(Ottawa) Finance Minister Chrystia Freeland announced Tuesday a series of measures to tighten the screws on the banking sector. The government wants to reduce fees faced by consumers as part of its efforts to lower the cost of living.
In particular, he wants to reduce the fees charged by banks for bad checks. “These fees, which can amount to $50, disproportionately affect the most vulnerable Canadians,” Freeland said.
She promised to crack down even more on “unwanted and unfair fees” in her next economic update.
The Minister of Finance also asked the Financial Consumer Agency of Canada to ensure that people can access free or low-cost bank accounts. This federal agency has the mandate to supervise financial institutions and protect the rights of consumers of financial products.
She also intends to monitor the application of the mortgage lending guidelines issued by the government in July to help homeowners struggling with rising interest rates. “For Canadians with mortgages who are stressed and under pressure, I want you to know that you are entitled to options and flexibility from your bank,” she said.
She delivered this message to the CEOs of major Canadian banks when she met with them last week, as she does every six months. “I told them that I strongly expect them to follow our government’s mortgage guidelines as published by the Financial Consumer Agency of Canada,” she said.
The government has also designated the Ombudsman for Banking Services and Investments (OBSI) as the sole body responsible for handling complaints from the banking sector. This change will take effect on November 1, 2024, once all banks have transitioned to this nonprofit.
Banks could choose between two entities to handle customer complaints, OBSI and the Office of the Banking Services Ombudsman (ADRBO). Ottawa wants to prevent them from continuing to choose the one that risks deciding in their favor.
“It was free for all,” commented the general director of Option consommateurs, Christian Corbeil. Banks could choose where to be regulated. We believed that a non-profit and independent organization was needed. »
Only two of the six major banks in the country currently use OBSI services, namely the Bank of Montreal and CIBC. The Royal Bank of Canada, TD Bank, Scotiabank and National Bank instead use the services of ADRBO, whose independence was questioned by consumer defense groups.
