The government said it made the Ombudsman for Banking Services and Investments (OBSI) the lone external complaints body in an effort to reduce delays and complexities in the system. The change could also make more people aware such an option exists at all.

A survey conducted a few years ago by the Financial Consumer Agency of Canada found that 83 per cent of Canadians had never heard of the OBSI, nor the ADR Chambers Banking Ombuds Office that, until Friday, covered RBC, TD, Scotiabank and its subsidiary Tangerine, and National Bank.

As those banks that were at the ADR shift over to the OBSI, its chief executive Sarah Bradley says the move should makes it easier for Canadians to know where to go.

"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," said Bradley.

While many Canadians are still unaware, those that do know are making more use of the system than ever before. The OBSI saw a 63 per cent increase in inquiries in 2023 to more than 17,000.

More than 3,000 of those led to cases being opened.

The increase comes after the government made other changes to the system, including requiring faster processing of complaints, after the Financial Consumer Agency found too many consumers were dropping out of the process partway through.

The combination of increased complaints, and more to come with the additional banks under the OBSI umbrella, has led the office to more than double its staff from 2022, said Bradley.

As banking issues keep increasing, it's important to have an unbiased organization to evaluate them, she said. When banks were able to choose who they worked with, it was natural to wonder what kind of effect that would have on the adjudicator's decisions.

"When the bank can choose the dispute resolution provider, I think that raises a natural question about like, on what basis are they going to make that choice?"

The single system will also make it easier to compare performance and responses across all the banks in Canada, Bradley said.

"That's information that's valuable to policymakers, it's valuable to the public, valuable to the industry as well."

But while the system is now simplified, Bradley said consumers shouldn't expect to notice a major change in the process, which tends to decide in favour of the banks.

Out of the just under 2,000 consumer complaints cases that OBSI made a recommendation on last year, about 68 per cent were denied.

One of the biggest areas of complaints, and misconception, is in fraud. The volume of fraud complaints were four times higher in 2023 from a year earlier, and made up 40 per cent of all banking cases.

"There is a disconnect between the consumer expectation of protection, and what is, in fact, the bank's obligation," said Bradley.

She said many consumers are familiar with no-liability fraud protection on credit cards, and may expect those same protections for all banking products such as personal accounts and debit cards.

"The reality is that those same protections are not in place."

The federal government did conduct consultations over the summer on potentially increasing the requirements on banks to detect fraud, and place caps on consumer liability, but it's not clear what will come of that.

But while many consumers still walk away frustrated, others do see some restitution. Of the cases where OBSI recommended compensation, the average was $2,573, while overall it recommended $2.7 million to be paid to consumers.

Bradley said that hopefully consumers rarely need to use the system, since it's only for when problems can't be resolved directly with a bank, but that it's important people know it's there.

"Even knowing that there is a place that they can turn, and just that general consumer awareness that if they haven't been able to resolve a complaint with their bank, that they're not out of options, that we exist, we're here to help."

This report by was first published Oct. 31, 2024.

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