Equifax report frustrates broker

Equifax report frustrates broker

Equifax report frustrates broker One broker is frustrated by negative Equifax reports that he believes aren’t a true indication of clients’ credit health.

“Recently all the cellular phone companies – Rogers and Bell – have been reporting their accounts on Equifax and in my opinion these aren’t revolving accounts that should be reported to the credit bureau,” John Panagakos of Dominion Lending Centres Home Financial told MortgageBrokerNews.ca. “So you have a dispute with Rogers, something happens you can’t pay it or you’re in dispute – boom – they go on the credit bureau, you get (a negative report) and it affects your total credit rating … I don’t know why they have the right to do this.”

Cellular companies have been reporting non-payments to Equifax since this summer and it is becoming just another roadblock in an increasingly frustrating environment of ever-tightening lending guidelines. And it can be the difference in a client attaining a mortgage or not.

“In some cases someone could have perfect credit and because they got into a big dispute with Rogers or Telus or, in some cases, Bell – they’re sometimes ruthless,” Panagakos said. “(The client) may oppose a bill, not pay it and get (reported).”

Panagakos, who says he doesn’t like it from a consumer protection standpoint, has started advising clients on the importance of dealing with disputes in a manner that will not negatively affect credit.

 “I tell my clients if they have a dispute with a phone bill, you pay it under protest and then you write to them, you write to the ombudsman, you go to consumer protection agencies, the CRTC, you file a complaint; you do everything to protect yourself,” Panagakos explains. “Even with your credit cards: You pay it and then you fight it because they can report you.”
  • Sheldon 2014-01-24 8:31:08 AM
    This is why they have companies like Canada Credit Fix. They deal with Rogers and Telus messes all the time. If you want these fixed call 1-866-530-3646 or go to www.canadacreditfix.com
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  • Bob 2014-01-24 8:32:48 AM
    Hi John,
    The phone companies may be reporting to Equifax, but the repayment history etc is not being accounted for when determining a clients FICO/Beacon score. That being said, when was the last time you saw a lender overlook derogatory history on the bureau and not say anything.
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  • Jimmy the broker 2014-01-24 8:36:48 AM
    Agree with John here and I have a few comments about Equifax , credit reporting in Canada and bank/lender policies.

    The smallest disputes cause way too much grief and punish credit scores unnecessarily for consumers. Disputes happen all the time with the Big corps who are known for their overbilling and BS tactics to make an extra buck.

    As well, my biggest frustration is how lenders treat some collections. For example , smaller collections that clients are forced to pay off by lenders if they want a new mortgage for a purchase or refinance.

    Why should that collection be paid off ? Has nothing to do with the new mortgage. If its a genuine dispute with a company what does the lender care if the client is in dispute over $300? How should that block them from getting a mortgage when the rest of their revolving credit is R1 for 10 years for example? Lenders forcing clients into paying a collection is the most ridiculous guideline ive seen.

    The credit reporting rules and lender policies need another look and a makeover. Quality clients who have a genuine dispute with a company should not have to be punished by Equifax and lenders.
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