The federal regulator took the action after receiving complaints about automated phone calls made by iQor Canada between October 2011 and February 2013.
“They called consumers repeatedly who owed no debt at all or they called vulnerable consumers in dire financial difficulty at all hours and they didn’t identify on whose behalf they were calling,” said Andrea Rosen of the Canadian Radio-television and Telecommunications Commission.
IQor has up to 60 days to appeal the fine.
In an email to CBC News this week, the company said: "While it remains iQor's policy not to comment on pending regulatory matters, the company looks forward to a full review of this matter before the Commission."
IQor was the subject of an investigation by CBC News last year that discovered hundreds of complaints from across the country had been lodged against the company for phone calls they had received.
A Canadian consumer advocacy group said calls from collection agencies have increased in the past decade as telecom companies have outsourced their bill collection practices. John Lawford of the Public Integrity Advocacy Centre thinks the CRTC needs to put the onus back on the phone companies.
“The phone companies originally had something of a duty to keep you on the network and try to work out a payment deal with you,” Lawson said. “Collection agencies are not known for wanting to work out a payment schedule with you. They are known for harassing you.”
Industry Minister James Moore told CBC News he’s aware of the problem involving collection agencies, and that it may be time to consider what Ottawa can do to address consumers’ complaints.
“I know there are stories out there, horror stories,” he said.
Moore added that “it might be useful” to have a parliamentary committee look into the matter.
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