More controls needed on sale practices at big banks, financial watchdog says | General financial discussion | Discussion forum

http://www.cbc.ca/news/busines.....-1.4583979

More controls needed on sale practices at big banks, financial watchdog says

Financial Consumer Agency of Canada says it is investigating alleged breaches of rules of conduct

Canada's financial consumer watchdog says there are "insufficient" controls in place at the country's biggest banks to prevent sales of financial products that are misrepresented or unsuitable for consumers, and the banks' sales-focused culture elevates the risk that employees may flout consumer protection rules......

'Inadequate protection'

The FCAC added it is investigating alleged breaches of rules of conduct — designed to protect consumers, and which banks are required to follow — that may have been identified during its review and will take action where appropriate........

The agency also said the controls these banks have in place to mitigate the risks of misselling are "insufficient" and "underdeveloped," particularly compared to the banks' robust corporate governance policies......

The Canadian Foundation for the Advancement of Investor Rights and the Public Interest Advocacy Centre said the government should work toward having one national, statutory ombudservice for financial services complaints that can issue binding decisions.

Complaints hit five-year high

Meanwhile, banking-related complaints handled by an industry ombudsman last year surged by 28 per cent, with credit cards, mortgages and personal accounts drawing the most customer grievances.

The federal government said in its budget last month it would introduce legislation that "would strengthen the Financial Consumer Agency of Canada's tools and mandate and continue to advance consumers' rights and interests when dealing with their banks."
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BTW ... Unfortunately, the Industry Ombudsman is ineffective in dealing with the bank customer ... If you have a problem they are very slow and appear to favor the banks rather than the bank customer.

Credit Unions, where you are a member, are faster and much more reasonable
to deal with.

regards,
Wayno