Finance Minister Chrystia Freeland did not confirm whether she intends to use her statutory powers to force the Financial Consumer Agency of Canada (FCAC) to investigate public complaints against the banks..Access to Information records showed the FCAC did not reach out to any of the 27,323 bank customers who had written to express their complaints regarding violations of the Bank Act..READ MORE Federal agency ignored 27,000 consumer complaints against banks.According to Blacklock’s Reporter, Freeland’s office did not respond to questions. Under the Financial Consumer Agency Of Canada Act, the finance minister “may give a written direction to the Agency if he or she is of the opinion it can strengthen consumer protection and the public’s confidence.”.The FCAC revealed that despite having a staff of 182 members and an annual budget of $37.1 million, it did not take action on complaints it received from consumers. .Individuals who had contacted the FCAC over the past five years were only provided with a standard letter advising them to discuss their concerns with their bank..“It is largely ineffective with not much justification for its existence,” said John Lawford, general counsel with the consumer advocacy group Public Interest Advocacy Centre. .“Most people give up after getting stonewalled.”.“The Agency is theatre for the public,” Lawford said in an interview. .“It implies there is a level of oversight of the banking industry when there is little. It clearly is not enough. It is window dressing.”.The Commissioner of the Agency had previously declined an interview. .The FCAC later issued a statement clarifying why it had gathered tens of thousands of complaints it did not plan to investigate further..“Consumer complaints play an important role in identifying concerns in the market conduct of federally regulated entities and gathering information on trends and emerging issues,” said the agency..“FCAC is committed to promoting, monitoring and enforcing the compliance of regulated entities,” said Ann-Marie Epps, manager of the agency’s consumer services centre. .“FCAC uses information from complaints to help monitor and evaluate trends.”.The agency issues periodic fines against banks that breach consumer protection regulations, typically on matters reported by banks. It issued three fines since 2021. .“One or two a year is not a good pace,” said the Public Interest Advocacy’s Lawford..Parliament passed the Financial Consumer Agency Of Canada Act in 2001. The law states the FCAC must “strive and protect the rights and interests of consumers of financial products and services.”.“In the end, it is Canadian consumers who are not really being protected,” Senator Pierre Ringuette (NB), a frequent critic of the agency, told a 2016 Senate National Finance committee hearing. .“I haven’t seen in my years here any instance where the Financial Consumer Agency had a real impact on the financial consumer.”
