OBSI 2024 Annual Report Released

Consumer demand for OBSI services reaches the highest level ever in 2024

/EIN News/ -- TORONTO, March 14, 2025 (GLOBE NEWSWIRE) -- The Ombudsman for Banking Services and Investments (OBSI) released its 2024 Annual Report.

In 2024, OBSI responded to 16,420 public inquiries – a 5% decrease from the record levels reached in 2023. OBSI opened 3,202 investigations in 2024, compared to last year’s record high of 3,050, representing a 5% year-over-year increase.

“2024 was a pivotal and exciting year for OBSI,” said Sarah Bradley, Ombudsman and CEO, OBSI. “During the year, we responded to the highest ever levels of consumer demand for our services and we successfully prepared for our newly expanded role as the single ombudsman for banking in Canada.”

Banking cases reached a new record high in 2024, increasing 7% year over year to 2,553, up from 2,388 cases in 2023. Investment cases decreased 2% year over year to 649, down from a record high of 662 cases in 2023.

Banking case highlights

In 2024, fraud continued to be the leading issue for consumer banking complaints, representing 38% of banking cases. Fraud investigations increased 2% year over year to 966 cases, up from 950 cases in 2023. Significant issues also included consumer complaints about service issues, representing 21% of all banking cases and a significant year-over-year increase. Cases related to credit card chargebacks made up 7% of all banking cases, while complaints related to product information disclosure or misrepresentation increased significantly year over year and represented 6% of all banking cases.

The top banking product concerns focused on credit cards, e-transfers, and personal savings and chequing accounts. In 2024, we opened:

• 756 credit card complaints, making up 30% of banking cases.
• 607 e-transfer complaints, representing 24% of banking cases.
• 305 personal saving and chequing complaints, accounting for 12% of banking cases.
  

Investment case highlights

Service issues and investment suitability were the leading issues for investors in 2024, with 110 cases opened each, representing 17% of investment cases respectively. Service issues increased 7% year over year, while suitability cases decreased 38% from last year. There were 93 cases related to fraud, representing 14% of all investment cases opened, a 5% decrease year over year. Notably, cases related to fee disclosure issues increased 76% from last year to 74 cases, accounting for 11% of investment cases.

Common shares were the most complained-about investment product in 2024, with 231 cases opened representing 36% of all investment complaints, up from 27% in 2023. Mutual fund cases decreased 34% year over year to 197 cases, representing 30% of investment cases. Crypto assets remained the third most common product for complaints for investors this year, decreasing 11% to 89 cases, down from 100 cases in 2023.

Low settlements at OBSI

For the first time, the annual report includes aggregate data related to low settlements. OBSI’s recommendations are not binding, meaning that firms do not have to follow them. Over many years, we have seen that this can lead to firms offering less than what we recommend as fair in all the circumstances of the case, and consumers accepting these offers because they have no other options.

In the period from 2019 to 2023, there were no banking cases with settlements below the amount we recommended and there were 33 investment cases with settlements below our recommended amount. In total, these 33 consumers received $1,147,470 less than we recommended.

In our review of low settlements data we observed that low settlements are more likely as the value of our recommendations increases. While almost no consumers with recommendations under $10,000 experienced a low settlement, in cases with recommendations of over $100,000, half of consumers settled for less than we recommended, and these consumers received nearly 44% less than we recommended on average.

In 2024, there were four banking cases with settlements below our recommended amount, although all were relatively low value. We saw improvement in the number of investment cases experiencing low settlements in 2024, with just two cases settling below our recommended amount. However, those two consumers received $289,268 less than we recommended as fair.

Systemic issues and disclosures to regulators

In 2024, OBSI continued its practice of communicating regularly with financial services regulators about systemic issues and issues affecting multiple consumers. During the year, a range of topics were reported and discussed at meetings with regulators that included:

• Detailed aggregate data including:
  • Products, issues and outcomes details and trends
  • Specific (anonymized) case outcomes and summaries
  • Additional information relating to cases involving low settlements
• Cryptocurrency fraud
• Banking fraud
• Information relevant to the effective transition to the single ECB framework for Canadian banks
• CSA work towards development of a binding authority framework
• Claims management company activity in Canada
• Investment fund risk rating practices
• OBSI’s loss calculation methodology
  

In 2024, OBSI reported two specific systemic issues to regulators related to banking. The first report related to cases involving fraud, particularly e-transfer fraud and other digital fraud, impacting an unprecedented number of Canadian consumers. The second report related to the impact of a specific firm’s account opening policies and procedures on a class of vulnerable consumers.

Canada’s Ombudsman for Banking Services and Investments (OBSI) is a national, independent, not-for-profit organization that helps resolve and reduce disputes between consumers and financial services firms in both official languages. OBSI is responsive to consumer inquiries, conducts fair and accessible investigations of unresolved disputes, and shares its knowledge and expertise with all stakeholders and the public. If a consumer has a complaint against an OBSI participating bank or investment firm that they are not able to resolve with the bank or firm, OBSI will investigate at no cost to the consumer. Where a complaint has merit, OBSI may recommend compensation up to a maximum of $350,000.

For more information, please contact:
Mark Wright, Director, Communications and Stakeholder Relations
416-287-2877 ext.2225
publicaffairs@obsi.ca