'100 Calls in 90 Days': Bank Hit With Nearly $40K Penalty Over Aggressive Debt-Collection Tactics

Scotiabank has been ordered to pay nearly $40,000 after Consumer Protection BC found the bank harassed a Vancouver customer by making more than 100 collection calls in 90 days, despite explicit instructions to communicate only through his solicitor.

The penalty represents one of the most significant enforcement actions taken against a major Canadian financial institution for debt collection practices, with the bank agreeing to pay $33,900 into a Consumer Protection BC education fund and an additional $3,500 to cover investigation costs. The bank has also committed to changing its collection practices and training staff to prevent similar incidents.

The Complaint That Sparked Investigation

Consumer Protection BC, a non-governmental organisation that regulates business and industry practices across British Columbia, opened the investigation in April 2024 after the Vancouver resident lodged a formal complaint about the bank's conduct.

'The consumer followed the proper process and gave Scotiabank written warning to only contact him through his lawyer', said Louise Hartland, director of public relations for Consumer Protection BC. Despite this legally binding request, the bank allegedly continued contacting the customer directly, disregarding both his rights under provincial law and basic standards of professional conduct.

Under British Columbia's Business Practices and Consumer Protection Act, consumers can instruct creditors or collectors to communicate exclusively through legal representation or in writing. Once such a request is made, continuing to contact the debtor directly constitutes harassment and violates provincial consumer protection laws.

Hartland noted that the education fund functions as a trust used to provide consumers with information about their rights when dealing with debt collectors.

What the Law Says

British Columbia's debt collection laws are amongst the most robust in Canada, establishing clear boundaries for how creditors can pursue outstanding debts. The Business Practices and Consumer Protection Act defines harassment as using threatening, profane, intimidating or coercive language, exerting undue or excessive pressure, or publishing or threatening to publish a debtor's failure to pay.

The law specifies that collectors must not communicate with debtors in a manner or with a frequency that constitutes harassment. Whilst there is no specific legal limit on the number of calls a collection agency can make, repeated calls throughout the day, especially if they become excessive and intrusive, can be considered harassment and a violation of consumer rights.

Critically, once a debtor requests communication only through a solicitor or in writing, collectors are legally obliged to cooperate. Consumer Protection BC provides official forms that debtors can complete and submit to collectors for these requests, making the process straightforward and accessible.

The law also protects members of a debtor's family, household, relatives, neighbours, friends and employers from harassment by debt collectors. Collection agents must be licensed by Consumer Protection BC, giving the regulator greater scope to penalise misconduct.