Canada moved to a single independent external complaints body for banks on November 1, 2024, making the Ombudsman for Banking Services and Investments the escalation point for unresolved consumer banking complaints.
The change did not eliminate banks’ internal complaint processes. A customer generally must complain to the bank first and may approach OBSI after the bank closes the file with a detailed written response or once 56 calendar days have passed since the bank received the complaint.
Why the system changed
Previously, federally regulated banks could choose between two approved external bodies: OBSI and the ADR Chambers Banking Ombuds Office. The Financial Consumer Agency of Canada found that this multiple-provider model created complexity and delays and differed from international practice.
The federal government designated the not-for-profit OBSI as the single body after an application and transition process. All banks and federal credit unions subject to the framework must be members, preventing an institution from selecting which approved ombuds service will hear its customers’ cases.
What OBSI can review
OBSI examines complaints about banking products and services, including account transactions, lending, fraud handling and other disputes within its mandate. It is independent of the customer and the bank, offers service free of charge in English and French and can recommend a resolution after reviewing documents and the parties’ positions.
An ombuds review is not the same as a court judgment or criminal investigation. OBSI can recommend compensation or another remedy within its rules, but it does not prosecute fraudsters, reverse every authorised payment or guarantee that a complainant will recover money.
How to build a clear complaint record
A customer should notify the bank promptly, state the disputed transaction or decision, explain the requested outcome and save statements, messages, receipts and case numbers. The bank should confirm when it received the complaint and provide information about escalation stages.
If the bank issues a final response, the customer should keep it and contact OBSI within the applicable time limit. If 56 days pass without resolution, the consumer does not need to wait indefinitely. OBSI’s intake guidance explains what documents are needed.
OBSI and FCAC have different roles
FCAC supervises banks’ compliance with federal consumer provisions and oversees the external body’s legal obligations. It does not resolve an individual compensation claim. A consumer may report a possible compliance problem to FCAC while asking OBSI to review the personal dispute.
For investment complaints, OBSI also has a role under securities arrangements, but the banking designation discussed here concerns federally regulated banks. Provincial credit unions or other financial firms may follow different regimes, so customers should identify the institution’s regulator before escalating.
The single-body framework simplifies where to go; it does not remove the need to act quickly when fraud is suspected. Customers should first secure accounts, contact the bank’s fraud channel and preserve evidence before pursuing the ordinary complaint stages. Police reporting may also be appropriate where theft, impersonation or another crime is alleged.
Source: Financial Consumer Agency of Canada guidance on OBSI and banking complaints.
