Surrey Lender Faces 34000 Fine for Debt Collection Violations

A Surrey, B.C., consumer lender has been ordered to pay 34000 by Consumer Protection B.C. after the regulator found the company harassed borrowers and used false or misleading statements while seeking overdue payments.

The decision involved Toledo Credit and followed six customer complaints submitted to the regulator in 2025, according to CBC News and Vancouver Sun reports. The company must also reimburse 3000 for inspection costs, according to Daily Hive.

Consumer Protection B.C. adjudicator Shahid Noorani found Toledo's messages created fear of criminal, financial, professional and reputational consequences beyond normal debt collection activity.

The regulator said one borrower received messages warning that their file would be presented to RCMP, CRA and provincial crime units, followed by a demand stating, "Payment is the ONLY abort code. Financial annihilation imminent."

Another communication told a borrower, "Brace yourself - you were warned." The company also warned some borrowers about wage garnishment, criminal consequences and other actions that the regulator found were falsely presented as imminent.

Toledo Credit told the regulator it did not authorize employees to harass borrowers or communicate in an abusive or coercive manner. The company acknowledged some messages lacked precision and may have appeared "overly assertive."

The company said it would appoint a dedicated collections manager and review its collection processes and escalation controls. A representative for Toledo said the company remains committed to treating borrowers fairly and following applicable laws.

"Toledo Credit takes its obligations under consumer protection legislation very seriously and remains committed to treating borrowers fairly, respectfully, and in accordance with applicable laws," said Lucy L’Hirondelle, a Toledo Credit representative.

Consumer Protection B.C. said debt collectors may request repayment but cannot use harassment or misleading information to pressure people. Louise Hartland of Consumer Protection B.C. said collectors must consider the content, tone, frequency and overall effect of their communications.

"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, Consumer Protection B.C. spokesperson.

Insolvency trustee Blair Mantin told CBC News he regularly sees aggressive collection practices involving short-term lenders and said such behavior can worsen financial distress among people struggling with debt.

"Reading some of the text messages, yes they're inflammatory. They're beyond the pale, but they're the things that I see every day," said Blair Mantin, insolvency trustee.

Mantin said borrowers should understand their rights when dealing with collectors, including the ability to request written communication and seek assistance when collection activity becomes overwhelming.

"They have the right to call you, you have the right to hang up the phone," said Blair Mantin, insolvency trustee.

Toledo Credit has until October 26 to request reconsideration of the decision, according to Consumer Protection B.C. records cited by the reports.