The Limitations Act does not restrict the timeframe for reporting consumer debts under the Consumer Reporting Act (“CRA”).
The Applicant in Grant v. Equifax sought an order requiring two consumer reporting agencies to remove debts over two years old on his credit report pursuant to the Limitations Act.
The Applicant’s position was quite clever, especially for a self-represented litigant:
[10] According to the Applicant, the two year limitation period for commencing an action under the Limitations Act should apply to the time frame for reporting consumer debts under the CRA. The applicant argues that the best evidence of the existence of a disputed debt is when judgment is obtained for that debt.
[11] The Applicant explains that is unfair for consumer debts over two years old to be reported on consumer credit reports. This is because after the two year limitation period under the Limitations Act has expired, the debtor cannot bring an action to collect the debt. Therefore, a debt that can no longer be collected should not be reported on a credit report.
[12] Section 9(1) of the CRA requires the consumer reporting agency to adopt procedures necessary to ensure accuracy and fairness in the contents of its consumer reports. The Applicant submits that since no court action can be commenced to recover debts over two years old, any disputed debts over two years old recorded on consumer reports are not the most accurate record of the debt. He explains that for reported debt over two years old, the most accurate record of such a debt is a debt that has been confirmed by an order of a court. Therefore, the Applicant argues that the consumer reporting agencies are not in compliance with s. 9(1) of the CRA when they report consumer debts over two years old which have not been confirmed by the order of a court.
What the Applicant failed to appreciate is that the Limitations Act has no application to the CRA. The statutes have entirely different, unrelated purposes: the Limitations Act limits the commencement of proceedings in respect of claims; the CRA governs the reporting of debts on consumer reports. As Justice Barnes noted, there is nothing in the Limitations Act that extends its application to the CRA, nor is there anything in the CRA which contemplates the application of the Limitations Act. If it was the intention of the legislature that the provisions of the Limitations Act apply to the CRA, it would have expressly stated so.
