Consumer Protection

What is Credit?

When someone lets you pay for something later, instead of before or at the time you buy or rent it, this is called giving you credit or “extending” credit to you.

Here are some examples of getting credit:

  • A bank gives you a car loan.
  • A furniture store gives you 6 months to pay for a couch.
  • The hydro company bills you for electricity you have already used.

What is a Credit Report?

A credit report is a detailed list of your credit and bill paying history, and other information about you. In Ontario, the law calls them “consumer reports”. But most people call them credit reports.

Businesses usually want to see your credit report before giving you credit or billing you on a regular basis. Your credit report helps them to decide if you are a good credit risk and if you are likely to pay your bills or rent on time. This is often called a “credit check”. If your credit report is bad, you may have a hard time with things like getting a credit card, borrowing money, or renting an apartment.

In Ontario, there are laws that protect consumers in many areas.  The main law is the Consumer Protection Act, although there are specific laws that relate to collection agencies, electricity contracts, motor vehicle dealers and discriminatory business practices.  These laws provide for rights and protection for consumers.

We will not assist with bankruptcy.

Resources