OBSI to handle Canadian banking complaints
New changes are coming into effect that aim to protect bank customers in the event of a scam or address other bank-related issues.
Starting Nov. 1, Canada’s major banks will have to answer to the Ombudsman for Banking Services and Investments (OBSI) if there is a problem the bank can’t resolve. These banks include the Royal Bank of Canada, Toronto-Dominion Bank, National Bank of Canada, Bank of Nova Scotia (Scotiabank) and Tangerine.
“We are free of charge, independent of the banks, we understand the banking system and we understand regulations that are in place. We are here to make sure banks are treating their customers fairly,” said OBSI’s Ombudsman and CEO Sarah Bradley.
Until now, some of Canada’s largest banks used their own third-party ombudsman services to deal with complaints, which has been criticized as self serving and unfair.
The changes come at a time when scams are rampant and many Canadians are being defrauded through their bank accounts.
“It’s a terrible situation. So many Canadians are falling victim to fraud consumers are falling victim to fraud,” said Bradley.
One woman previously told CTV News Toronto she lost $34,000 to a bank investigator scam, which is when a fraudster impersonates a financial institution to gain access into someone’s bank account. Another reported losing more than $17,000 to a similar scam this past spring.
Bradley told CTV News Toronto consumers will still have to try and resolve issues with their banks, but if they are not satisfied with the outcome, they can have their case reviewed again by the ombudsman’s office.
Democracy Watch’s Duff Conacher has been a critic of the current system and calls the change a good start. However, he feels rulings by the ombudsman’s office should be considered binding and not recommendations.
“If you are choosing and paying for your own judge you know you’re going to (have) more favourable decisions for yourself,” said Conacher. “This is a good half step and we need the other step for the ombudsman to have binding orders when the banks abuse or treat customers unfairly.”
Though non-binding, Bradley said the recommendations have been followed by banks and it encourages clients who feel wronged to reach out.
“If they have a problem with their bank or investment firm, they have a place to turn and we are independent and we are here to help,” said Bradley.
Anyone with banking or investment complaints can visit the OBSI website, which is a free service that will take about three to four months for cases to be heard.
This article was first reported by CTV News
