A fairer, more cohesive system of third-party dispute resolution for financial services consumers

The system of third-party dispute resolution for financial services consumers in Canada is disjointed, disorganized and favours financial institutions.

Consumers deserve fair, independent, easy-to-access-and-use third-party dispute resolution when the encounter a problem with a financial institution.

Financial institutions have been permitted to dismantle and degrade consumers opportunities to have their problems resolved fairly. Methods of dispute resolutions that started out as a way to avoid costly days of complicated court proceedings, for consumers and businesses alike, are now complex, confusing and invisible.

Dispute resolution involving banks, in particular, has become problematic.

A history of dispute resolution in banking and investments

Consumers Council of Canada prepared a “Consumer Perspectives 360º Report” entitled “Canada’s Banking Dispute Resolution System” which provides some of the history of this issue. [Download: PDF| EPUB] This report helps Canadian consumers understand the history of this important but complex consumer protection issue.

Among steps government can take

1. Require a single, regulated independent external provider with a strong governance process.
2. Expand the role of the dispute resolver to include transparent reporting to regulators on system problems made apparent by consumer complaints.
3. Make precedents set within the dispute resolution process transparent.