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Jan 03, 2017

Can Equifax keep your old debts on your Credit Report?

You have financial difficulties. You stop paying your debts. More than 2 years have passed. The Ontario Limitations Act says that your creditors can no longer sue you for payment of these old debts. But these old debts continue to show up on your credit bureau. Is that fair? Is there anything that you can do to improve your credit?

That was the question that Mr. Grant asked the Ontario Court of Appeal in this 2016 case. And the Court unanimously confirmed that Equifax and other debt reporting companies can leave old debts on your credit bureau; even if these debts are more than 2 years old and are 'statute barred' under the Ontario Limitations Act. In fact, the Court of Appeal confirmed that the Ontario Consumer Reporting Act expressly allows credit reporting companies to report debts (for which there is no Court ordered judgment to pay) for up to 7 years.

This means that your old debts will continue to show up on your credit bureau - even if it is too late for your creditors to sue you to try to collect these old debts from you .