FILE PHOTO.

Image Credit: pexels.com

A payday loan company that charged a Shuswap couple 45 per cent interest on a $10,000 loan won't be able to go after the couple in the courts after a judge slammed almost every move the company made to get a default order against them and recoup the money.

In a Jan. 18 B.C. Provincial Court decision, Judge Jeremy Guild lambasted debt-collection company EOS Canada saying it had failed to prove whether it even had a licence to operate in B.C. along with a multitude of other errors.

"Its claim could be dismissed on that basis alone, but there are further problems," Judge Guild said.

He pointed out the "significant delays" EOS Canada took in pursuing the debt.

"I am not criticizing EOS’ business practices. They are free to take as much time as they wish and conduct their business as they see fit," the Judge said. "The issue is that EOS claimed interest was payable... during all those unexplained delays at the rate of $9.36 per day."

The decision said the Shuswap couple took the loan out in September 2018 from easyfinancial Services with an interest rate of 44.96 per cent.

By July of the following year, they'd stopped paying and officially defaulted on the $10,700 loan in November 2019.

However, it was almost two years later in October 2021 when EOS started court proceedings.

Basic math would show roughly $6,500 interest was added within that time.

And this is not the first time Judge Guild has slammed the company.

READ MORE: Vernon judge blasts debt collector that charged 40% annual interest

In August 2022, he dismissed a default order barring EOS from going after a $22,000 loan.

Again, he questioned why the company had taken 22 months to get a court order.

"Of course, any delay in filing was of significant benefit to EOS (Canada) as it could claim interest at 39.99 per cent, rather than at the court-ordered interest rate," he said at the time.

In the Shuswap case, the judge highlights that the company hadn't followed basic legal requirements.

In the decision, EOS Canada said it bought the debt from easyfinancial Services.

However, after parsing through the paperwork filed in court the judge didn't agree.

"It would be easy for EOS to provide evidence of assignment in the form of the asset schedule or a printout of that debt from the Account Data File. No such evidence was provided," he said.

The judge said the company hasn't proved the debt was sold or assigned to them.

"That too could end this Application, but there are more problems," Judge Guild said.

The judge pointed out the company didn't follow the correct legal procedures in dealing with the couple.

"Despite having several opportunities to provide all necessary information to support its claim, EOS only provided evidence regarding possible notice to (one of) the debtor(s)," the judge said. "Since there were two debtors, notice had to be provided to both... that too is sufficient to dismiss this application."

Ultimately, the judge threw the case out.

"It would be improper to grant EOS a default order, and it is improper to allow EOS to continue the claim in the absence of any right to do so," he said.

To contact a reporter for this story, email Ben Bulmer or call (250) 309-5230 or email the editor. You can also submit photos, videos or news tips to the newsroom and be entered to win a monthly prize draw.

We welcome your comments and opinions on our stories but play nice. We won't censor or delete comments unless they contain off-topic statements or links, unnecessary vulgarity, false facts, spam or obviously fake profiles. If you have any concerns about what you see in comments, email the editor in the link above. 

News from © iNFOnews, 2023