Scotiabank Faces Backlash for Harassing Debtor Over 100 Times

URGENT UPDATE: A complaint against Scotiabank has been resolved after a British Columbia regulator confirmed the bank contacted a debtor over 100 times despite being instructed to cease all communication. The Consumer Protection BC launched an investigation in April 2023 following allegations that Scotiabank continued to harass the individual after they requested all further communications go through their legal counsel.

According to Louise Hartland, spokesperson for Consumer Protection BC, the consumer made multiple requests for the bank to stop contacting them. “Despite asking them to stop more than once, the consumer was still allegedly contacted more than 100 times by Scotiabank,” Hartland stated. The regulator emphasized that in British Columbia, consumers have the right to dictate how and when they are contacted regarding debts.

The complaint was resolved through an undertaking between Scotiabank and Consumer Protection BC, which concluded the matter without determining the validity of the allegations. However, as part of this agreement, Scotiabank will pay $33,900 to a consumer education fund and cover $3,351.82 in inspection costs.

Additionally, Scotiabank has committed to updating its internal policies on communications with debtors. This includes ensuring that staff involved in debt collection are trained on the updated procedures.

Consumer Protection BC took this opportunity to remind the public of their rights in debt collection scenarios. “B.C. consumers have rights when it comes to debt collection,” Hartland reiterated. “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.”

The regulator warned that harassment in debt collection can manifest as excessive contact, disrespectful language, or any threatening behavior. Consumers are encouraged to know their rights and to take action if they feel they are being unfairly treated by creditors.

As the fallout from this case continues, consumers and creditors alike are urged to stay informed about their rights and obligations in debt collection practices. This incident serves as a critical reminder of the importance of ethical conduct in financial dealings and the protections afforded to individuals under the law.

Stay tuned for further developments on this case and the broader implications for debt collection practices in Canada.