What details can banks keep about my consumer proposal?

_{consumer proposal, credit report, Ontario}

Filing a consumer proposal in Canada means your payment terms, creditors, and acceptance status can impact your credit report for up to six years. Banks track payment habits, affecting future credit. If concerned, discuss bank policies on consumer proposal info directly for clarity.

_{Impact of consumer proposal on your credit report details.}

Question

What info can a bank retain about my consumer proposal? I want to know what details a bank might keep on file regarding my consumer proposal.

From: Anonymous Question, Ontario (ON)

Debt Insiders Answer

Filing a consumer proposal in Canada means banks and lenders may keep track of several details about your proposal. This often includes the filing date, the payment terms you’ve suggested, the creditors involved, and any communication about whether the proposal was accepted or rejected. Your credit report will also show the consumer proposal, signaling to banks that you’re in the midst of addressing financial challenges, which can affect your credit standing for a while—generally up to three years after you’ve finished paying, or up to six years from when you filed, based on the situation.

Banks also monitor your payment history under the consumer proposal, noting both on-time and missed payments. This info can play a role in their future lending decisions and impact your chances of getting credit after the proposal is wrapped up. If you’re worried about how a bank might use this information down the road, it’s a good idea to chat with them directly to understand their specific policies on keeping consumer proposal details.

From: Insider Scott

Office of the Superintendent of Bankrupty (OSB) Answer

Banks can retain the following information about your consumer proposal:

1. Your identification details, including name and address, as outlined in the Bankruptcy and Insolvency Act (BIA), RSC 1985, c. B-3, Section 49.
2. The amount of your debts at the time of the proposal and the details of creditors involved, as per Section 66.34 of the BIA.
3. The terms of the consumer proposal, including payment amounts and duration, referenced in the BIA, Section 66.33.
4. Confirmation that a proposal has been filed and the outcome, as per the notification requirements in the BIA, Section 66.16.

Additionally, banks may store related documentation and communication logs regarding your consumer proposal for their records, influenced by their internal policies and the requirements under the Personal Information Protection and Electronic Documents Act (PIPEDA).

From: This answer is provided by scanning the OSB Bankruptcy & Insolvency Act and related directives

Related Questions

Here are the top 5 most frequently asked questions related to the impact of a consumer proposal on an individual’s financial and credit situation, particularly in the context of what information a bank can retain:

1. Will a consumer proposal affect my mortgage renewal?

A consumer proposal can make it more difficult to renew your mortgage, and you may face higher interest rates or stricter terms.

2. How long does a consumer proposal stay on my credit report?

A consumer proposal remains on your credit report for three years after it is completed.

3. Can I get a new mortgage while in a consumer proposal?

While it is challenging, it is possible to get a new mortgage during a consumer proposal, but you will likely face higher interest rates and stricter conditions.

4. Will I lose my home if I file a consumer proposal?

Generally, you do not lose your home if you file a consumer proposal, provided you continue to make your mortgage payments and are current on your property taxes.

5. Can I rebuild my credit after a consumer proposal?

Yes, you can rebuild your credit after a consumer proposal by making timely payments, attending financial counselling sessions, and applying for new credit responsibly once the proposal is completed.

References

_{Table of article references}