The Ombudsman for Banking Services and Investments (OBSI) published its 2024 Annual Report, characterising consumer demand as the highest on record and setting out case volumes across banking and investments. The report also introduces aggregate data on “low settlements” where firms settle for less than OBSI’s recommended amount. Public inquiries fell 5% from 2023 to 16,420, while investigations opened rose 5% to 3,202, and OBSI highlighted preparations for its expanded role as the single ombudsman for banking in Canada. Banking cases increased 7% to a new high of 2,553. Fraud remained the leading issue, representing 38% of banking cases, and fraud investigations rose 2% to 966, while service issues made up 21% of banking cases; credit card chargebacks accounted for 7% and complaints about product information disclosure or misrepresentation represented 6%. Credit cards (756 cases) and e-transfers (607) were the most common product areas, followed by personal savings and chequing accounts (305). Investment cases decreased 2% to 649, with service issues and investment suitability the leading issues at 110 cases each, while fee disclosure issues rose 76% to 74 cases; common shares generated 231 complaints (36% of investment cases), mutual fund complaints fell 34% to 197, and crypto asset complaints declined 11% to 89. On low settlements, OBSI reported that in 2019–2023 there were 33 investment cases settling below its recommendations, leaving consumers CAD 1,147,470 short, and observed that low settlements were more likely as recommended amounts increased, with half of consumers receiving nearly 44% less than recommended on average when recommended compensation exceeded CAD 100,000; in 2024, four banking cases and two investment cases settled below OBSI’s recommended amount, with the two investment consumers receiving CAD 289,268 less than recommended. OBSI continued to provide regulators with aggregate trends and anonymised case summaries and reported two systemic banking issues related to e-transfer and other digital fraud and to the impact of a specific firm’s account-opening policies on a class of vulnerable consumers.
Ombudsman for Banking Services and Investments 2025-03-14
Canada's Ombudsman for Banking Services and Investments releases 2024 annual report with record banking cases and first aggregate low-settlement data
The Ombudsman for Banking Services and Investments (OBSI) released its 2024 Annual Report, noting record-high consumer demand and increased case volumes. Banking cases rose 7% to 2,553, with fraud as the leading issue, while investment cases fell 2% to 649. OBSI highlighted low settlements, with consumers often receiving significantly less than recommended, and reported systemic issues in e-transfer fraud and account-opening policies affecting vulnerable consumers.