OBSI is a national and independent not-for-profit that deals with disputes between people and financial services. In its 2022 annual report, OBSI recorded a 40 per cent increase in public inquiries year-over-year. OBSI says the jump was mainly driven by banking complaints—which rose 56 per cent compared to 2021—while investment complaints increased by eight per cent.
OBSI says it opened 1,151 cases last year, also a new record high and an increase of six per cent from the last record set in 2021.
“These higher volumes continued a trend we have seen throughout the pandemic period, as Canadians, small businesses and financial services firms continue to cope with unprecedented economic challenges, increasing levels of financial stress, and increasing rates of financial fraud,” said Sarah Bradley, Ombudsman and CEO at OBSI, in a news release accompanying the report.
BANKING CASES
People complaining about their bank accounted for 686 cases OBSI dealt with in 2022—a 33 per cent increase from 2021’s 514 cases.
Bradley says on top of economic pressures brought on by the COVID-19 pandemic, changes last year to financial consumer protections laws have also led to more complaints being brought to and addressed through the system.
More consumers than ever are making use of Canadian banks’ internal complaint-handling services to resolve their concerns and a record number are escalating their concerns to us for an independent expert review of their case,” Bradley said.
According to the report, fraud was the leading issue for complaints against banks in 2022. Thirty-one per cent of banking cases opened by OBSI were fraud-related, an increase from 22 per cent in 2021. Most fraud cases involved complaints regarding e-transfers, credit cards and wire transfers.
Nineteen per cent of all banking complaints were about service issues, while credit card chargebacks made up seven per cent of all banking cases. OBSI adds complaints about interest rates increased from nine cases in 2021 to 26 cases last year.
Credit cards, personal chequing and savings accounts and e-transfers were the top banking products people raised complaints to OBSI about in 2022. Credit card complaints made up 32 per cent of all banking cases, savings and chequing account complaints made up 15 per cent, while complaints about e-transfers accounted for 14 per cent.
INVESTMENT CASES
Cases involving investments decreased in 2022 by about 18 per cent, compared to 2021.
“Investment cases started the year with some moderation to near pre-pandemic levels, but surged later in the year, largely driven by investor concerns relating to ongoing market downturns and volatility, as well as increasing problems associated with fraud and service issues,” Bradley said.
According to the report, fraud-related cases jumped drastically to 11 per cent of all investment cases in 2022, a rise from one per cent in 2021.
A breakdown of investment cases includes:
Mutual funds – 37 per cent
Common shares (equities) – 33 per cent
Service issues – 21 per cent
Investment suitability – 15 per cent
Fee disclosure – Eight per cent
The newest category of complaints—crypto assets—was the third most common complaint for investors in 2022, accounting for 11 per cent of all investment cases.
“The rise in crypto asset complaints is associated with the increasing regulatory oversight of cryptocurrency dealers, which led to a number of dealers joining OBSI in 2022 as participating firms,” OBSI said in a release.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
