A debt collector based in B.C.’s Lower Mainland has been handed $34,000 in penalties after a regulator found it harassed and misled several borrowers—in one case threatening someone with “reputational destruction.” Toledo Credit also warned that same borrower of “financial exile,” according to a Sept. 24 decision from Consumer Protection B.C. “Multi-jurisdictional enforcement protocol activated,” reads one quoted text message from the company. “Payment is the ONLY abort code. Financial annihilation imminent.” Six borrowers were found to have been targeted. Some were told they would be reported to the police, blacklisted from financial services or have their wages garnished, the regulator said. The threats were not acted upon, the decision notes, but were still “calculated to create fear of criminal, financial, professional and reputational consequences extending far beyond ordinary debt collection activity.” Toledo Credit is a consumer lender in Surrey that only collects on its own debts, meaning it does not require a collection agency licence—but Consumer Protection B.C. said the company is still required to comply with the province’s collection laws. “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 the regulator, in a statement. “This decision sends a clear message 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.” Toledo Credit denied harassing borrowers, and said the communications reviewed by Consumer Protection B.C. didn’t “reflect a corporate strategy to disregard its regulatory obligations,” reads a summary of the company’s position provided in the decision. The debt collector accepted that some electronic communications “may have fallen short of its expected tone,” however, and “may have been perceived by debtors as overly assertive,” the summary adds. On top of the $34,000 in administrative penalties, Toledo Credit was ordered to pay $3,000 to the regulator for inspection costs and to amend its collection practices. The company has until Oct. 26 to request a reconsideration of the decision. Anyone who believes a debt collector is harassing them should keep records of their communications, including texts, emails, voicemails and account records, Consumer Protection B.C. said. The regulator also noted borrowers can also use an online form to exercise their right to request that collectors communicate with them in writing only.
