B.C. debt collector fined $34,000 for harassing and threatening borrowers

Consumer Protection BC (CPBC) has imposed a $34,000 administrative penalty on Toledo Credit, a debt collector based in Surrey, B.C. CPBC found the company harassed six customers and provided false information while attempting to collect debts. Toledo must also reimburse CPBC $3,000 for inspection costs and change its collection practices.

In one case, CPBC said, Toledo harassed and misled a borrower through emails and text messages. One message said the borrower’s file would be sent to the RCMP, the Canada Revenue Agency and provincial crime units. Another read, “payment is the ONLY abort code. Financial annihilation imminent.” CPBC said the company also used phrases such as “financial exile” and “reputational destruction” to coerce and threaten the borrower into paying.

CPBC noted that Toledo collects debts owed directly to the company, so it does not need a collection agency licence. It is still required to follow B.C.’s collection laws. The decision maker found Toledo’s communications were calculated to create fear of criminal, financial, professional and reputational consequences extending far beyond ordinary debt collection practices.

“Collectors can ask people to repay a debt, but they can’t harass them or use false or misleading information to pressure them into paying,” Louise Hartland, CPBC’s director of public relations, said in a statement. Hartland said the decision sends a clear message to debt collectors in B.C. that their communications must be accurate, lawful and responsible. Businesses should consider the content, tone, frequency and overall effect of their messages.

CPBC says collectors may contact people about debts they owe. Anyone who feels harassed should keep copies of texts, emails, voicemails and account records. People can ask collectors to contact them only in writing, and can use CPBC’s online tools to dispute a debt or stop collection calls. The full decision is available on CPBC’s website.