Ontario eyes giving credit bureaus access to LTB orders for renters with history of arrears

A proposal to make Landlord and Tenant Board (LTB) orders accessible to consumer credit bureaus for tenants with a history of rent arrears would make it easier to weed out bad prospective renters, London, Ont., landlords say.

Renters' advocacy groups worry it could hurt low-income tenants who fall behind by damaging their credit scores and unfairly penalize tenants who withheld rent for negligent maintenance or other issues.

The Ford government revealed the plan in a media backgrounder issued Wednesday as it tabled the Cutting Red Tape, Building Ontario Act as part of a larger omnibus package.

"Ontario is exploring the feasibility of arrangements with one or more registered consumer reporting agencies to facilitate access to Landlord and Tenant Board orders where tenants have a history of missed payments," it reads.

It would also "enhance online information about rights and responsibilities" of consumer reporting and collection agencies.

Unless submitted by a landlord following an eviction, credit reporting agencies don't have a direct way to access LTB orders, said Harry Fine, a paralegal and former LTB adjudicator. LTB orders may not be included by default in credit checks landlords perform.

The agencies can access LTB orders posted to CanLII, a website run by the Canadian Legal Information Institute, but Fine said decisions are often significantly delayed, and coverage is incomplete, something the website itself notes. 

Landlords can submit LTB orders to credit reporting agencies, but only if they have a membership in one, Fine said. Alternatively, they can upload them to websites such as Openroom.

Evictions and rent payments can also be reported by landlords through FrontLobby and Rentcheck, which are forwarded to the Landlord Credit Bureau and then Equifax or TransUnion, but the tenant has to consent. 

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Most LTB cases involve rent arrears, but most eviction applications for non-payment don't end with an eviction, even if granted, Fine said, so orders may paint an incomplete picture.

"If the tenant pays following the decision, the tenant stays. The province doesn't know who's evicted. The province … only knows who's been ordered to pay."

Details on the proposal remain murky, and no further information has been made available. CBC News contacted the Ministry of the Attorney General, the LTB, and TransUnion, but received no responses by publication.

In a statement, Equifax said it doesn't receive information from the LTB, but looks forward to working with the province on the initiative.