What Is It?
Credit repair companies that promise to “fix” your credit report for a fee are among the most common consumer scams in Canada. The fundamental truth: accurate negative information on your credit report cannot be removed by a third party — only time removes it. What these companies typically offer — disputing accurate information, filing nuisance complaints, or creating a “new credit identity” — either doesn’t work or is illegal.
The only legitimate credit repair is disputing genuinely inaccurate information, which you can do yourself for free.
What Can and Cannot Be Removed
Can be removed:
- Information that is factually inaccurate (wrong account number, wrong late payment date, account that isn’t yours)
- Information that is past the retention period (typically 6–7 years from the date of delinquency)
- Duplicate entries for the same debt
- Paid collections that some bureaus remove upon request
Cannot be removed:
- Accurate late payments, collections, judgments, or bankruptcies within the retention period
- Any negative item that legitimately belongs to you
A credit repair company that promises to remove accurate negative information is either lying to you or planning to file false dispute claims — which is fraud.
The Retention Periods
In most provinces:
- Late payments, collections, judgments: 6 years from the date of delinquency
- Bankruptcy (Chapter 11 equivalent — proposal): 3 years after discharge
- Bankruptcy (full): 6 years after discharge (7 years if more than one bankruptcy)
- Inquiries: 3 years
After these periods, the item must be removed under provincial credit reporting legislation.
How to Dispute Errors Yourself (Free)
Step 1 — Get your free credit reports. Order from Equifax (equifax.ca) and TransUnion (transunion.ca) — both must provide a free report by mail. Online access may require enrollment in a paid service, but the free report by mail is your right.
Step 2 — Identify errors. Compare every account, payment history, and inquiry. Look for accounts you don’t recognize, incorrect late payment dates, debts you’ve paid marked unpaid, or items past the retention period.
Step 3 — File a dispute. Submit a dispute directly to Equifax or TransUnion with supporting documentation (payment confirmations, account statements). The bureau has 30 days to investigate and must correct or delete inaccurate information.
Step 4 — Add a consumer statement. If the bureau investigates and disagrees with your dispute, you can add a 100-word consumer statement to your file explaining your side — visible to any lender who pulls your report.
What Most People Don’t Know
- “Credit building” products from credit repair companies are often themselves predatory. Secured credit cards, credit builder loans, and similar products are legitimate, but if a credit repair company is selling them to you at inflated fees, compare to what your own bank or a credit union offers directly.
- Charging upfront fees for credit repair services may be illegal in Ontario and BC — provincial consumer protection acts require that a service be provided before fees are charged for certain services.
- A credit repair company cannot negotiate with creditors on your behalf without a licence. In most provinces, debt settlement requires a registered credit counselling or debt settlement licence.
Frequently Asked Questions
I paid a credit repair company $800 and they did nothing. Can I get my money back?
Yes — file a complaint with your provincial consumer protection office and the company’s provincial consumer affairs regulator. If the company took money without performing the promised service, this may be fraud. Also dispute the charge with your credit card company. File a complaint with the RCMP’s Canadian Anti-Fraud Centre at antifraudcentre-centreantifraude.ca.
Is there any legitimate service that helps with credit repair?
Non-profit credit counselling agencies (such as Credit Counselling Canada members) provide free or low-cost advice on managing debt and improving credit. They don’t charge large upfront fees and don’t promise to remove accurate information. Find a licensed agency at creditcounsellingcanada.ca.
My identity was stolen and someone has accounts on my report I didn’t open. Is this a credit repair situation?
No — identity theft is handled differently. File a police report, submit a fraud alert to both bureaus, and dispute the fraudulent accounts with documentation of the identity theft. The bureaus must investigate and remove fraudulent accounts. This is free and does not require a credit repair company.
How long does a dispute investigation take?
Equifax and TransUnion must investigate disputes within 30 days in most circumstances. If the investigation reveals the information is inaccurate, the correction must be made promptly.