5. If I act as a guarantor for my friend's loan from a bank, will the bank disclose my role as a guarantor to a CRA? Does the Code also cover the scenario of an individual being the guarantor for a corporate loan?
Yes, the bank may report this information to a CRA. A credit provider may provide credit data collected from the borrower to a CRA. These credit data will include information regarding the borrower and the guarantor (if any).
The definition of "consumer credit" under the Code makes reference to the user of the facility, i.e. whether it is granted to and for the use of an individual, or to and for the use of another person for whom an individual acts as a guarantor. As the meaning of the word "person" includes not only a natural person but also a legal person (e.g. a limited company), a corporate loan guaranteed by an individual will thus fall within the definition of "consumer credit" under the Code.