It now handles all banking disputes to simplify consumer experience and reduce delays
Canada has taken steps to simplify the process for banking complaints by designating the Ombudsman for Banking Services and Investments (OBSI) as the sole external complaints body (ECB).
The change is aimed at reducing confusion and delays for consumers seeking resolution for banking issues. Previously, major banks such as RBC, TD, Scotiabank, Tangerine, and National Bank of Canada worked with the ADR Chambers Banking Ombuds Office, leading to a fragmented complaint system.
OBSI chief executive Sarah Bradley said the new system will help consumers know where to go when banking issues arise.
“One of the main benefits of the single (external complaints body) system is it really simplifies the message, helps Canadians know where they can turn when things have gone wrong with their banking relationship,” Bradley said.
A survey by the Financial Consumer Agency of Canada found that 83% of Canadians were unaware of OBSI and other complaint bodies. However, awareness appears to be increasing. In 2023, OBSI experienced a 63% rise in inquiries, totalling over 17,000, with more than 3,000 of these leading to formal cases.
The increase, coupled with the addition of more banks under OBSI’s jurisdiction, has prompted the organization to more than double its staffing since 2022.
Bradley noted that having a single body to handle all banking complaints could eliminate questions around potential bias, a concern that arose when banks could choose their dispute resolution provider.
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“When the bank can choose the dispute resolution provider, I think that raises a natural question about, on what basis are they going to make that choice?” she said.
Although the system is now more streamlined, Bradley pointed out that consumers shouldn’t expect major changes in complaint outcomes. OBSI’s records showed that of nearly 2,000 cases where recommendations were made last year, 68% were resolved in favour of the banks.
Jean-Paul Bureaud, executive director of FAIR Canada, views the changes as a positive move for consumers.
“Having OBSI as the single ECB will be better for everyone—especially for consumers who don't have the capacity, time, or money to navigate the complex complaint-handling landscape,” he said in a statement. "Banking clients will benefit from OBSI's expertise in providing fair, efficient dispute resolution services to Canadian financial consumers for more than 25 years.”
Bureaud added that with the new centralized system, policymakers, consumers, and the financial industry will have easier access to comparative data on bank performance and complaint resolution.
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