Flaherty turning his back on consumers and small businesses

New Democrats call on government to preserve independent review of bank complaints

OTTAWA – Today, Official Opposition Critic for Consumer Protection, Glenn Thibeault and Deputy Critic Annick Papillon called on the Government to reverse its decision to end independent banking dispute resolution in Canada. Both consumer and small business groups have been near unanimous in their condemnation of the move.

Joined by representatives of the Public Interest Advocacy Center [PIAC] and consumer rights organizationOption consommateurs, Thibeault and Papillon also called on banks to use the independent and impartial dispute resolution mechanism offered by the Ombudsman for Banking Services and Investments (OBSI).

“Minister Flaherty’s announcement puts an end to independent banking dispute resolution. The government’s decision gives the banks the power to choose which firms will represent consumers and small businesses who have submitted complaints against the banks,” said Thibeault. “There is no way that these firms can be expected to put the concerns of consumers and small businesses ahead of their own profits, which are dependent on keeping the banks happy.”

OBSI offers consumers and small businesses an independent and impartial way of resolving bank complaints, as well as providing broader public policy services, such as monitoring systemic problems in the banking industry. In reaction, the board of OBSI has stated that they have designed a plan to close down their banking dispute resolution service as they refuse to participate in a ‘race to the bottom’ scenario that the government seems determined to engineer.

“The government is ignoring World Bank recommendations that say multiple competing dispute resolution providers erode fairness and confidence in the banking system,” added Papillon. “The Minister of Finance is undermining his own claims that Canada has the best regulated banking system in the world.”