FAIR Canada has provided comments to OBSI on its suitability and loss assessment process. While supportive of OBSI and its role in resolving consumer complaints, FAIR Canada does not agree with several changes proposed by OBSI, including proposals:
- to use common indices as performance benchmarks in most suitable performance comparison calculations;
- to only award interest for loss of use where disputes are resolved by way of an Investigation Report; and
- to share loss calculation spreadsheets with firms but not with complainants.
We also make other comments with respect to investor responsibility (or mitigation) and leverage. FAIR Canada is concerned that the proposals, in part, may have been developed in response to industry pressure.
FAIR Canada is increasingly worried about OBSI’s position given the pressure exerted on it by the departure of two of Canada’s largest banks and the Federal Government’s recent introduction of proposed regulations that permit competition for banks’ external dispute resolution business. These developments further disadvantage Canadian consumers.
For more, see Ottawa’s Proposed Regulations for Banking Complaints Fall Short.
