Investor incurred additional fees on a group RESP account

The client had opened a group RESP for each of her two children with a scholarship plan dealer. After a year, she started experiencing administrative problems with the plans. The problems persisted and she was not able to get a clear explanation from the firm's telephone representatives. As a result of the problems, she incurred additional administrative fees and was unhappy with the firm. She complained to the firm and, not satisfied with its response, brought her complaint to OBSI.

In reviewing the file, we found the complaint and the firm's response confusing. The firm told us it wanted to resolve the matter but it didn't understand what the client wanted. While usually OBSI allows firms to fully respond to complaints before we review a dispute, in this case the relationship between client and the firm had deteriorated and they were at an impasse. The firm agreed to have OBSI involved in their discussions and help facilitate a settlement.

We interviewed the client and found that her complaint was far more complex than the correspondence indicated. We contacted the firm, outlined the client's specific issues and explained that we had some concerns with the firm's administrative practices. Unfortunately, the firm's next response to the client focused on the same limited issues as its previous responses. Since the firm was still not addressing her most significant issues, the client asked OBSI to proceed with an investigation. Instead, OBSI helped her write an email that clearly outlined her concerns and the restitution she was seeking. This time, the firm agreed to give the client what she had asked for. However, now the client rejected the offer.

Since the offer was essentially what she had asked for, we contacted the client to discuss her change of mind. She told us she was still angry with the firm and believed it should now pay her more. We acknowledged her frustration, but indicated that the offer was in our view reasonable in the circumstances.

Upon reflection, the client accepted the offer. She said that while it did not compensate her for her frustration, it would allow her to transfer her plans without any losses and put the complaint behind her. For its part, the firm did not feel it owed all of what it eventually offered and paid, but accepted that it was partly at fault and the settlement finally resolved a time-consuming complaint.

(2008)