Regulation - LGIC
Consultation on Regulatory Proposals to Implement Amendments to the Consumer Reporting Act
Regulation Number(s):
R.R.O. 1990, Reg. 177
Instrument Type:
Regulation - LGIC
Bill or Act:
Consumer Reporting Act
Summary of Proposal:
Consumer reporting agencies, often referred to as credit bureaus, are regulated under the Consumer Reporting Act (CRA). These agencies generate and disclose consumer reports and scores (often called credit reports and credit scores) to consumers and credit granting agencies.
The CRA was amended in December 2023 under the Better for Consumers, Better for Businesses Act, 2023. Certain amendments to the CRA came into force when the Better for Consumers, Better for Businesses Act, 2023 received Royal Assent, including the amended inspection provisions and the authority of the Registrar to establish written policies regarding the interpretation, administration, and enforcement of the CRA. Other sections are not in effect and come into force upon proclamation. These include requirements pertaining to security freezes, consumer score disclosures and explanatory statements.
The Ministry of Public and Business Service Delivery and Procurement is seeking feedback on a consultation paper outlining regulatory proposals that support the implementation of the unproclaimed legislative changes to the CRA. The ministry is considering specific rules to implement new or updated requirements for consumer reporting agencies, which includes providing consumer reports, consumer scores, and security freezes, and publicizing information on their respective websites. Please note that the paper contains plain language descriptions of the topics covered by the regulatory proposals, which may differ from the language that appears in the final regulations.
The ministry is seeking feedback on the proposals and the questions posed in the attached consultation paper to help inform the development of regulations. Specifically, these proposals include:
1. Prescribing consumer reporting agencies for the purposes of complying with certain requirements.
2. Setting maximum fees that may be charged by consumer reporting agencies each time a consumer requests a consumer report or a consumer report and score in excess of once per month electronically or twice per year non-electronically.
3. Publishing information pertaining to consumer scores on the websites of prescribed consumer reporting agencies.
4. Setting timelines by when prescribed consumer reporting agencies will be required to place or suspend a security freeze.
5. Temporarily exempting prescribed consumer reporting agencies from suspending a security freeze.
You may submit your comments by responding directly to the Regulatory Registry posting or by sending your comments by email to consumerpolicy@ontario.ca no later than November 25, 2024.
The CRA was amended in December 2023 under the Better for Consumers, Better for Businesses Act, 2023. Certain amendments to the CRA came into force when the Better for Consumers, Better for Businesses Act, 2023 received Royal Assent, including the amended inspection provisions and the authority of the Registrar to establish written policies regarding the interpretation, administration, and enforcement of the CRA. Other sections are not in effect and come into force upon proclamation. These include requirements pertaining to security freezes, consumer score disclosures and explanatory statements.
The Ministry of Public and Business Service Delivery and Procurement is seeking feedback on a consultation paper outlining regulatory proposals that support the implementation of the unproclaimed legislative changes to the CRA. The ministry is considering specific rules to implement new or updated requirements for consumer reporting agencies, which includes providing consumer reports, consumer scores, and security freezes, and publicizing information on their respective websites. Please note that the paper contains plain language descriptions of the topics covered by the regulatory proposals, which may differ from the language that appears in the final regulations.
The ministry is seeking feedback on the proposals and the questions posed in the attached consultation paper to help inform the development of regulations. Specifically, these proposals include:
1. Prescribing consumer reporting agencies for the purposes of complying with certain requirements.
2. Setting maximum fees that may be charged by consumer reporting agencies each time a consumer requests a consumer report or a consumer report and score in excess of once per month electronically or twice per year non-electronically.
3. Publishing information pertaining to consumer scores on the websites of prescribed consumer reporting agencies.
4. Setting timelines by when prescribed consumer reporting agencies will be required to place or suspend a security freeze.
5. Temporarily exempting prescribed consumer reporting agencies from suspending a security freeze.
You may submit your comments by responding directly to the Regulatory Registry posting or by sending your comments by email to consumerpolicy@ontario.ca no later than November 25, 2024.
Analysis of Regulatory Impact:
The Ministry of Public and Business Service Delivery and Procurement is conducting a Regulatory Impact Analysis.
The proposed regulations, if approved, may have limited transition costs for a small subset of the consumer reporting agencies registered under the Consumer Reporting Act. In February 2023, the Quebec government brought similar requirements into effect, which may reduce the total cost required to operationalize the proposed changes in Ontario. There is no anticipated cost impact on the broader Public Service or non-profit sectors.
The ministry is seeking feedback from stakeholders about the potential cost impacts and cost savings associated with the proposed changes.
The proposed regulations, if approved, may have limited transition costs for a small subset of the consumer reporting agencies registered under the Consumer Reporting Act. In February 2023, the Quebec government brought similar requirements into effect, which may reduce the total cost required to operationalize the proposed changes in Ontario. There is no anticipated cost impact on the broader Public Service or non-profit sectors.
The ministry is seeking feedback from stakeholders about the potential cost impacts and cost savings associated with the proposed changes.
Further Information:
Consultation Paper
Consumer Reporting Act, R.S.O. 1990, c. C.33 (ontario.ca)
Better for Consumers, Better for Businesses Act, 2023, S.O. 2023, c. 23 - Bill 142 (ontario.ca)
Credit reports | ontario.ca
Proposal Number:
24-MPBSD017
Posting Date:
October 10, 2024
Comments Due Date:
November 25, 2024
Contact Address:
56 Wellesley St W, 6th Flr, Toronto, ON M7A 1C1