Federal financial watchdog to probe banks’ complaints handling processes
The Financial Consumer Agency of Canada plans to analyze accessibility, timeliness and effectiveness of the banks' complaint-handling processes
OTTAWA – Canada’s financial consumer watchdog has got the green light to probe the banks’ internal and external complaint handling processes.
The government said in its Fall Economic Statement that Canadians deserve access to a “fair and impartial” dispute resolution process and the Financial Consumer Agency of Canada will conduct a review by 2019.
A FCAC spokesman says the watchdog had a inkling that complaints would be included, but the government’s statement Wednesday starts the industry review process officially.
He says the FCAC is still in the planning stages, but the new review will analyze accessibility, timeliness and effectiveness of the complaint-handling processes inside the banks and at external complaint bodies.
The watchdog completed a probe of sales practices at Canadian banks earlier this year and found there were “insufficient” controls in place to prevent sales of financial products that are misrepresented or unsuitable.
The FCAC also said in its March report that it found many instances of “inadequate” complaint investigations and urged banks to improve their oversight, management and reporting of consumer complaints.