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SCENARIO:
There were two roommates sharing the cost of monthly rent with Person A listed as a principal tenant in the Rental Agreement. However, conflict started to occur between these two roommates soon as the tenancy started, due to the difference in their living styles. As a result, Person A reported to the Landlord that she wouldn't renew the tenancy of 1-year fixed term when it expired. She also clarified to the Landlord that if Person B continued to stay in the rental unit, Person B should become the principal tenant after her moving out of the unit. Consequently, the last month rent deposit was used towards the last month rent prior to her moving. Then, Person B started paying rent persistently late and eventually not paying at all. Notwithstanding of Person A's consistent denial of not being a principal tenant anymore, the Landlord still made phone calls to her from time to time, insisting her obligation to pay the outstanding rent arrears still. The non-payment of rent arrears was finally brought to the Board, and a judgement was made under the name of Person B. One day, Person A acknowledged that her credit status was negatively impacted by the Landlord's reporting this outstanding amount under her name, as soon as she was notified by the collection agency about this debt.
Now what can Person A do to have this credit reporting error corrected?
How can this incorrect credit reporting affect Person A negatively in this case?
- this may jeopardize her chance of obtaining a loan or debt when necessary;
- the approval of mortgage may be rejected or delayed (she may loss when closing or/and money, especially in our current hot housing market);
- the amount of her loan may be reduced due to her credit status;
- higher interest rate can be applied to her loan with respect to her current credit position;
- the employment opportunity may be affected, because some employers in certain industries will look at the candidate's credit when hiring.
What action(s) can Person A take in order to resolve this incorrect credit reporting?
- she can first write to the credit reporting agency, ie. Equaifax, TransUnion, etc. so as to explain the reasons of the occurrence of incorrect credit reporting in support of strong and adequate evidence or/and facts;
- if the first step is rejected, Person A can write a letter to the Landlord clarifying his/her incorrect credit reporting in relation to the outstanding amount of rent arrears under her name;
- if the second step is still rejected, Person A can file a complaint against the credit reporting agency in the Ministry of Consumer Protection for this credit error, pursuant to the Consumer Reporting Act.
What is recommended to Person A as to how to proceed with this complaint?
Of course, there is nothing wrong if she decides to file the complaint on her own. But it is not recommended for the following reasons:
- An average person may just summarize the facts without addressing the main issue of the case;
- Without proper legal training, an average person may not be able to address the main issue(s), represent evidence in a logical manner that can be easily understood & followed, and incorporate our current legislation(s) into the analysis and reasoning of the case as to make the points legally valid.
As a result, the request to correct the credit error or/and the complaint can be denied. Therefore, it should be wise to hire a legal professional to have it done properly so as to restore your credit status as soon as possible.
The above-mentioned incorrect credit reporting is one of many examples in our daily situation!
Disclaimer: This information is not intended to be construed as a legal advice, but strictly for information only in this entire website. Please contact Trustworthy Legal Service for your independent legal advice in your particular situation. The first consultation is also required prior to my retainer of your case.
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