A federal agency tasked with protecting bank customers says Canadian financial institutions are routinely ignoring rules on handling complaints — and the agency itself has failed to follow up on tens of thousands of grievances submitted by the public.A report released by the Financial Consumer Agency of Canada (FCAC) found that many banks failed to meet requirements set out in 2022 to respond to all customer complaints within 56 days and provide written explanations of their decisions. Banks were also supposed to track and report complaints to the agency within five months, but the FCAC said compliance was lacking.“The agency dealt with multiple instances where banks failed to deal with complaints within the required 56 days,” said the report. .“Most banks were not effectively monitoring, testing and reporting on complaint-handling requirements.”While the FCAC instructed banks to assess their compliance and take corrective action, it did not name the institutions involved. The agency said it is “actively monitoring their progress.”The report also highlighted failures within the agency itself. Access To Information records obtained by Blacklock’s Reporter show the FCAC received 27,323 consumer complaints between 2019 and 2023 but did not follow up on a single one. No investigations were launched, and complainants were sent form letters stating that financial institutions determine their own internal policies — despite those policies being subject to oversight under the Bank Act.Parliament created the FCAC in 2001 through Bill C-8 to enforce federal banking rules and protect consumers. The law grants the Commissioner authority to “carry on any activity” necessary to enforce the Act. The agency has 259 staff and a $69.9 million annual budget.
