Close
Close
Browser Compatibility Notification
It appears you are trying to access this site using an outdated browser. As a result, parts of the site may not function properly for you. We recommend updating your browser to its most recent version at your earliest convenience.
Skip to Content Skip to Subnavigation

OBSI – Ombudsman for Banking Services and Investments

Consumer Portal LoginFirm Portal Login
Français
Increase Contrast
Fran�aisFR Main menu icon Open Menu
  • For Consumers
    • Can OBSI Help?
    • Consumer Bulletins
    • Consumer Portal
    • Consumer Resources
    • FAQs
    • Find Your Firm
    • How the Complaint Process Works
    • How We're Funded
    • Make a Complaint
    • Past Feedback and Input

    View our Make a Complaint page

    Make a Complaint

  • For Firms
    • Apply for Membership
    • Fee Payment Structure
    • Firm Bulletins
    • Firm Feedback and Input
    • Firm Helpdesk
    • Firm Portal
    • Firm Resources
    • Participating Firms

    Log in to OBSI Firm Portal

    Firm Login

  • How We Work
    • FAQs
    • OBSI and the Legal System
    • Our Approaches
    • Our Process
    • Our Service Standards
    • Our Vision, Mission and Values
    • Principles and Practice
    • Reconsiderations and Complaints About OBSI
    • Responsibilities of Firms and Consumers

    View our FAQs page

    FAQs

  • Case Data and Insights
    • Case Data
    • Case Studies

    View our Case Studies page

    Case Studies

  • News and Publications
    • Annual Reports
    • Firm Refusals
    • Media Releases
    • OBSI News
    • Presentations, Reports and Submissions
    • Print Materials
    • Public Consultations

    View our OBSI News page

    OBSI News

  • About Us
    • About OBSI
    • Accessibility
    • Careers
    • Contact Us
    • COVID-19 Update
    • Governance
    • How We're Regulated
    • Our History
    • Privacy
    • Staff
    • Strategic Plan
    • Terms of Reference

    View our Contact Us page

    Contact Us

I'd Like To... Open icon Close Icon
  • Make a complaint
  • Contact OBSI
  • Find my firm
  • Apply for membership
  • Log in to the Consumer Portal
  • Log in to the Firm Portal
  • Know how the complaint process works
  • Subscribe
  • Follow OBSI on Twitter
  • Follow OBSI on LinkedIn

Media Releases

HomeNews and PublicationsMedia Releases
Print Print link
Share Share icon
  • Open new window to share this page via Facebook Facebook
  • Open new window to share this page via LinkedIn LinkedIn
  • Open new window to share this page via Twitter Twitter
  • Email this page Email
Increase link Increase text size
Descrease link Decrease text size

OBSI releases Report on Income and Canadian Financial Consumer Complaints

Posted On Thursday October 29, 2020
Tweet
Open new window to subscribe via RSS
Subscribe
news release

Toronto, October 29, 2020 – The services of the Ombudsman for Banking Services and Investments (OBSI) are more likely to be accessed by lower- and middle-income Canadians than wealthier Canadians, according to the organization’s just released Report on Income and Canadian Financial Consumer Complaints. The report also found that the cases brought forward by these consumers are as likely to be resolved in their favour, and for as much financial compensation, as cases brought forward by those from higher-income households.

"Household income level can be difficult to consider in isolation, as it is highly correlated with other factors, such as gender, age, marital status, geographic location, educational background and employment status," said Sarah Bradley, Ombudsman and Chief Executive Officer, OBSI. "But, lower- and middle-income households make up approximately 65% of the consumers who reach out to OBSI for assistance each year. Our data, through the lens of household income, does paint a picture of the experience of this large segment of users of our service. What it showed was that lower- and middle-income complainants to OBSI are more likely to be female, over 50, and living in a single-person household. They are less likely to have post-secondary education or participate in the workforce than those who report higher household income. The challenges and concerns that they raise with us are different."

The reportexplores the financial services complaint experiences of Canadians at various income levels who used OBSI’s service. The national, not-for-profit organization collected demographic and case data for almost 1,000 closed cases resolved between 2017 to 2019 to create the report. These cases were grouped into three categories:

  • lower-income households (under $60,000);
  • middle-income households ($60,000 to $100,000); and
  • higher-income households (over $100,000).

