OBSI COVID-19 pandemic update and outlook

Where we are today
Like all our stakeholders, at OBSI we are working hard to continue to deliver our services and fulfill our mandate during the COVID-19 pandemic, and we are closely monitoring the challenges and events affecting our business environment. We are pleased to report that all of our staff are working effectively and efficiently from their homes during the emergency and we have been able to continue to provide our services effectively and without any interruption.

Inquiry and case volumes
Since the onset of the emergency, we have seen a sharp rise in the number of inquiries from the public to approximately double our pre-crisis levels. These increases have been largely driven by inquiries from consumers about banking issues and concerns. To date, however, we have not experienced a significant increase in cases opened related to the crisis, which is not surprising because consumers can only open complaints with OBSI once they have worked with their financial services provider to try to resolve their concerns. Banks and federal credit unions have 56 days and investment firms and provincial credit unions have 90 days to work with their customers and clients to resolve complaints, after which consumers have 180 days to bring their concern to OBSI if they remain unsatisfied.

A brief look back
Throughout the 24 years that OBSI has been providing financial dispute resolution services to Canadians, we have observed that increases in case volumes are very closely correlated with periods of market disruption and economic uncertainty. This was the case following the dotcom-related market downturn of the early 2000s and during the global financial crisis in the late 2000s. OBSI case volume approximately doubled in the 2-year period between 2007 and 2009, and approximately tripled in the 3-year period between 2006 and 2009, with very high case volumes sustained over the following 2-year period.

Outlook 2020–2021 
Given the significant market volatility and economic uncertainty caused by the current crisis, we anticipate a significant increase in overall case volume beginning in late 2020 and continuing into 2021, based on our experience following historical financial downturns. However, it is difficult to project the magnitude of the increase based on current information, as there are significant differences between this crisis and earlier downturns.

Looking ahead, we expect an increase in mortgage, credit, and service-related complaints relating to the deferral programs introduced by banks and other financial institutions. With scams on the rise, fraud complaints will likely also become more prevalent. Additional complaints that may see an uptick as well include those related to mortgage penalty issues and credit card points refunds.

On the investment side, we anticipate an increased volume of suitability cases as some consumers may be concerned that their investment losses are linked to portfolios that exceeded their individual risk tolerance. We also expect more cases relating to trade delays or malfunctions of online trading platforms.

Preparedness for case volume increase has been a priority for OBSI in recent years. We have put important measures in place to enable us to effectively manage higher volumes, such as investing in our technology, improving our processes to increase our efficiency and productivity, cross-training our staff and building our reserve fund. These preparations have enabled us to be well-positioned to respond to the impact of the COVID-19 pandemic on Canadian financial services firms and consumers.