Scotiabank has paid $33,900 into a consumer education fund following a debt collection complaint, and an investigation by Consumer Protection BC.
A Maple Ridge lawyer had been involved in a case surrounding such a complaint.
In April, Consumer Protection BC opened a file to investigate Scotiabank’s debt collection practices after a consumer complained the bank continued to communicate with them after they notified collectors they should only be contacted through a lawyer.
“Despite asking them to stop more than once, the consumer was still allegedly contacted more than 100 times by Scotiabank,” said Louise Hartland, Consumer Protection BC spokesperson.
“In BC, a consumer can tell a debt collector they can only contact them in writing or through a lawyer,” she added. “They can also tell the collector to stop contacting them and take them to court if they don’t believe they owe the debt.”
Maple Ridge lawyer Sean Dinsley represented Robert Greene of Vancouver in a lawsuit against the bank. Green was seeking $340,000. Greene also wanted to bring a class action lawsuit over what they claimed were harassing collections calls, and infractions under the Business Practices and Consumer Protection Act.
That case was settled out of court, and Greene could not comment on it, or whether the $33,900 payment into a consumer education fund for improper debt collection related to his case.
In an agreement with Consumer Protection BC, Scotiabank will change its business practices and pay more than $3,500 to cover the cost of the investigation.
“BC consumers have rights when it comes to debt collection. 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,” said Hartland, “Harassment in debt collection often looks like excessive contact or disrespectful language. Any threatening behaviour is considered harassment.”
Consumer Protection BC advises keeping a record of all debt collector contact. Strict rules govern when, where, and how often someone who owes a debt can be called. To stop the calls, the collector must be notified in writing.
The Consumer Protection BC website has resources and templates to stop the calls.