Canadian Debt Collector Fined $34,000 for Harassment and Misleading Collection Threats

Case Snapshot

• Court: Consumer Protection BC, administrative enforcement proceeding, Canada
• Case: Toledo Credit Inc., enforcement files 32170, 32171, 32172, 32177, 32273 and 32304
• Decision Date: Sept. 24, 2026
• Core Issue: Whether the lender’s debt collection communications violated British Columbia’s consumer protection requirements.
• Key Allegation: Toledo Credit harassed borrowers and made false or misleading statements concerning criminal consequences, legal action, and other potential collection outcomes.
• Court Holding: The administrative adjudicator found harassment and false or misleading representations across six borrower complaints. The adjudicator dismissed allegations concerning collection contact hours and certain inspection-interference allegations.
• Outcome: Administrative penalties totaling 34,000 Canadian dollars, inspection costs of 3,000 Canadian dollars, and mandatory corrective measures.
• Notable Detail: The adjudicator determined that the specific collection contact-hour restriction did not apply to text messages and emails, although broader prohibitions against harassment and misleading representations remained applicable.

Consumer Protection BC, a provincial regulator in Canada, has imposed penalties totaling 34,000 Canadian dollars against Toledo Credit Inc., a Surrey, British Columbia-based lender, after finding that the company harassed borrowers and made false or misleading representations during debt collection. The Sept. 24, 2026, enforcement decision also requires the company to pay 3,000 Canadian dollars in inspection costs and implement corrective measures.

Canadian Regulator Finds Harassment Across Six Borrower Complaints

According to Consumer Protection BC’s enforcement announcement, the regulator investigated complaints involving Toledo Credit’s collection communications and found violations of British Columbia’s Business Practices and Consumer Protection Act.

The underlying administrative decision addressed six borrower complaints. The adjudicator found that Toledo Credit engaged in prohibited harassment and used false or misleading information in its collection communications.

The conduct included messages threatening criminal investigations, fraud allegations, police involvement, imprisonment, employment consequences, and restrictions on future access to credit.

Some communications used language such as “FINANCIAL EXILE,” “LEGAL ANNIHILATION” and “REPUTATIONAL DESTRUCTION” to pressure borrowers into making payments.

The adjudicator determined that the communications went beyond permissible efforts to recover outstanding debts. The decision also found that certain statements misrepresented the consequences borrowers could face if they did not pay.

These findings are particularly relevant to collection operations that rely on automated messages, standardized templates, or aggressive escalation language to encourage repayment.

Toledo Credit Ordered to Pay 34,000 Canadian Dollars in Penalties

Consumer Protection BC issued four administrative monetary penalties totaling 34,000 Canadian dollars.

Two penalties of 8,000 Canadian dollars each arose from one borrower complaint, while two penalties of 9,000 Canadian dollars each arose from another. The penalties addressed harassment and false or misleading representations.

The regulator also issued a compliance order requiring Toledo Credit to change its collection practices within 90 days of receiving the order. The company must provide a statutory declaration confirming compliance within 100 days and retain relevant records for three years.

Additionally, Toledo Credit was ordered to pay 3,000 Canadian dollars in inspection costs.

The company disputed the allegations and described efforts to improve training, scripts, and management oversight. However, the adjudicator found that the evidence did not adequately demonstrate implementation of those changes.

According to the regulator’s announcement, the deadline to request reconsideration was Oct. 26, 2026. The published materials do not establish whether Toledo Credit requested reconsideration.

Decision Addresses Text Messages and Collection Contact Hours

One notable aspect of the decision concerns the application of British Columbia’s collection contact-hour restrictions to text messages and emails.

The regulator examined allegations that Toledo Credit contacted borrowers outside permitted collection hours. However, the adjudicator concluded that the relevant statutory provision applied to communications made by telephone or in person, rather than written electronic messages.

As a result, the adjudicator dismissed the allegations involving prohibited contact hours.

That determination did not exempt text messages or emails from the law’s broader restrictions on harassment and misleading collection practices. The adjudicator separately found that the content of written electronic communications violated those provisions.

The decision illustrates the importance of evaluating collection communications under each applicable legal requirement rather than assuming that all communication channels are governed by identical restrictions.

Creditors Collecting Their Own Debts Remain Subject to Collection Laws

Toledo Credit originates loans and collects debts owed directly to the company. The decision noted that the business did not require a collection agency license under the applicable provincial framework.

However, that distinction did not remove the company from the consumer protection provisions governing debt collection conduct.

The adjudicator found that Toledo Credit remained responsible for complying with statutory prohibitions against harassment and false or misleading collection representations.