New changes come into effect 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.
CTVNews.ca Top Stories
BREAKING Donald Trump picks former U.S. congressman Pete Hoekstra as ambassador to Canada
U.S. president-elect Donald Trump has nominated former diplomat and U.S. congressman Pete Hoekstra to be the American ambassador to Canada.
Genetic evidence backs up COVID-19 origin theory that pandemic started in seafood market
A group of researchers say they have more evidence to suggest the COVID-19 pandemic started in a Chinese seafood market where it spread from infected animals to humans. The evidence is laid out in a recent study published in Cell, a scientific journal, nearly five years after the first known COVID-19 outbreak.
This is how much money you need to make to buy a house in Canada's largest cities
The average salary needed to buy a home keeps inching down in cities across Canada, according to the latest data.
'My two daughters were sleeping': London Ont. family in shock after their home riddled with gunfire
A London father and son they’re shocked and confused after their home was riddled with bullets while young children were sleeping inside.
Smuggler arrested with 300 tarantulas strapped to his body
Police in Peru have arrested a man caught trying to leave the country with 320 tarantulas, 110 centipedes and nine bullet ants strapped to his body.
Boissonnault out of cabinet to 'focus on clearing the allegations,' Trudeau announces
Prime Minister Justin Trudeau has announced embattled minister Randy Boissonnault is out of cabinet.
Baby dies after being reported missing in midtown Toronto: police
A four-month-old baby is dead after what Toronto police are calling a “suspicious incident” at a Toronto Community Housing building in the city’s midtown area on Wednesday afternoon.
Sask. woman who refused to provide breath sample did not break the law, court finds
A Saskatchewan woman who refused to provide a breath sample after being stopped by police in Regina did not break the law – as the officer's request was deemed not lawful given the circumstances.
Parole board reverses decision and will allow families of Paul Bernardo's victims to attend upcoming parole hearing in person
The families of the victims of Paul Bernardo will be allowed to attend the serial killer’s upcoming parole hearing in person, the Parole Board of Canada (PBC) says.