Surrey debt collector fined $34,000 for harassing borrowers with threats of 'financial annihilation'

Toledo Credit, a Surrey-based lender offering short-term "fast cash loans" without credit checks, has been ordered to pay $34,000 after Consumer Protection B.C. found the company systematically harassed customers with false and misleading threats designed to extract overdue payments.

The regulator launched an inspection in 2025 after receiving complaints from six customers about texts, emails and other communications threatening "financial annihilation," "reputational destruction," criminal fraud charges, blacklisting and bailiff visits. Adjudicator Shahid Noorani found in a September decision that the communications "were calculated to create fear of criminal, financial, professional and reputational consequences extending far beyond ordinary debt collection activity."

In the case Noorani considered most serious, Toledo threatened a customer 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. "These were not isolated statements or momentary lapses in judgment," Noorani wrote. "Instead, they formed a sustained and escalating collection campaign."

In another case, Toledo told customer K.H.: "Payment is the ONLY abort code. Financial annihilation imminent. Check email NOW." The company also threatened to contact police, the CRA and K.H.'s workplace. In a third case involving debtor C.M., Toledo warned: "Keep ignoring it, and it's going to hit your name, your money and your future."

The regulator found Toledo threatened customers with liens, RCMP involvement and skip tracing while falsely claiming these actions had been initiated or were imminent. When contacted by the regulator, Toledo said it did not intend to harass or mislead debtors and did not instruct or authorize staff to harass them or communicate in an abusive or coercive manner. The company acknowledged some communications "lacked precise wording" and may have come across as "overly assertive."

In response, Toledo said it would appoint a dedicated collections manager and review its processes and escalation controls. Consumer Protection B.C. spokeswoman Louise Hartland said: "Collectors can ask people to repay a debt, but they can't harass them or use false or misleading information to pressure them into paying. Debt collectors have to consider the content, tone, frequency and overall effect of their messages, and the messages must be accurate and lawful."

Toledo has until October 26 to seek a reconsideration of the decision.