND BANKING INFORMATION:
A credit transaction will automatically purge from the system six (6) years from the date of last activity.
The most important phrase is “last activity”. Most consumers miss this phrase and think that it should drop off after 6 years it is reported. If any creditor/collection reports an letter or an phone call showing their intention to collect to the credit bureau, then that date becomes an last activity reported date.
All banking information (checking or saving account) will automatically purge from the system six (6) years from the date of registration.
VOLUNTARY DEPOSIT – ORDERLY PAYMENT OF DEBTS, CREDIT COUNSELING:
When voluntary deposit – OPD – credit counselling is paid, it will automatically purge from the system three (3) years from the date paid.
REGISTERED CONSUMER PROPOSAL:
When a registered consumer proposal is paid, it will automatically purge three (3) years from the date paid.
BANKRUPTCY:
A bankruptcy automatically purges six (6) years from the date of discharge in the case of a single bankruptcy. If the consumer declares several bankruptcies, the system will keep each bankruptcy for fourteen (14) years from the date of each discharge. All accounts included in a bankruptcy remain on file indicating “included in bankruptcy” and will purge six (6) years from the date of last activity.
JUDGMENTS, SEIZURE OF MOVABLE/IMMOVABLE, GARNISHMENT OF WAGES:
The above will automatically purge from the system six (6) years from the date filed. This also includes an reported foreclosure as well as an Vehicle seizure.
COLLECTION ACCOUNTS:
A collection account under public records will automatically purge from the system six (6) years from the date of last activity.
SECURED LOANS:
A secured loan will automatically purge from the system six (6) years from the date filed.
(Exception: P.E.I. Public Records: seven (7) to ten (10) years.)
In addition to “R” accounts, this rating system is also used for credit types “O” and “I.” (The definition of “R”, “O” and “I” is mentioned in another article
In circumstances where individuals have filed for bankruptcy, an R9 rating will be given for all debts included in the bankruptcy. These R9’s will remain on the credit file for 6 years after the date of discharge. Any new credit obtained after the bankruptcy will be displayed in accordance with the above credit ratings. There is also a rating system that indicates the type of creditor that has registered the credit they have issued to a debtor. However, in most cases the particular type of creditor will be evident from the type code and the creditor name.
