Consumer Protection BC has imposed $34,000 in administrative penalties on Toledo Credit Inc., a debt collection company based in Surrey, after finding it harassed and misled six consumers during efforts to collect debts.
According to a news release from the regulator, the company sent emails and text messages that used threatening language, including warnings such as “Your file will be presented to RCMP, CRA and provincial crime units. Payment is the ONLY abort code. Financial annihilation imminent,” as well as references to “immediate civil litigation and criminal referral.” Investigators also found the company used phrases like “FINANCIAL EXILE” and “REPUTATIONAL DESTRUCTION” in its messaging to consumers.
Findings of the Investigation
Consumer Protection BC said the company threatened consumers with consequences including police involvement, blacklisting from financial services, asset seizure and wage garnishment, falsely claiming these actions had already begun or were imminent. The decision maker in the case concluded that Toledo Credit’s communications were designed to instill fear of criminal, financial, professional and reputational harm that went well beyond standard debt collection conduct.
The regulator noted that Toledo Credit does not need a collection agency licence because it only pursues debts owed to it directly, but the company is still required to comply with British Columbia’s collection laws.
Penalty and Required Changes
As part of the decision, Toledo Credit must pay the $34,000 administrative penalty, reimburse $3,000 to Consumer Protection BC to cover inspection costs, and revise its collection practices going forward.
Louise Hartland, director of public relations for Consumer Protection BC, said collectors are permitted to seek repayment but cannot harass consumers or rely on false or misleading information to pressure them. She said the decision is meant to send a message to anyone collecting debts in the province that communications must be accurate, lawful and responsible, and that businesses need to weigh the content, tone, frequency and overall effect of their messages.
What Consumers Can Do
Consumer Protection BC said debt collectors are allowed to contact people about money they owe, but recommended that anyone who believes they are being harassed keep records of texts, emails, voicemails and account statements. The regulator said borrowers can request that a collector contact them only in writing, and can use its online tools to dispute a debt or halt collection calls.
Consumer Protection BC said Toledo Credit has until Oct. 26, 2026, to request a reconsideration of the decision.
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