Consumer Protection BC (CPBC) has imposed a heavy fine of $34,000 against a B.C.-based debt collector called Toledo Credit.
Toledo is based in Surrey, and it has been involved in other incidents that have put the company’s integrity in question, including receiving an “F” rating from the Better Business Bureau (BBB).
BBB also lists two alerts for Toledo.
CPBC found that Toledo Credit harassed and provided false information to six customers when attempting to collect their debts.
According to CPBC, in one incident, Toledo “harassed and misled a borrower” by sending emails and text messages like, “Your file will be presented to RCMP, CRA, and provincial crime units,” and “payment is the ONLY abort code. Financial annihilation imminent,” it said.
It also used terms like “financial exile” and “reputational destruction” to coerce and threaten the person into paying the debt.
CPBC pointed out that because Toledo collects debts owed to it directly, it doesn’t require a collection agency licence. Still, CPBC adds that it has to comply with B.C. collection laws. It adds that the “decision maker” in the case found that Toledo Credit’s communications were “calculated to create fear of criminal, financial, professional, and reputational consequences which extended far beyond ordinary debt collection practices.”
On top of the $34,000 administrative penalty, Toledo also has to reimburse $3,000 to CPBC for inspection costs. It also has to change its 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,” said Louise Hartland, director of public relations for CPBC, in a statement.
“This decision sends a clear message to anyone in B.C. collecting a debt: collection communications must be accurate, lawful, and responsible. Businesses need to consider the content, tone, frequency and overall effect of their messages,” Hartland added.
CPBC points out that debt collectors are allowed to contact people about the debts they owe, but that if you feel you’re being harassed, you should keep copies of texts, emails, voicemails, and account records.
CPBC notes that you can request that debt collectors only contact you in writing. You can also use CPBC’s online tools to dispute a debt or to stop collection calls.
You can read the full decision on the CPBC website.