Surrey debt collector fined $34,000 for harassment of customers, threat of ‘financial annihilation’

A Surrey consumer lender and debt collection company has been ordered to pay $34,000 after it was found to have harassed customers and made false and misleading statements while trying to extract overdue payment.

Consumer Protection B.C. launched an inspection into Toledo Credit in 2025 after receiving complaints from six customers. The company offers short-term cash financing, described as “fast cash loans” on its website, without a credit check.

The complaints detailed texts, emails, and other communications as Toledo tried to collect overdue payments, including references to “financial annihilation,” “reputational destruction,” and threats of criminal fraud charges, blacklisting, and bailiff visits.

In one case, which adjudicator Shahid Noorani considered the most serious harassment violation, the company threatened a borrower identified as E.H. with “financial exile,” including a ban from a “171-lender consortium,” and “legal annihilation.”

The company told E.H. they had been designated a “national financial risk” and that RCMP involvement, Canada Revenue Agency audits, wage garnishment, and bank seizures were imminent if payment was not made.

“The communications were calculated to create fear of criminal, financial, professional and reputational consequences extending far beyond ordinary debt collection activity,” said Noorani in the September decision.

“These were not isolated statements or momentary lapses in judgment,” he said. Instead, they formed a “sustained and escalating collection campaign” in which the company repeatedly portrayed E.H. as fraudulent and deceptive while warning of catastrophic consequences unless immediate payment was made.

The decision detailed similar communications involving five other customers, which Noorani said reflected “recurring collection practices” rather than isolated incidents.

In another case involving a customer identified as K.H., Toledo threatened to contact police, the CRA and K.H.’s workplace. “Payment is the ONLY abort code,” said the company in a text message. “Financial annihilation imminent. Check email NOW.”

In another case involving debtor C.M., the company threatened legal action. “Keep ignoring it, and it’s going to hit your name, your money and your future.”

The regulator found the company threatened customers with serious consequences such as liens, RCMP involvement and skip tracing and falsely claimed the actions have been initiated or were imminent.

Toledo told the agency it did not intend to harass or mislead debtors and that it did not instruct or authorize staff to harass them or communicate in an abusive or coercive manner. It acknowledged some communications lacked precise wording and may have come across as “overly assertive.”

In response to the inspection, the company said it would appoint a dedicated collections manager and review its processes and escalation controls.