TORONTO, Nov. 01, 2024 (GLOBE NEWSWIRE) — Starting today, the Ombudsman for Banking Services and Investments (OBSI) will serve as Canada’s sole, designated External Complaints Body (ECB) for banking. From today, OBSI will be accepting complaints from consumers of all federally regulated banks. This decision, made by the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, streamlines the complaint resolution process for consumers across the country.
The selection of OBSI followed a fair, transparent and competitive application process in 2023. By establishing a single ECB, the government replaces the previous multiple-ECB model, which was considered less efficient, confusing for consumers and inconsistent with international best practices. This change addresses inefficiencies and complexities faced by consumers when escalating banking complaints, as highlighted in the Financial Consumer Agency of Canada (FCAC)’s 2020 Industry Review: The Operations of External Complaints Bodies.
“We are pleased to welcome National Bank of Canada, Royal Bank of Canada, Scotiabank, Tangerine Bank, and TD Bank as participating firms,” said Sarah Bradley, Ombudsman and CEO, OBSI. “This transition will reduce consumer confusion and enhance the effectiveness of complaint handling for transitioning banks and their customers.”
OBSI has proactively prepared for this transition by collaborating with transitioning banks and the FCAC. Since the designation last year, OBSI has engaged in a comprehensive process of planning and preparation. In advance of the transition, we have undertaken significant internal improvements, including:
- Workforce growth
- Operational efficiencies development
- System and process improvements
As a result, OBSI is fully and well prepared to meet the needs of all consumers and Canadian banks starting today.
With the consolidation of banking complaint handling under OBSI, the organization will be responsible for providing ombuds services to all federally regulated Canadian banks. OBSI currently has more than 1,500 participating firms, including banks, trust companies, and credit unions, as well as virtually all investment firms across Canada.
Canada’s Ombudsman for Banking Services and Investments (OBSI) is a national, independent, not-for-profit organization that helps resolve and reduce disputes between consumers and financial services firms in both official languages. OBSI is responsive to consumer inquiries, conducts fair and accessible investigations of unresolved disputes, and shares its knowledge and expertise with all stakeholders and the public. If a consumer has a complaint against an OBSI participating bank or investment firm that they are not able to resolve with the bank or firm, OBSI will investigate at no cost to the consumer. Where a complaint has merit, OBSI may recommend compensation up to a maximum of $350,000.
For more information, please contact:
Mark Wright, Director, Communications and Stakeholder Relations
416-287-2877 ext.2225
[email protected]
