P.E.I. businesses must notify customers of credit checks
Gail Harding | CBC News | Posted: August 19, 2016 9:00 AM | Last Updated: August 19, 2016
Credit checks can negatively affect credit rating says North Rustico man
Steve Arnold of North Rustico, P.E.I., is frustrated after Eastlink did a credit check without notifying him first.
He said he wasn't opposed to the credit check, but it is the law on P.E.I. that while any business extending credit to a customer can do a credit check, they must notify the customer first either verbally, in writing or through the small print in an application or contract.
Eastlink admitted it made a mistake by conducting the credit check without notifying Arnold.
Credit check impacts score
Arnold said people should be aware the checks can negatively impact their credit rating.
"What made it particularly difficult for me this year is that we're starting a new business, my business partner and I, and we are applying for bank loans, and a credit check on somebody's report, whether you've got good credit or bad credit, a credit check is a negative," said Arnold.
"It means you're out there looking for credit and potentially it could mean to a lender that you're overextending on your credit. So that's what made me a little bit upset, was the timing of everything. Despite that it shouldn't have happened in the first place."
The provincial government said it is up to the individual to make sure they check their credit rating and make sure everything is in order and recommend it be done once a year.
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