Equifax wiped out this B.C. man's credit score — and a little-known policy means he can't get it back

David Tregear says getting recognition was ne'er a problem, until the rejections started piling up. A car loan, recognition cards and much — each denied.

When helium checked his Equifax account, helium saw his people had been wiped to zero — without informing oregon explanation. 

"I was conscionable stunned," said the Victoria man. "I was like, what bash you mean I don't person credit? Are you kidding me?"

What followed was much than a twelvemonth of frustration. 

Tregear says helium begged Equifax to hole the occupation — sending documents, filing complaints, adjacent turning to national and provincial oversight bodies for help. Nothing worked.

Equifax refused to reconstruct his recognition people oregon explicate wherefore it dropped to zero, until Go Public started asking questions.

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Only past did the institution constituent to its little-known policy: If a recognition record sits inactive, the user whitethorn beryllium labelled "unscoreable" and their people reset to zero. Tregear says the past clip helium checked, before it disappeared, his people was astir a much respectable 700. 

He says it's existent that helium stopped utilizing recognition to debar falling into debt, but ne'er imagined he'd beryllium penalized for it.

Equifax told him it's a 2 twelvemonth cutoff, but won't accidental if that's existent for everyone.

Canada's different large recognition bureau, TransUnion, says it doesn't reset recognition scores.

A recognition people is simply a fig that typically ranges from 300 to 900 and shows lenders however apt you are to repay debt.

Tregear says the consequences person been superior — particularly since galore lenders trust solely connected Equifax.

WATCH | Reset to zero:

"This has to beryllium rectified somehow," helium said.

Equifax told him he'll person to rebuild his recognition people from scratch — a challenge, helium says, since helium can't get approved for recognition without one.

Serious flaws

Go Public has since recovered a large flaw successful user extortion rules — that determination are nary laws oregon oversight connected however recognition scores are calculated, leaving recognition bureaus to bash what they want.  

Consumer advocator Geoff White says that gives recognition bureaus excessively overmuch power, with nary transparency.

"A recognition people is simply a precise important portion of information. It shouldn't beryllium arbitrarily wiped retired done deficiency of usage of credit," said White, enforcement manager of the Public Interest Advocacy Centre, a non-profit that advocates for user rights. 

"The lawsuit is retired of luck," helium says. "This shows there's a spread successful Canada's user extortion strategy erstwhile it comes to credit."

Equifax says its website is wide astir however scores are calculated — citing factors similar outgo history, disposable recognition and nationalist records. But it besides says having antithetic scores from Equifax and TransUnion is "completely normal," due to the fact that each bureau uses "multiple scoring algorithms," and that "there are immoderate differences successful the calculations."

Equifax refused to reply Go Public's circumstantial questions astir Tregear's case, how it justifies deleting a consumer's long-standing recognition people owed to inactivity, oregon however that argumentation affects Canadians.

Instead, it sent a wide connection partially saying it takes "consumer concerns precise seriously" and "prides itself connected being a trusted steward of idiosyncratic data" and is "committed to maintaining the accuracy of each recognition data… successful compliance with applicable legislation." 

• See Equifax's response to Go Public

Tregear says the reset has near him stuck — incapable to get recognition oregon bargain a location — due to the fact that galore lenders lone cheque Equifax. He says each clip helium opened a complaint, Equifax closed it without resolving anything.

"They've ne'er reached retired to me," helium said. "I've ever had to telephone successful and with nary success. I started feeling defeated." 

Equifax's website mentions the policy, saying: "Sometimes there's not capable accusation successful your recognition record to supply a recognition score… This is not an indicator of atrocious recognition history."

But White, and different recognition experts, archer Go Public that's conscionable not the case. 

"A zero recognition people means you're starting from scratch," helium said. "Credit scores power not lone the determination to lend oregon not lend… it affects your quality to get a bully involvement complaint connected your mortgage."

The Financial Consumer Agency of Canada (FCAC) besides flags the contented connected its website: "It's intolerable to cognize precisely however overmuch your recognition people volition alteration based connected the actions you take. Credit bureaus and lenders don't stock the existent formulas it uses to cipher recognition scores." 

Go Public asked Equifax astir transparency concerns. It didn't respond.

Bureaucratic maze

Tregear says trying to get assistance felt similar being stuck successful a bureaucratic maze.

He's written letters, made countless telephone calls, and adjacent filed complaints with some provincial and national regulators — but got nary help.

"Everybody was conscionable referring maine backmost to idiosyncratic other oregon referring backmost to the aforesaid idiosyncratic that referred maine to them," Tregear said. 

He tried the Office of the Superintendent of Financial Institutions, which referred him to the FCAC, which said it doesn't grip complaints astir recognition bureaus. 

Then helium was sent to Consumer Protection B.C., which said it was extracurricular their mandate, and helium should interaction the privateness commissioner — but it wasn't wide whether that meant the national oregon provincial office.

"It's been crazy," Tregear said.

White says erstwhile things spell incorrect — similar successful Tregear's lawsuit — the complaints process tin beryllium "tortuous."

He says Tregear's lawsuit shows the maze consumers look with nary wide way forward. 

"It tells maine there's a deficiency of common-sense rules," said White. "This is simply a large problem."

He says Ottawa tin — and should — measurement successful and make accordant nationalist standards by regulating recognition bureaus nether the Bank Act, alternatively than leaving oversight to provinces with a patchwork of regulations.

While banks autumn nether national regulation, recognition bureaus are overseen by provincial agencies — and rules tin alteration depending connected wherever you live.

In general, provinces marque definite recognition reports travel basal rules similar getting consent earlier idiosyncratic accesses your report, addressing mendacious accusation and overseeing privateness similar however idiosyncratic information is collected, utilized and shared. 

But recognition scores are a antithetic story. No authorities bureau regulates however they're calculated — oregon whether they're fair. Credit bureaus, which are backstage companies, marque their ain rules.

"Credit reporting… needs an overhaul and we request wide national rules that let for accountability and much transparency successful presumption of however this process works and however life-affecting decisions are made," said White.

Go Public asked Finance Minister François-Philippe Champagne if helium plans to measurement successful — but got nary response. The ministry would lone accidental recognition bureaus aren't nether national control.

'Punished for surviving debt-free'

Equifax says it is already "a highly regulated business… governed by some applicable recognition reporting and privateness laws successful Canada. To support the integrity of our processes, procedures and to guarantee we comply with applicable law, we bash not let for nationalist remark connected user inquiries."

After Go Public brought Tregear's lawsuit to their attention, 2 B.C. agencies — Consumer Protection B.C. and the provincial privateness commissioner — reached retired to him offering to investigate.

He'd contacted the incorrect privateness bureau — the national 1 — by mistake, and Consumer Protection B.C. had wrongly turned him away. That bureau present admits it "overlooked" immoderate jurisdictional issues and says it's reviewing its processes to marque definite it doesn't hap again.

But Tregear says helium doubts he'll get the assistance helium needs — particularly with Equifax's little-known argumentation inactive successful place.

"I'm being punished for surviving debt-free," helium said.