Canadians with a banking complaint can now direct that complaint to just one place.
And it’s a change the complaints body taking on that responsibility hopes will help will be a “big improvement” for consumers.
Up until Friday, the Ombudsman for Banking Services and Investments (OBSI) was one of two external bodies that complaints would go to. But following a decision by the federal government last year, the OBSI was chosen as the sole complaints body for all banking issues.
“It’s a simpler approach,” Sarah Bradley, ombudsperson and CEO of the OBSI, told Global News. “So everybody has a clear understanding of where to turn if things are not working out for them in their dispute with a bank or a financial services firm.”
Bradley said this change will be a boost when it comes to trying to tackle fraud, with the OBSI seeing a “significant increase” in banking complaint cases in the past few years. The OBSI’s annual report for 2023 reported banking complaints related to fraud had more than quadrupled from 2022, reaching 950 cases compared with just 215.
With the changes Friday, all of Canada’s banks will fall under the OBSI, including RBC, Scotiabank, TD Bank, National Bank and Tangerine.
The change was made last year, but did not go into effect until Nov. 1 to prepare for a potential rise in complaints with the OBSI being the sole body, the agency said.
Bradley told The Canadian Press the office has more than doubled its staff from 2022.
The agency notes it has seen a rise in overall inquiries compared with previous years, with more than 17,000 seen in 2023 — up 63 per cent from last year — and more than 3,000 cases being opened as a result.
Having the complaints in one place can help not only streamline complaints but also allow officials to observe trends when it comes to banking complaints, including fraud.
However, before Canadians start filing a complaint with the OBSI, Bradley told Global News if they have an issue they should first go to their bank to see if it can help them first.
Banks have 56 days to deal with a complaint, whereas the OBSI is required to complete its investigation and make a recommendation within 120 days.
“We look at what the bank has provided and look at their responses,” she said. “Then our role is really to make sure that the bank has done what it should have done, has complied with its laws, has complied with the regulations and its public obligations, and has essentially treated the consumer fairly. We’re also going to consider, though, whether the consumer has complied with the terms of their agreements.”
Consumers, according to the OBSI, would not be considered responsible for the loss if:
- All reasonable precautions were taken to keep your personal information confidential, yet someone still initiated a transaction you didn’t authorize.
- Any loss of cards or disclosures of personal information was reported to the firm — such as your bank — as soon as possible.
- The firm’s technology or security measures failed, leading to the fraud.
- The firm had reason to suspect that you might be exposed to fraud but did not act.
“We’re here independent of the bank and independent of the consumer to make sure the fair outcomes are achieved,” Bradley added.
However, while the complaints process is simplified, consumers may still not see a rise in their complaints being approved. Out of the just under 2,000 made to the OBSI that the organization made a recommendation on last year, about 68 per cent were denied.
Of the cases where OBSI recommended compensation, the average was $2,573, while overall it recommended $2.7 million to be paid to consumers.
— with files from Global News’ Tomasia DaSilva and The Canadian Press