Chapter 14 Key Terms & Definitions Flashcards
Bankruptcy
A legally declared inability of an individual or organization to pay their creditors
Beacon score
A numeral representation of an individual’s credit provided by Equifax
Collections
A debt that has been placed with a collection agency which is a company assigned to collect a debt on behalf of a third party
Consumer proposal
A proposal made by a consumer debtor to his or her creditors under Division II of Part III of the Bankruptcy and Insolvency Act (BIA), with the intention being to restructure the debt. A typical proposal will result in the debtor repaying less than the full debt but more than might occur in a bankruptcy.
Credit
The granting of money by one party to another with an arrangement to make periodic payments to the credit grantor to retire the debt
Credit bureau
An agency that collects information on individuals and provides that information to its members
Credit counseling
Credit counseling involves negotiating with creditors to establish a repayment plan that will repay the borrower’s debt with more favourable terms for the borrower than are currently in place
Credit report
A report on an individual’s credit. Two types exist: one which is made available to the consumer and one which is provided to a member of a credit bureau
Credit score
A numerical representation of an individual’s credit
Empirica score
A numerical representation of an individual’s credit provided by Transunion
Equifax
A Canadian credit bureau
Fair Isaac Company (FICO)
Fair Isaac, founded in 1956, is a company that provides software and consulting services. Its software is used by credit bureaus to calculate credit scores.
Judgment
A final court ruling resolving the key questions in a lawsuit and determining the rights and obligations of the opposing parties, such as the awarding of monies to an injured party
Public records
Information that is available to the Canadian public. Credit bureaus include publicly available information such as bankruptcies, judgments, etc. in their credit reports.
Secured loan
A loan in which a borrower pledges an asset such as a car that may be sold if the borrower is unable to repay a loan. This is typically registered under the Personal Property Security Act (PPSA)
