Bank Ordered to Pay $34,000 Following Debt Collection Investigation
Scotiabank has been ordered to pay nearly $34,000 after a British Columbia consumer protection investigation found the financial institution repeatedly harassed a client with excessive phone calls attempting to collect debt. The regulatory action comes after Consumer Protection B.C. determined the bank contacted an individual more than 100 times despite being instructed to communicate only through the person's lawyer.
Pattern of Harassment Despite Legal Request
According to documents released in November 2025, the case began when a consumer filed a formal complaint with Consumer Protection B.C. in April 2025. The complainant alleged that Scotiabank continued to make collection attempts directly to them despite receiving a clear request that all future communications should go through their legal representative.
The signed undertaking posted on Tuesday revealed the shocking extent of the contacts. "The complainant alleged that the respondent continued to contact the complainant on more than 100 occasions after they made a request to be communicated with by the respondent through their lawyer only," the official document stated.
Clear Violation of Consumer Protection Laws
Louise Hartland, spokesperson for Consumer Protection B.C., emphasized that debt collection practices must follow established legal boundaries. "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," Hartland stated.
She further clarified what constitutes harassment in debt collection: "Harassment in debt collection often looks like excessive contact or disrespectful language. Any threatening behaviour is considered harassment."
The investigation concluded that Scotiabank had breached the Consumer Protection Act, which specifically allows consumers to direct debt collectors to communicate with them exclusively in writing or through legal counsel. The law also permits consumers to tell collectors to stop contacting them entirely and provides recourse to challenge debts they believe they don't owe.
Financial Penalties and Required Changes
As a result of the findings, Scotiabank faces significant financial consequences and must implement operational changes. The bank has been ordered to pay $3,500 to cover investigation costs and an additional $33,900 to a consumer education fund.
Beyond the monetary penalties, Scotiabank must update its internal policies and ensure staff receive proper training on compliant debt collection practices. This requirement aims to prevent similar incidents from occurring in the future.
Consumer Protection B.C. advises individuals who believe they're experiencing harassment from debt collectors to maintain detailed records of all communications, including dates, times, and the nature of each contact.
