Vernon judge blasts debt collector who charged 40% annual interest | infonews
August 20, 2022 – 07:00
A Vernon judge has accused a debt collection agency of deliberately waiting nearly two years before pursuing the money in court so it could collect 40% interest on the loan.
According to a B.C. Provincial Court ruling on August 9, Judge Jeremy Guild denied debt collection firm EOS Canada’s request for a default order so it can pursue a $22,000 loan suffering.
Judge Guild ripped holes in almost every aspect of EOS Canada’s application to tackle the debt, criticizing the company on several levels.
The judge asked why it took the company 22 months from the default to get a court order.
“Of course, any delay in filing was very beneficial to EOS (Canada) as it could claim interest at 39.99%, rather than the court-imposed interest rate,” Judge Guild said. “EOS (Canada) also provided no explanation for the 22-month delay before filing a claim, or for any other delay.”
The ruling did not give the original amount of the loan, but said it was $8,632 when it defaulted.
However, over the next 22 months, the company wired $13,750 in interest. The decision stated that the interest rate was 39.99%.
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The loan was originally issued by easyfinancial Services who sold the loan to EOS Canada in the event of default.
The case highlights the exceptionally high interest charged by payday lenders.
Judge Guild criticized almost every action taken by debt collectors in the documents he submitted to the court.
“There are significant contradictions between what is said in the affidavit and the supporting exhibits,” the judge said. “There is no real way to assess the reliability or accuracy of the information purportedly provided. What remains is mere unsubstantiated assertion.”
The judge also pointed out that the calculators in the affidavit are incorrect.
“The interest is mixed with the principal amount and the totals are inaccurate,” he said. “These errors also call into question the accuracy and reliability of the affidavit.
“It is incumbent on a deponent to ensure that their testimony under oath is accurate. When the information is so vague and inaccurate, in such a significant way, it calls into question the good faith and reliability of the contents of the affidavit. “, Judge Guild said. .
The judge also pointed out that there was no evidence that EOS Canada is licensed to operate in British Columbia.
“EOS (Canada) may have such a license, but in the absence of evidence demonstrating that EOS complies with all of the requirements of a debt collector, in my view, it would be inappropriate for this court to ‘authorize a prosecution. ,” he said.
Ultimately, Judge Guild denied the debt collector’s requests for a court order.
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