5 Considerations When Selecting a Credit Reporting Agency

Selecting a credit screening company, also known as a Consumer/Credit Reporting Agency (CRA), can be a difficult process. Choosing a CRA which is compliant with both Federal and Provincial Legislation is paramount, to ensure consumer rights are protected. Information and data security measures should be explored to safeguard the protection of personal information. There are five key considerations when selecting a reputable, registered and compliant agency.

1. COMPLIANCE WITH FEDERAL PRIVACY LEGISLATION

Compliance with the Personal Information Protection and Electronic Documents Act (PIPEDA) and the proposed Consumer Privacy Protection Act (CPPA) is essential for Credit Reporting Agencies. The fair information principles under the applicable legislation must be adhered to by a CRA. The principles are as follows:

• Public Privacy Policy
• Transparency
• Privacy Management Program
• Security Safeguards
• Limited Use, Disclosure and Retention
• Consent
• Limiting Collection
• Accountability
• Accuracy
• Identifying Purposes

2. LEGISLATION AND REGISTRATION FOR A CREDIT REPORTING AGENCY

In Canada, commercial and consumer credit reporting is regulated by Provincial Legislation, with each Province having laws outlining practices for Credit Reporting Agencies. The agency you select must be registered in each of the provinces to do business and requires a license under the applicable Credit Reporting Acts. The Fair Credit Reporting Act, although not a Canadian Federal Law, is a US law that regulates the collection, distribution and use of consumer information and has implications for Canadian businesses that operate in U.S.

3. SECURITY MEASURES

Information and data security should be a priority in selecting a Credit Reporting Agency. Ensure the company you choose has a data security policy in place. Look for an agency which offers a Secure Information Exchange. Key security measures should include multi-factor authentication for authorized personnel and utilize private, and multi-layered firewalls. Security measures must incorporate all current Federal and Provincial legislation.

4. EXPERIENCE

Select a Credit Reporting Agency that has been in the business for a significant period. With a well-established Credit Reporting Agency, you will receive reports completed by experienced investigators who are registered under Provincial Legislation. Due diligence analysts who specialize in your industry will guarantee that you will receive the reporting information which is most important to you.

5. SUPPORT

Service and communication with your CRA is key when you are facing time constraints and in understanding the information you receive in a report. Being able speak directly to the person who completed your report who is qualified to answer your questions is helpful in the process. This type of support comes only from an investigative agency, not a data-based agency which re-sells historical information.