P.E.I. businesses must notify customers of credit checks

Steve Arnold of North Rustico, P.E.I., is frustrated after Eastlink did a credit check without notifying him first.

He said he wasn't opposed to the credit check, but it is the law on P.E.I.that whileany business extending credit to a customer can do a credit check, they must notify the customer first either verbally, in writing or through the small print in an application or contract.

Eastlink admitted it made a mistake by conducting the credit check without notifying Arnold.

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Credit check impacts score

Arnold said people should be aware thechecks cannegatively impact their credit rating.

"What made it particularly difficult for me this year is that we're starting a new business, my business partner and I, and we are applying for bank loans,and a credit check on somebody's report, whether you've got good credit or bad credit, a credit check is a negative," said Arnold.

"It means you're out there looking for creditand potentially it could mean to a lender that you're overextending on yourcredit. So that's what made me a little bit upset, was the timing of everything. Despitethat it shouldn't have happened in the first place."

The provincial government said it is up to the individual to make sure they check their credit rating and make sure everything is inorder and recommend itbe doneonce a year.

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