BURST
Scotiabank has been ordered to pay $33,900 to Consumer Protection B.C. because the regulator found a client with a debt was called more than 100 times after directing the bank to contact them only through their lawyer.
The case is a rare penalty against a financial institution or debt collection agency for failing to follow the rules. It also highlights a debtor’s rights and the responsibility of collectors to honour them.
Here are answers to key questions about your rights and what debt collectors can — and can’t — do.
Can a collector call me?
Yes, a debt collection agency — or in the above case, a bank to which you owe money — has the right to call and ask about your debt, but only within the rules. Those include calling only during the day or evening and never on a statutory holiday.
They also must stop if you’ve told them you formally dispute the debt or to communicate only in writing or through your lawyer. Also, the collector can only call your employer in order to get your address or confirm you work there.
Are rules breaches common?
Not really. From 2022 to ’24, Consumer Protection B.C. data shows an average of 825 inquiries were received each year, which led to only eight total compliance inspections over the three years, including none in 2024. In the most recent two years where complete data is available, 13 investigations were closed in 2024 and 25 in 2023.
That’s because the industry is good at self-policing. For example, Kevin Griffin of CGI Credit Guard, a licensed collection agency based in Vancouver, says regulations in the Business Practices and Consumer Protection Act dictate that when a collector is told to stop calling, the file is flagged immediately and brought to the attention of management. If a debtor provides, in writing, a mailing address or legal representative, all further communication from CGI Credit Guard will be in writing.
What happens if I file a complaint?
“If someone files a complaint with Consumer Protection B.C., our team reviews it to see if there are any violations of consumer protection laws, then investigates,” says spokesperson Louise Hartland. “We are a provincial regulator, and our investigations follow due process, which can take time.
“Our approach is to help businesses voluntarily comply with the law. Our intended goal is not to punish a business, but rather correct marketplace behaviour. Our decision makers have the authority and expertise to choose the compliance tool most appropriate for the situation and have discretion when it comes to their decisions and any enforcement that may result.”
Are the rules the same for collection agencies and banks?
Basically, yes. “By law, any business or person attempting to collect a debt from a B.C. consumer is known as a collector and they must follow B.C.’s debt collection laws,” says Hartland. “When that collector happens to be a third party, meaning they do not own the debt but are collecting it on behalf of another person, that collector is also a collection agent. All collection agents, including bailiffs, are required to be licensed by our office.”
Does Consumer Protection ever negotiate between debtor and collector?
No, says Hartland. “As a provincial regulator, our role is to ensure collectors understand their legal obligation when collecting a debt and to educate consumers on their rights when dealing with a collector.”
People who want to work with a collector should consider contacting a credit counsellor — such as the non-profit Credit Counselling Society — a bankruptcy trustee, a debt consolidation expert, or discuss a solution directly with the collector. If choosing the latter, first read about your rights and what steps to take at consumerprotectionbc.ca .
Was Scotiabank harassing its client?
“To be clear: We do not believe the person involved in this news release was being harassed by Scotiabank,” says Hartland. “They were contacted approximately 100 times over about three months, an average of once a day.”
The error was the bank continuing to call after being told to stop. “Collectors have a right to contact people about debts, but similar to what happened in this instance, those calls have to stop if the person asked for the communication to only be in writing or through their lawyer or where they have told the collector or collection agent they dispute the debt and to take the debt to court.”
So what does amount to harassment?
“If a collector is calling you multiple times a day — or using threatening language — that could be considered harassment,” says Hartland.
Document all the times a collector contacts you, using phone records or call display. A request to be contacted only in writing or through a lawyer must itself be submitted in writing. Use the online help form to make the request or download a printable version.
“If the calls don’t stop, contact Consumer Protection B.C. and submit a complaint,” says Hartland.