9. Suppose I had a tax loan with a bank that I fully repaid in January 2003 (before the effective date of the Code). I also have a credit card with the same bank for many years up to now. Can my bank provide data concerning all these accounts to the CRA after the Code has taken effect on 2 June 2003?
Now that the Code has taken effect on 2 June 2003, your bank may provide the CRA with data regarding any account (credit or loan account) which involves a current borrowing relationship, even if there is no default in repayment.
However, the bank is not allowed to report data relating to any account that had been settled by full repayment prior to the effective date. As regards an account that remains active after the effective date, the bank cannot report past repayment data (that existed prior to the effective date) unless there is a current outstanding default on the account, in which case, the bank can report such default data. (Note: "Current outstanding default" means an overdue amount that has not yet been settled.)
In your case, since you fully repaid your tax loan before 2 June 2003, the bank is not allowed to report the loan account data to the CRA. As regards your credit card account, provided you have no current outstanding default in any repayment, your past payment transactions (that occurred before the effective date) will not be reported by your bank. However, if you only made the minimum repayment according to the monthly credit card statements before the effective date, the remaining portion after each monthly due date may be considered as default data. Subject to the terms of agreement between you and the bank, the bank may be permitted to report such data to the CRA.