Anyone who provides credit repair agreements as outlined under the Credit Reporting Services Act must follow all requirements and prohibited representations as indicated in RULE CRS-003 Credit Repair Agreements and Prohibited Representations.


Definitions


Act means the Credit Reporting Services Act.


“supplier” means a person who is in the business of selling, leasing or trading in goods or services or is otherwise in the business of supplying goods or services and includes an agent of the supplier and a person who holds themselves out to be a supplier or an agent of the supplier.


“trade-in allowance” means the greater of:


(a) the price or value of the consumer’s goods or services as set out in a trade-in arrangement, and


(b) the market value of the consumer’s goods or services when taken in trade under a trade-in arrangement.


“trade-in arrangement” means an arrangement under which a consumer agrees to sell their own goods or services to the supplier, and the supplier accepts the goods or services as all or part of the consideration for supplying goods or services.


Requirements


A credit repairer must include the following statement in the credit repair agreement:


Your Rights under the Credit Reporting Services Act


If a credit reporting agency maintains a credit file with respect to you, you have the right to dispute with the agency, at no cost to you, the accuracy or completeness of the information about you in its file.  You do not need to hire a credit repairer, or anyone else, to exercise this right. If the file contains inaccurate or incomplete information, the credit reporting agency must correct it within a reasonable period of time.


It is an offence for the credit repairer to require or accept payment or security for payment in advance of causing a material improvement to your credit report, credit information, file credit record, credit history or credit rating.


You may cancel this agreement at any time during the period that ends ten (10) days after the day you receive a written copy of the agreement.  You do not need to give the credit repairer a reason for cancelling during this 10-day period.


To cancel this agreement, you must give notice of cancellation to the credit repairer. This notification may be provided by way of letter delivered in person or sent by registered mail or prepaid courier, fax, email, or by any other method that can show you gave notice of the cancellation.


If you cancel this agreement, the credit repairer has fifteen (15) days to refund any payment you have made and return to you all goods delivered under a trade-in arrangement (or refund an amount equal to the trade-in allowance).


Prohibited Representations


(1) Pursuant to section 26 of the Act, the following are prohibited representations in the case of a credit repairer:


(a) An express or implied representation that the credit repairer is approved, licensed or registered by the Government of Canada, the Government of New Brunswick, the Commission or the government or regulator of any other province or territory of Canada;


(b) An express or implied representation that the operations of the credit repairer are regulated by the Government of Canada, the Government of New Brunswick, the Commission or the government or regulator of any other province or territory of Canada; and


(c) Subject to subsection (2), an express or implied representation that the credit repairer will be able to cause a material improvement to the credit report, credit information, file, personal information, credit record, credit history or credit rating of a consumer.


(2) The representation described in paragraph 3 of subsection (1) is not a prohibited representation if the credit repairer makes the representation after:


(a) examining the consumer’s credit report, credit information, file, personal information, credit record, credit history or credit rating; and


(b) reasonably concluding that the consumer’s credit report, credit information, file, personal information, credit record, credit history or credit rating is inaccurate or incomplete and correcting, supplementing or deleting any item of information would cause a material improvement to the consumer’s credit report, credit information, file, personal information, credit record, credit history or credit rating.



Regulatory Instruments

RULE CRS-001
RULE CRS-002
RULE CRS-003
Notice of Adoption

 


Downloadable Resources

Settling Debt - What you need to know

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