RBC v. Trang: SCC Rules on Production of Discharge Statements and Privacy Implications

The Supreme Court of Canada’s recent decision in Royal Bank of Canada v. Trang, (“Trang“) reviewed the obligations of financial institutions to preserve personal information and clarified when disclosure of personal information without consent will be permitted.  This decision has considerable implications for creditors and third party lenders. There is a strong suggestion that debtors should not be able to use data protection laws (such as PIPEDA) to frustrate the ability of creditors to realize amounts owing.

Organizations will be able to disclose information provided that the context of the transactions, the sensitivity of the information, and the reasonable and legitimate interests of all involved parties support the existence of implied consent. This result may also streamline the process of execution and realization of debts as creditors may be able to obtain necessary information from third parties, such as discharge statements, without re-attending court to obtain separate orders. Overall, this Supreme Court holding should facilitate the collection of debts by successful judgment creditors, who now have a more practical and less expensive path to enforcement.

This content has been updated on May 2, 2024 at 15 h 03 min.