Fraud Alert Requirements In Ontario’s Consumer Reporting Act

Concerns about identity theft have resulted in recent amendments to Ontario's Consumer Reporting Act, which came into force on January 1, 2008. In certain situations, credit grantors will be required to take additional steps prior to completing a transaction with an individual. The amendments allow for an individual to have a 'fraud alert' notice put in a credit file that a consumer reporting agency (CRA) maintains about him or her. If a business conducts a credit check on that individual and discovers a fraud alert in his or her file, the business shall not proceed with the transaction without taking reasonable steps to verify the identity of the person involved in the transaction.