What is a 609 letter in Canada?

Understanding Credit Report Disputes in Canada: Your Right to Accuracy (and What a 609 Letter Isn’t)

Inaccurate information lurking within your credit report can have a significant and detrimental impact on your financial life. From higher interest rates on loans and mortgages to outright denials of credit applications, these errors can cost you dearly. Thankfully, in Canada, you have the right to challenge these inaccuracies and actively work to protect your creditworthiness. While the term “609 letter” is commonly used in the United States, it’s crucial to understand that it doesn’t directly apply to the Canadian credit reporting system.

So, what exactly is a 609 letter, and why doesn’t it work the same way north of the border? In the US, a 609 letter typically refers to a dispute letter based on a provision of the Fair Credit Reporting Act (FCRA), specifically Section 609. This section outlines the consumer’s right to request information from credit reporting agencies regarding the sources of their credit information. The idea is that by challenging the credit bureau to provide verifiable documentation, errors may be removed due to lack of evidence.

Canada operates under different laws and regulations. We have our own legislation governing credit reporting, primarily the Personal Information Protection and Electronic Documents Act (PIPEDA) and provincial equivalents. While PIPEDA guarantees your right to access and correct your credit report, it doesn’t have a direct equivalent to Section 609 of the FCRA.

This doesn’t mean you’re powerless in Canada. You absolutely have the right to dispute inaccurate information on your credit report.

Here’s how to effectively dispute errors on your Canadian credit report:

1. Obtain Your Credit Report: Request a copy of your credit report from both Equifax Canada and TransUnion Canada. You are entitled to a free copy annually or if you’ve been denied credit. Review both reports meticulously, looking for any discrepancies.
2. Identify Errors: Pinpoint the specific inaccuracies on your credit report. This might include incorrect account balances, late payment notations that are incorrect, accounts that don’t belong to you, or outdated information.
3. Gather Supporting Documentation: Collect any documentation that supports your claim. This could include bank statements, payment records, contracts, or any other evidence that proves the information on your credit report is incorrect.
4. Write a Formal Dispute Letter: This is the most crucial step. Your letter should be clear, concise, and professional. Include the following information:
   • Your full name, address, and date of birth.
   • Your social insurance number (SIN) – While not mandatory, including it can help the credit bureau accurately identify your file.
   • Your account number(s) as they appear on the credit report.
   • A detailed description of the specific information you are disputing.
   • A clear explanation of why you believe the information is incorrect.
   • Copies of your supporting documentation (never send originals).
   • A clear request that the credit bureau investigate and correct the information.
5. Send the Letter via Registered Mail: Send your dispute letter to both Equifax Canada and TransUnion Canada via registered mail with return receipt requested. This provides proof that the credit bureau received your letter.
6. Follow Up: Credit bureaus are required to investigate your dispute within a reasonable timeframe (typically 30-45 days). If you don’t hear back within this timeframe, follow up to ensure they are actively investigating your claim.
7. Review the Results: Once the credit bureau has completed its investigation, they will notify you of the results. If they have corrected the error, review your credit report again to ensure the changes are accurate. If they deny your dispute, you have the right to add a statement to your credit report explaining your version of the events.

Key Differences from the US “609 Letter” Approach:

• Focus on Factual Accuracy: In Canada, your dispute should focus on proving the factual inaccuracy of the information. Simply requesting verification without providing evidence of the error is unlikely to be successful.
• Emphasis on Documentation: Strong supporting documentation is crucial for a successful dispute in Canada.
• No Guaranteed Automatic Removal: Unlike some interpretations of the US 609 letter, there’s no guarantee that information will be automatically removed if the credit bureau can’t immediately verify it. They will investigate and make a determination based on the evidence provided.

In conclusion, while the term “609 letter” is not directly applicable in Canada, the principle of challenging inaccurate credit information remains paramount. By understanding your rights under Canadian law and following the proper dispute process, you can effectively protect your creditworthiness and ensure your financial future remains secure. Remember to be proactive, document everything, and persistent in your pursuit of accuracy.

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