Ministers Morneau and Fortier welcome FCAC reports on complaints handling and announce review

From: Department of Finance Canada

The Government of Canada is committed to ensuring that all Canadians benefit from strong consumer protection standards in their dealings with banks. When Canadians have disputes with their banks, they deserve access to a fair and impartial resolution process.

Today, Minister of Finance, Bill Morneau, and Minister of Middle Class Prosperity and Associate Minister of Finance, Mona Fortier, welcomed two reports from the Financial Consumer Agency of Canada (FCAC) on the complaints handling system in banking.

The Department of Finance Canada will launch public consultations in spring 2020 to address the findings of these reports and look at how to strengthen the external complaints bodies system in Canada.

The government and FCAC will continue to work together to ensure Canadians are protected and the complaints handling system in banking is effective. In fall 2018, the Government of Canada introduced legislation to strengthen FCAC’s mandate and grant it additional powers. These changes were introduced to ensure all Canadians benefit from strong consumer protection standards when dealing with their banks.

Quotes

“Canadians deserve strong consumer protection standards including in their dealings with banks. I want to thank the Financial Consumer Agency of Canada for its reports. Our government takes the protection of consumers very seriously, and this review will help us examine further improvements needed for banks’ complaints handling systems.”

– Bill Morneau, Minister of Finance

“Financial consumer protection is essential in ensuring that Canadians prosper. This is why I was tasked to enhance consumer protection and help to complete implementation of the new financial consumer protection framework. Continuing to ensure that financial consumers are treated fairly as part of enhanced consumer protection rules will allow Canadians to feel more confident in managing their finances, contributing to a stronger middle class.”

– Mona Fortier, Minister of Middle Class Prosperity and Associate Minister of Finance

Quick facts

  • The 2018 Fall Economic Statement tasked the Commissioner of FCAC to review banks’ complaints handling processes and the effectiveness of the two external complaints bodies (ECBs)-ADR Chambers Banking Ombuds Office and the Ombudsman for Banking Services and Investments.

  • ECBs are organizations that are independent from financial institutions and are mandated to provide a free and impartial review of customer complaints that are referred to them about banking services and products. All banks must be a member of an ECB.

  • The government passed legislation in 2018 to strengthen consumers’ rights and interests when dealing with their banks and to improve FCAC’s ability to protect consumers.

/Public Release. View in full here.