The long wait to shorten the complaint resolution process in the banking sector is almost over, with a series of regulatory updates set to come into force at the end of the month.
The reforms are contained in a new financial consumer protection framework that aims to address shortcomings in the system, but despite nearly a decade of preparation, critics say the changes represent more minor tweaks than a fundamental solution to the problems. problems.
“It’s not a drastic change, it’s not enough to really protect consumers,” argues John Lawford, executive director of the Public Interest Advocacy Centre.
Banks have already started sending out notifications regarding some of the changes they will need to implement when the rules come into force on June 30, such as alerts when an account balance drops below 100. $ and new rules limiting liability to $50 for lost or stolen credit cards, except in cases of gross negligence.
The new rules also reduce to 56 the number of days following a complaint is first filed once morest a bank before someone can escalate the issue to one of the third-party assessors. Previously, the rules allowed for a 90-day period following the bank’s second level of resolution, but a lack of transparency from banks regarding the timeline meant that the actual average time before the issue might be brought to a higher court reached approximately 130 days.
The new rules also state that banks cannot “impose undue pressure” to sell a product or service, and that these must be “appropriate to the person” and their financial needs.
But while the new framework forces banks to improve their policies, it’s unclear how enforceable or effective the new rules will be. “It doesn’t really change the fundamental relationship between banks and their customers, which is always transactional,” said Rene Kimmett, an intern at the Public Interest Advocacy Center.
The rules don’t go so far as to establish a fiduciary duty to act in the best interests of the client as some securities laws do, she notes.
The changes also do not incorporate financial product design rules, which require banks to design products for an appropriate target market and to consider earlier in the development of a product whether it is appropriate.
The Financial Consumer Agency of Canada, which is charged with protecting the interests of bank customers, said the new rules should address many of the concerns regarding sales tactics it noted at the end. May in a report made with the collaboration of mystery shoppers.
For its part, the banking industry supports the changes brought regarding by the new framework, Canadian Bankers Association spokesperson Mathieu Labrèche said in a statement. “Banks spend a lot of time, effort and resources to ensure that customers receive products and services that are right for them and that they have consented to receive. Banks undertake to respect consumer protection measures. »
