Banking complaints reached new records in 2022: report

Canada's Ombudsman for Banking Services and Investments says it responded to a record high of more than 10,000 public inquiries in 2022, and the number of fraud complaints rose dramatically year-over-year.

Canada's Ombudsman for Banking Services and Investments (OBSI) says it responded to a record high of more than 10,000 public inquiries in 2022, and the number of fraud complaints rose dramatically year-over-year.

OBSI is a national and independent not-for-profit that deals with disputes between people and financial services. In its 2022 annual report, OBSI recorded a 40 per cent increase in public inquiries year-over-year. OBSI says the jump was mainly driven by banking complaints—which rose 56 per cent compared to 2021—while investment complaints increased by eight per cent.

OBSI says it opened 1,151 cases last year, also a new record high and an increase of six per cent from the last record set in 2021.

"These higher volumes continued a trend we have seen throughout the pandemic period, as Canadians, small businesses and financial services firms continue to cope with unprecedented economic challenges, increasing levels of financial stress, and increasing rates of financial fraud," said Sarah Bradley, Ombudsman and CEO at OBSI, in a news release accompanying the report.

People complaining about their bank accounted for 686 cases OBSI dealt with in 2022—a 33 per cent increase from 2021’s 514 cases.

Bradley says on top of economic pressures brought on by the COVID-19 pandemic, changes last year to financial consumer protections laws have also led to more complaints being brought to and addressed through the system.

More consumers than ever are making use of Canadian banks’ internal complaint-handling services to resolve their concerns and a record number are escalating their concerns to us for an independent expert review of their case,” Bradley said.