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Credit File Errors

Credit File Errors

Credit3 min readFebruary 11, 2026
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Credit file errors are more common than many believe and can have significant consequences on mortgage borrowing capacity. According to Canadian studies, nearly one in five credit files contains at least one inaccuracy. Common errors include accounts that do not belong to the consumer (often due to identity confusion), incorrect balances, payments reported as late when they were made on time, closed accounts still appearing as active, and settled debts still listed as unpaid. In Quebec, consumers benefit from enhanced protection under the Consumer Protection Act and the Civil Code of Quebec (articles 35 to 41 on the right to privacy). Equifax and TransUnion are required to investigate any dispute within 30 days of receiving the complaint. If the error is confirmed, the correction must be made immediately. The consumer can also file a statement with the agency to add an explanatory note to their file. The Autorite des marches financiers (AMF) oversees credit agency practices in Quebec, and the Office de la protection du consommateur can intervene in case of disputes.

Credit File Errors: How to Identify and Correct Them

Your credit file is a reflection of your financial history and plays a determining role in any mortgage financing application. Unfortunately, errors are common. The credit agencies Equifax and TransUnion process millions of data points every month, and inaccuracies inevitably slip into some files. For mortgage borrowers in Quebec, an uncorrected error can mean a loan refusal, a higher rate, or less favourable conditions.

Common Types of Errors

  • Identity confusion: accounts belonging to someone with a similar name or close SIN appear in your file. This problem is particularly common with common surnames.
  • Duplicate accounts: the same account appears twice, often after a portfolio transfer between financial institutions or after an account was sold to a collection agency.
  • Incorrect balances: the displayed balance does not match the actual balance, often because the creditor delays transmitting updates to credit agencies.
  • Erroneous payments: on-time payments are reported as late, or old delinquencies continue to appear beyond the legal retention period.
  • Unclosed accounts: an account you closed still appears as active, which can inflate your credit utilization ratio.
  • Wrong personal information: incorrect address, employment, or date of birth, which can cause confusion with other files.

Step-by-Step Dispute Process

  1. Obtain your credit file: Request a free copy from both Equifax and TransUnion. Review both reports, as they may contain different information. Keep receipt dates as proof.
  2. Identify and document errors: Compare each item in your reports with your own financial documents: bank statements, account closure confirmation letters, and payment proofs. Note each error precisely.
  3. Submit the dispute in writing: Send a detailed dispute letter to the relevant agency by registered mail. Include your full identification, a precise description of each error, and supporting documents. Keep a copy of the entire file.
  4. Follow the investigation process: The agency has 30 days to investigate. It contacts the relevant creditor, who must verify their own records. If the creditor does not respond within the timeframe, the agency must remove the disputed information.
  5. Verify the correction: After the investigation, request a new report to confirm the corrections were made. If the error persists, escalate the complaint to the Office de la protection du consommateur or the AMF in Quebec.

Impact on Mortgage Applications

A credit file error can have direct consequences on a mortgage application. A false late payment or an erroneous delinquent account can drop the credit score below minimum thresholds required by lenders and mortgage insurers (CMHC, Sagen, Canada Guaranty). OSFI's mortgage qualification requirements (Guideline B-20) rely partly on the credit file to assess borrower risk. It is therefore recommended to check and, if necessary, correct your credit file at least 3 to 6 months before making a mortgage application, to allow time for the correction process to complete.

Your AMF-certified mortgage broker in Quebec can assist you in reviewing your credit file and guide you through the appropriate steps if errors are found. The LDPSF requires the broker to act in the client's best interest, which includes verifying the accuracy of the credit file before submitting an application to a lender.

Frequently Asked Questions

How can I check if there are errors on my credit file?
You can get a free copy of your credit file by mail from Equifax and TransUnion once per year. You can also use their online services (some are paid). Carefully examine each account, balance, payment history, and personal information to detect any inaccuracies.
How do I dispute an error with Equifax or TransUnion?
Submit a dispute in writing (registered mail or online form) specifying the error and attaching supporting documents. The agency has 30 days to investigate. It will contact the relevant creditor and, if the error is confirmed, the correction will be made. You will receive an updated report.
What if the credit agency refuses to correct the error?
In Quebec, you can add a 100-word statement to your file to explain the situation. You can also file a complaint with the Office de la protection du consommateur or the AMF. As a last resort, legal action is possible under articles 35 to 41 of the Civil Code of Quebec.
How long does an error correction take?
The credit agency has 30 days to investigate after receiving your dispute. If the error is confirmed, the correction is made immediately and a new report is sent to you. In practice, the entire process takes 30 to 90 days, including time for file preparation and communication with the creditor.
Can a credit file error block my mortgage application?
Yes. An erroneously reported delinquent account, an inflated balance, or an incorrect judgment can lower your credit score by dozens of points and result in a mortgage refusal or a higher rate. It is essential to check your file well before making a mortgage application.

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Educational information only. This does not constitute financial advice under the Act Respecting the Distribution of Financial Products and Services (LDPSF). Consult an AMF-certified mortgage broker before making any financial decision.

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