Key findings

  • Lower-income households represent almost 40% of OBSI cases. Lower-income consumers of financial services need and make use of OBSI as an accessible alternative to the legal system.
  • Nearly one-third (30%) of employed complainants live in lower- or middle-income households. Canadians experience economic barriers to accessing legal services regardless of their employment status.
  • Most lower-income complainants are over 60, while most higher-income complainants are under 50. Older Canadians have a particular need for accessible dispute resolution.
  • OBSI recommended more than $2.5 million in compensation to lower- and middle-income households over a 3-year period. Access to a financial ombudsman facilitates access to justice for families of all income levels.
  • Women are the primary complainant in most lower-income households. At higher income levels, men are more likely to make a complaint than women.
  • Investment suitability is the most common investment-related issue for lower-income complainants.
  • Fraud is the most common banking issue for lower-income complainants.

Observations and solutions

"In Canada and around the world, significant financial barriers exist for those who need assistance to resolve a dispute, particularly when they feel that something has gone wrong with their financial services provider,” said Ms. Bradley. “The complexity of products, complexity of regulation and other informational barriers are compounded by limited resources, especially for lower- and middle-income households. These factors combine to create very real barriers to access to justice that disproportionately impact lower- and middle-income families."

Some of the solutions that OBSI identified in its report include:

  • Overcoming financial barriers to justice by supporting an accessible and effective financial ombudsman service.
  • Addressing informational barriers to access to justice through plain language, consumer-focused communication and clear, straightforward dispute resolution processes. Financial programs that are marketed to lower-income consumers should be subject to clearer disclosure and greater scrutiny.
  • Responding to procedural barriers to access to justice by streamlining and simplifying the dispute resolution process for financial services consumers.

The Report on Income and Canadian Financial Consumer Complaints can be found on OBSI’s website in both English and French.

-30-

Canada’s Ombudsman for Banking Services and Investments (OBSI) is a national, independent and not-for-profit organization that helps resolve and reduce disputes between consumers and financial services firms in both official languages. OBSI is responsive to consumer inquiries, conducts fair and accessible investigations of unresolved disputes, and shares its knowledge and expertise with the stakeholders and the public. If a consumer has a complaint against an OBSI participating bank or investment firm that they are not able to resolve with the bank or firm, OBSI will investigate at no cost to the consumer. Where a complaint has merit, OBSI may recommend compensation up to a maximum of $350,000.

For more information, contact:
Mark Wright, Director, Communications and Stakeholder Relations
416-287-2877 ext.2225
mwright@obsi.ca

Back to Search
  • Media Releases
  • Annual Reports
  • Firm Refusals
  • OBSI News
    Toggle Section
    • Bulletins
    • News Releases
    • OBSI Newsletters
    • Stakeholder Announcements
  • Presentations, Reports and Submissions
  • Print Materials
  • Public Consultations
  • For Consumers
  • For Firms
  • How We Work
  • Case Data and Insights
  • News and Publications
  • About Us
  • Other Links
  • Can OBSI Help?
  • Consumer Bulletins
  • Consumer Portal
  • Consumer Resources
  • FAQs
  • Find Your Firm
  • View All...
  • Apply for Membership
  • Fee Payment Structure
  • Firm Bulletins
  • Firm Feedback and Input
  • Firm Helpdesk
  • Firm Portal
  • View All...
  • FAQs
  • OBSI and the Legal System
  • Our Approaches
  • Our Process
  • Our Service Standards
  • Our Vision, Mission and Values
  • View All...
  • Case Data
  • Case Studies
  • Annual Reports
  • Firm Refusals
  • Media Releases
  • OBSI News
  • Presentations, Reports and Submissions
  • Print Materials
  • View All...
  • About OBSI
  • Accessibility
  • Careers
  • Contact Us
  • COVID-19 Update
  • Governance
  • View All...
  • Privacy
  • Sitemap
  • Accessibility
  • Subscribe to Our News
  • Contact Us
  • Website Feedback
  • View All...

Ombudsman for Banking Services and Investments logo

Toll-Free Telephone: 1 (888) 451-4519
Greater Toronto Area: (416) 287-2877
TTY Telephone: 1 (855) TTY-OBSI

Toll-Free Fax: 1 (888) 422-2865
Greater Toronto Area Fax: (416) 225-4722

Design by eSolutionsGroup

© 2017 Ombudsman for Banking Services and Investments (OBSI), 20 Queen Street West, Suite 2400, P.O. Box 8, Toronto ON M5H 3R3

High Contrast Mode is on