General
Is Consent Required To Report To Credit Bureaus?
If a tenant does NOT OWE A DEBT, then YES, consent is required to report rent payments to Credit Bureaus in Canada. Lutendi suggests adding notice and consent clauses to all tenancy Applications and Leases. The Lutendi platform mandates a tenant who does NOT OWE A DEBT to log in, verify ID, and check a consent box to report rent payments to Credit Bureaus. If the tenant doesn't log in and check the consent box, the record remains internal to the housing provider’s records and isn't disclosed or shared. If a DEBT IS OWED by the tenant, then NO, consent isn't required to report the debt to Credit Bureaus for the purpose of collecting the debt owed.
How Do Tenants Benefit From Using Lutendi?
Lutendi offers numerous advantages for tenant members. Tenants can build credit by paying rent and create a Tenant Record for future housing preferences. Lutendi assists tenants in positively impacting their credit reports, helps newcomers to Canada build a credit file, and aids those with thin credit files. Lutendi's mission is to provide a seamless rental reporting solution that motivates timely payments, strengthens tenant-landlord relationships, and enhances creditworthiness, benefiting all stakeholders in the rental ecosystem.
Is Tenant Data Disclosed To Lutendi?
No. When a housing provider uses the platform to create a Lease Record on Lutendi, they aren't disclosing or sharing tenant data with Lutendi. The Office of the Privacy Commissioner of Canada has clarified that transferring data to a cloud-infrastructure provider like Lutendi is considered a transfer for processing, and the organization remains in control of the information.
How Are Credit Bureaus Involved?
Equifax and TransUnion are Credit Bureaus. They typically hold information about payment histories, which might include payment histories from tenancies reported by housing providers and tenants using Lutendi. Lutendi currently only reports rent to Equifax Canada.
Landlords May Use Lutendi To Report To Credit Bureaus
In Canada, landlords commonly report debts to collection agencies and share that information with Credit Bureaus. Lutendi allows landlords of all sizes to report debts and positive rental histories.
Accuracy Of Data
Lutendi verifies all users' identification before allowing data contribution. Users must report only factual information and use Lutendi for a valid purpose.
Additional Protections For Tenants
Lutendi offers tools for tenants to receive notifications, access and review records, and if needed, dispute inaccurate information. There's a grace period before data is shared with Credit Bureaus, allowing tenants time to review and verify the accuracy of information.
Summary for Ontario Landlords on Reporting to Credit Bureaus
Policy Perspective
The RTA does not support the idea that debts should not be reported to a Credit Bureau unless the LTB has first ruled on them. A valid debt remains valid even if the LTB hasn't held a hearing regarding it. However, if the LTB rules that there isn't a debt or that the amount is different, landlords may face liability if they reported inaccurate information. The tenant's recourse would be through legal actions outside of the RTA.
Lutendi's Role
Lutendi does not maintain any “tenant lists”. It facilitates the reporting of both positive and negative rental history to Credit Bureaus, provides free tenant access to Lease Records, and offers multiple dispute mechanisms. As long as the information reported is accurate, Lutendi has numerous automated protections and guidance in place to ensure landlords, property managers, and tenant members are protected and compliant with relevant legislation.
Jurisdiction of the Landlord and Tenant Board (LTB)
The LTB does not have jurisdiction over the reporting of a debt to a Credit Bureau. However, the information reported must be accurate. Reporting to Credit Bureaus is under the jurisdiction of the Ontario Ministry of Government and Consumer Services, via the Ontario Consumer Reporting Act (“OCRA”), and the Office of the Privacy Commissioner of Canada, under PIPEDA. The Ontario Residential Tenancies Act (“RTA”) does not have provisions regarding the reporting of debts to Credit Bureaus. The RTA and the LTB do not have authority over such reporting. Sending a debt to a Credit Bureau does not violate any section of the RTA, its Regulations, or Ontario’s standard lease. Claims related to such conduct fall outside the jurisdiction of the RTA and the LTB.
Tenant Consent
If a tenant provides consent, that's all that's needed for reporting to Credit Bureaus. Lutendi recommends adding specific clauses to all Applications for Tenancy and Lease templates.
Reporting without Tenant's Consent
Under the Federal Personal Information Protection and Electronic Documents Act (“PIPEDA”), landlords can report certain information even without the tenant's consent. Disclosure is allowed without the tenant’s knowledge or consent pursuant to: Section 7(3)(b) for the purpose of collecting a debt owed by the individual to the organization; Section 7(3)(d.1) for investigating a breach of an agreement or a contravention of Canadian or provincial laws; Section 7(3)(d.2) for detecting or suppressing fraud or preventing potential fraud.
Accuracy of Data
Lutendi verifies all users’ identification before allowing data contribution. Users agree to report only factual information for a valid purpose or risk personal liability. Lutendi maintains a record of anyone who contributes or views data.
Additional Protections for Tenants
Lutendi provides tools for tenants to receive notifications, access and review records, and dispute inaccurate information. A grace period is built into the platform before data is shared with Credit Bureaus, allowing tenants time to review and verify the accuracy of information.
Disputes
Partners
Residents possess the right to contest any information submitted by our partners. Our team manages these disputes and may request supplementary information from our partners to verify accuracy before making any amendments to credit bureau records. We reserve the authority to terminate services to any partner(s) in instances of recurring disputes stemming from the provision of inaccurate or misleading data.
Residents
As a resident, you will have the ability to observe real-time updates to your credit reports. We advocate for monthly monitoring of these reports to verify the accuracy of your rental payment history. Should you find discrepancies in the information reported to credit bureaus, you are empowered to initiate a dispute through the same portal used for registration. Our team will diligently review the contested details and, if necessary, make corrections with the credit bureaus, which will be reflected in your credit reports. To fully benefit from our service, we recommend engaging with your housing provider to address any issues related to missed or delayed payments proactively.