Equifax lobbying Ontario to slow down credit-reporting legislation

A Canadian subsidiary of Equifax Inc. is lobbying Ontario politicians to pump the brakes on a government bill — proposed after the massive data breach at the Atlanta-based company last year — that could provide consumers stronger controls over information held by it and other credit-reporting agencies.

According to a registration with the office of Ontario’s Integrity Commissioner, a lobbyist on behalf of Equifax Canada aims to engage “stakeholders” on a piece of credit-reporting-related legislation proposed by Ontario’s Liberal government, in addition to any other relevant policies.

Equifax wants the Liberal government to move at a more studious pace with the legislation, which is known as Bill 8. The company is one of the largest credit-reporting agencies in both Canada and North America.

“This is with regards to requesting that (Ontario’s consumer services minister) and government take more time to consult affected stakeholders before moving forward with the proposed legislation,” the Equifax lobbyist registration says. “This additional time would allow for stakeholder feedback as well as engaging and educating consumers.”

The government says that proposed legislation, Bill 8, could require credit-reporting agencies to give consumers free online access to their current credit score at least twice a year and to disclose information in a credit report about any scores that were given to third parties over the past 12 months. It could also require a company to implement a credit freeze when a customer asks for it, possibly helping to stop identity theft in the wake of a data breach.

“If passed, this legislation would give Ontario consumers the strongest rights in Canada over information held by consumer reporting agencies,” boasted the province’s 2018 budget.

But there is a question as to whether or not the bill will be passed. Ontario has an election scheduled for June, which leaves the majority Liberal government less time to get the legislation through before the writ drops.

In an emailed statement to the Financial Post, Equifax Canada said Ontario’s Bill 8 had been introduced “without a customary stakeholder consultation.”

“Equifax Canada is engaging the government to share its concerns regarding potential unintended consequences for both consumers and the financial sector,” the company added.

A government spokesperson, however, told the Financial Post they had “extensive consultations” with Equifax and TransUnion, another credit reporting agency, as well as other members of the industry, in the lead-up to drafting Bill 8.

The government also says the Ontario Ministry of Government and Consumer Services intends to consult further on regulations should the bill pass.

“It is up to the Legislative Assembly of Ontario to determine whether the bill will pass this session,” said Harry Malhi, a spokesperson for the consumer ministry.

Ontario’s introduction of the credit-reporting legislation followed the data breach announced by Equifax last year, which the company said affected the personal information of approximately 19,000 Canadian consumers, and potentially 147.9 million more in the U.S.

Equifax said “criminals” had exploited a U.S. website application to break into its network, with the unauthorized access occurring from mid-May through July of 2017. When the cyberattack was disclosed by the company in September, the company’s stock price tumbled and its then-CEO stepped down less than a month later.

The Ontario legislation that contains the credit scoring provisions also includes standards for elevator repair times. As of Tuesday, Bill 8, named the Access to Consumer Credit Reports and Elevator Availability Act, was still being debated.

The bill would not apply solely to Equifax, though. Ontario Government and Consumer Services Minister Tracy MacCharles said on April 12 in the legislature that there are about 40 small consumer reporting agencies registered in the province.

MacCharles also told the legislature that the government legislation was drafted “in response” to two previously proposed private members’ bills, including one from Liberal MPP Arthur Potts. 

Potts said in the legislature on April 12 that the bill “was something that came about as a result of conversations I’d had with many people … on the aspect of the bill relating to credit reporting scores, and particularly in relation to when we saw a breach of data from a credit reporting agency.”

Financial Post

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