New bank regulations create ‘Wild West’ consumer complaints system, say critics

OTTAWA – The federal government has announced new regulations that it says will help Canadians resolve disputes with their banks.

Critics warn, however, that the new rules create a free-for-all complaints system, allowing the banks to pick and choose the organization that fields and oversees the grievances.

The regulations require banks to belong to a federally approved external complaints body where consumers can go if they are unable to resolve their issues directly with the bank.

But that doesn’t mean there will be a single, national body to field such complaints.

New Democrat consumer critic Glenn Thibeault says banks will be able to pick their own complaints overseer, so long as that body is approved by the Financial Consumer Agency of Canada.

The Public Interest Advocacy Group has also warned that having multiple complaints structures will lead to confusion among consumers and lead to inconsistent results.