Bill C-367

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First Reading

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	1st Session, 37th Parliament, 49-50 Elizabeth II, 2001
	House of Commons of Canada
	BILL C-367
	An Act respecting the release of credit information
	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Short title	1. This Act may be cited as the Consumer Credit Information Act.
Definitions	2. The definitions in this section apply in this Act.
``credit bureau'' « agence d'évaluation du crédit »	``credit bureau'' means an organization subject to federal jurisdiction that provides credit grantors with information respecting an individual's financial history.
``credit grantor'' « fournisseur de crédit »	``credit grantor'' means a financial institution that
	(a) makes a loan or is considering making a loan; or
	(b) grants credit or is considering granting credit
	to an individual.
``federal corporation'' « personne morale de régime fédéral »	``federal corporation'' means a corporation incorporated under or pursuant to an Act of Parliament.
``financial institution'' « institution financière »	``financial institution'' has the meaning assigned to that expression by the Trust and Loan Companies Act.
``Superintend ent'' « surintendant »	``Superintendent'' means the Superintendent of Financial Institutions appointed pursuant to the Office of the Superintendent of Financial Institutions Act.
Information respecting credit record	3. (1) A financial institution, credit bureau or federal corporation that intends to give information respecting an individual to a credit bureau, or to a credit grantor where the information is relevant to an interest of the credit grantor in determining whether to make a loan or grant credit to the individual, must first send to the individual:
	(a) a copy of the information;
	(b) the name and address of the credit bureau or credit grantor; and
	(c) the name or title of the person in the office of the credit bureau or credit grantor to whom the information is to be sent.
Information by facsimile or mail	(2) The information to be sent to an individual pursuant to subsection (1) may be sent by facsimile or first class mail to the latest facsimile number or address of the individual that is known to the financial institution, credit bureau or federal corporation.
Information to credit grantor	(3) A financial institution, credit bureau or federal institution shall not send the information mentioned in subsection (1) to the credit grantor or credit bureau until fifteen days after it has sent the information to the individual.
Objection included	(4) A financial institution, credit bureau or federal corporation mentioned in subsection (1) shall not send the information mentioned in that subsection to a credit grantor or credit bureau until fifteen days after the information has been sent to the individual and shall not send such information if, within fifteen days after the information is sent to the individual, the individual
	(a) makes an objection in accordance with section 4; or
	(b) notifies the financial institution, credit bureau or federal institution of an intention to make an objection in accordance with section 4 within a further fifteen days and makes such an objection within such further time;
	without also sending the objection as received from the individual.
Waiver	(5) An individual may provide a credit grantor with a written waiver, in the prescribed form, of the provisions of subsection (4), if
	(a) the individual is first provided, by the credit grantor, with an explanation, in the prescribed form, of the provisions of this Act; and
	(b) the waiver is stated to be given for the express purpose of expediting the granting of a loan or credit to the individual by a credit grantor named in the waiver.
Rest of Act to apply	(6) Notwithstanding any waiver of subsection (4), the other provisions of this Act shall continue to apply.
Objection by individual	4. If an individual, on receiving information pursuant to section 3, has reason to believe it is incorrect, the individual may send to the financial institution, credit bureau or federal corporation an objection consisting of:
	(a) the details of the information the individual believes to be incorrect and of the correct information as believed by the individual;
	(b) such evidence thereof as the individual wishes to include; and
	(c) the change the individual proposes should be made to the information.
Institution not to give information	5. (1) A financial institution, credit bureau or federal corporation that receives an objection from an individual pursuant to section 4 shall not,
	(a) without the prior written consent of the individual,
	(b) without a withdrawal in writing by the individual of the objection, or
	(c) unless first receiving a notice from the Superintendent pursuant to paragraph 6(3)(b),
	give the information covered by the objection to a credit grantor or credit bureau.
Response by financial institution	(2) A financial institution, credit bureau or federal corporation that receives an objection from an individual pursuant to section 4 shall, within fifteen working days of receiving it, advise the individual that
	(a) it accepts that the individual's objection is correct and undertakes to correct its own records;
	(b) it accepts that part of the individual's objection is correct and undertakes to correct its own records with respect to that part; or
	(c) it does not accept that the individual's objection is correct.
Complaint	6. (1) An individual who
	(a) has been advised according to paragraphs 5(2)(b) or (c), or
	(b) who believes a financial institution, credit bureau or federal corporation has contravened this Act with respect to information affecting the individual,
	may make a complaint in writing of the matter to the Superintendent.
Action by Superintenden t	(2) On receiving a complaint, the Superintendent may inquire into the matter and require the individual to provide further information and the financial institution, credit bureau or federal corporation to provide information, including copies of any record they may hold concerning the individual.
Order to correct record	(3) After inquiry, the Superintendent may
	(a) order the financial institution, credit bureau or federal corporation, or any credit grantor that is a financial institution or federal corporation and that the Superintendent has reason to believe has put on record incorrect information concerning the individual prior to the coming into force of or in contravention of any provision of this Act, to correct their records as specified by the Superintendent and shall advise the individual of the order; or
	(b) advise the individual and the financial institution, credit bureau or federal corporation or credit grantor that no reason to correct a record has been established by the individual.
Offences and penalty	7. The following are guilty of an offence and liable on summary conviction to a fine of not more than five thousand dollars:
	(a) an individual who knowingly gives false information in an objection under this Act;
	(b) an individual who, or financial institution, credit bureau or federal corporation that, knowingly gives false information to the Superintendent;
	(c) a financial institution, credit bureau, federal corporation or credit grantor that is a financial institution or federal corporation, that fails to respond to an individual as required by section 5;
	(d) a financial institution, credit bureau, federal corporation or credit grantor that is a financial institution or federal corporation that fails to provide a record to the Superintendent when required to do so as required by section 6;
	(e) a financial institution, credit bureau, federal corporation or credit grantor that is a financial institution or federal corporation that provides information to a credit grantor relating to an individual in contravention of subsection 3(4); and
	(f) a financial institution, credit bureau, federal corporation or credit grantor that is a financial institution or federal corporation that
	(i) has undertaken to an individual that it will correct its record pursuant to subsection 5(2), or
	(ii) has been ordered by the Superintendent to correct its record pursuant to section 6,
	and subsequently provides information to a credit bureau or credit grantor relating to an individual that is not consistent with the correction undertaken or ordered.
Regulations	8. The Minister of Finance may, on the recommendation of the Superintendent, make regulations
	(a) prescribing forms for the purpose of subsection 3(5); and
	(b) to facilitate the administration of this Act.

Bill C-367

BILL C-367