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  • Investor delayed accepting firm settlement offer

    A client with about $1,000,000 in GICs and a number of real estate investments met with an advisor. His account application said that he had an investment time horizon of 15+ years and objectives of balanced capital growth. He was quite knowledgeable and worked in real estate development.

  • Inaccurate risk tolerance on Know-Your-Client form

    The retired client's only asset was a $500,000 one-year Guaranteed Investment Certificate (GIC). She rented an apartment with her sister and had no debts or liabilities. For income, she received Canada Pension Plan (CPP) payments and monthly interest from her GIC.

  • Elderly widow misled into co-signing mortgage and loan

    In February, 2005, an 80-year-old widowed client decided to sell her house to her daughter-in-law for $100,000, though she would continue to live in the house. As the daughter-in-law was not able to qualify for the $95,000 mortgage on her own, she asked the client to co-sign the mortgage, as well as act as a guarantor on a loan, which the client did. A few months later, the daughter-in-law informed the elderly client that she no longer wished to provide her with accommodation and asked her to move out of the house.

  • Repayment amount incorrectly calculated

    A client applied for a $120,000 personal loan from her local branch in order to purchase a boat costing $140,000. The client was approved for the loan consisting of monthly payments of $615 (principal + interest) for 15 years with a $15,000 down payment. Nine months later, the client received a statement from the bank saying she owed more each month than what was initially agreed.

  • Misunderstanding mortgage prepayment terms

    One year after signing for a five-year term mortgage, the client decided to list her property for sale. At the time of closing, she discovered that a substantial penalty was charged by the bank in order to pay out her mortgage. The client had been under the impression that the mortgage prepayment penalty would equal three months' interest. She was prepared to pay that amount but was surprised to find out later that the actual penalty would be based on an Interest Rate Differential, resulting in a much larger penalty amount.

  • Funds withdrawn by divorced individual's partner

    Due to his impending divorce, a client went to a local bank branch to remove the credit room available on a joint personal line of credit by reducing the limit to an amount just above the outstanding balance. The client was advised that it may take up to five business days for the paperwork to go through but that the changes had been made.

  • A "friend" took advantage of an elderly woman

    An 82-year-old woman received a letter from her friend in which the friend admitted she took $1,940 from the client's bank account before leaving the country. The client immediately informed both the police and her bank.

  • OBSI appoints Douglas Melville as new Ombudsman and CEO

    The Ombudsman for Banking Services and Investments (OBSI) appoints Douglas Melville as new Ombudsman and CEO

  • August 31, 2009 Issue

    OBSI appoints Douglas Melville as new Ombudsman and CEO

  • June 17, 2009 Issue

    New consent letter - Complaint


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