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CONSULTATION PERIOD IS NOW CLOSED

OBSI's mandate, or Terms of Reference, last underwent significant amendment in 2002 when we welcomed the members of the IDA, MFDA and IFIC, and expanded our coverage on the deposit-taking side as well. Much has changed in the last five years. More recently, along with the insurance ombudservices, we have approved the Framework for Cooperation with the federal and provincial regulators that have set out expectations for the scope and level of service we offer as part of the consumer protection system in financial services.

A couple took out a mortgage from a bank, agreeing that their payments would include property taxes that the bank would remit to the city. A month later, they received a notice from the city saying their taxes were due. After some finger-pointing about whether the bank's or clients' lawyer was to blame, the bank agreed to reprocess the paperwork to make sure the taxes would be paid automatically. Four months later, another notice arrived from the city: their taxes were overdue. Upset with the two missed payments, the couple told the bank they were considering moving the mortgage because of the possible impact on their reputation with the city and their credit ratings.

A client was solicited by a bank mortgage broker for a mortgage for his new house. They discussed the Home Buyer's Plan (HBP) option, a government sponsored program that allows consumers to withdraw up to $20,000 from their RRSP without penalty to buy or build a home.

The client and his now ex-wife had a joint unsecured line of credit with $8,800 owing when their marriage ended. Neither was willing to make any payments on the line. Before long, the bank's collection centre contacted the client. He told them to contact his ex-wife and said that he would not be making any payments.

RESP Dealers Join Ombudsman Service (OBSI)

Welcome! • OBSI’s approach to non-financial loss • Framework with the Regulators • Case Study: An unpleasant and inconvenient surprise • Guest Column by David Agnew, Investment Executive, September 2007 • Investor Forum

A couple decided to sell their home in a major city and relocate to a smaller town. They made arrangements through their longtime banker to apply for mortgage financing for their new home. The mortgage application was completed and approved by the bank. Prior to the mortgage closing date, a bank representative met with the couple to finalize the application and insurance documentation. The couple then made arrangements for moving.

Mutual fund firm refuses OBSI recommendation

The client, a novice investor in her 60s, was looking to invest $75,000 of an inheritance she received. This money was a significant portion of her net worth. With the help of a long-time friend, she opened a margin account with the firm. Through her friend, the client completed the account opening documentation. She never met with the advisor. In fact, they only spoke twice by phone when the client wanted to withdraw money from her account.

The client was recruited by a company, via the Internet, to collect accounts receivable on their behalf. She would be sent cheques from Canadian companies to be deposited to her account. She would then wire 90 per cent of the amounts to designated third parties overseas, and keep 10 per cent as her collection fee.