It’s always interesting to see how the other half lives. Like, for example, are collection regulations in other countries very different than the ones here in the United States. In some places, they aren’t. A Canadian bank is going to pay the equivalent of $25,000 after a provincial regulator ruled it violated a Consumer Protection Act by attempting to contact a consumer more than 100 times after the consumer asked that all communications be directed to the consumer’s attorney.
Consumer Protection B.C. — the equivalent of a state regulatory agency — announced this week that Scotiabank will pay nearly $34,000 after an investigation found the bank repeatedly contacted a consumer despite clear instructions to speak only with the consumer’s lawyer. The agency determined the bank’s actions constituted harassment under provincial consumer protection laws.
According to Consumer Protection B.C., a consumer filed a complaint in April stating that Scotiabank had contacted them more than 100 times after they notified the bank that all further communication should occur through their lawyer. Under British Columbia’s Business Practices and Consumer Protection Act, once a consumer makes such a request, a collector is required to comply.
Louise Hartland, a spokesperson for Consumer Protection B.C., underscored the intent behind the law. “Even if someone owes money, that doesn’t give the creditor the right to harass them, or to challenge them on a debt they don’t have,” she said in a published report. “Harassment in debt collection often looks like excessive contact or disrespectful language. Any threatening behaviour is considered harassment.”
An inspector reviewing the complaint determined that Scotiabank had violated the act by continuing telephone contact after the request to route communications through counsel.
As part of the agreement:
- Scotiabank will pay $3,351 to cover the investigation’s cost.
- The bank will contribute $33,900 to the Consumer Advancement Fund, which supports consumer education initiatives.
- Scotiabank must update its written policies regarding consumer communication requests and ensure all collections staff are trained on compliant practices.
- Any new staff engaged in collection activity must also receive the training moving forward.
