Canadians now have a single complaint body for banks

A single external complaints body

Previously, Canadian banks could choose between one of two ECBs: either OBSI or the ADR Chambers Banking Ombuds Office (ADRBO). The six Canadian banks that previously used ADRBO (Royal Bank of Canada, TD Bank, Scotiabank, National Bank of Canada, Tangerine Bank and Digital Commerce Bank) have now transferred to OBSI.

ADRBO will complete the investigation and resolution of complaints that it received and that remain open as of November 1.

The move to a single external body was spurred by findings from FCAC's 2020 report on the Operations of External Complaints Bodies, which concluded that consumers face delays and complications when escalating their banking complaints.

OBSI is a national, independent and not-for-profit organization that has been assisting Canadian banking consumers in resolving disputes for over 25 years.

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Bank complaints

As the single ECB, OBSI can recommend a resolution of a complaint to the consumer and the bank.

New and enhanced protections for financial consumers took effect in June 2022, under Canada's Financial Consumer Protection Framework. They include the requirement that banks deal with customer complaints within 56 days.

Consumers can ask OBSI to review their complaint if it has not been resolved to their liking through a bank's internal complaints process, or if 56 days have passed since the bank received the complaint.

Then once the ECB determines that a complaint falls within its mandate, it has up to 120 days to make a final written recommendation to the consumer and the bank.

Sources

1. ADR: Home page

2. Canada.ca: Industry Review: The Operations of External Complaints Bodies

3. Canada.ca: Your banking rights and new protections