Banks must resolve or close consumer complaints within 56 days: watchdog

The Financial Consumer Agency of Canada has published a revised guideline on how banks need to handle consumer complaints, stating that a “bank must resolve or close a consumer’s complaint within the legislated 56-day period.”

In addition, banks “may not pause the 56-day period.”

“To provide consumers greater transparency, the revised Guideline sets out FCAC’s expectation that banks clearly indicate when they have provided their final response to a consumer’s complaint,” the FCAC said in an emailed statement to Global News.

“FCAC expects banks to issue a Notice of Final Decision at the conclusion of any complaint that has not been resolved at the first stage of the bank’s process, and to inform consumers of their right to escalate their complaint to the external complaints body.

“The revised Guideline makes explicit banks’ obligation to have a comprehensive policy to provide timely redress where required under the Bank Act. The Guideline also clarifies FCAC’s expectation that banks provide consumers with timely remediation for harm based on the circumstances of the complaint.”

Under the Bank Act, the complaint process requires institutions to conduct the following:

Banks are also required not to use misleading language, file a copy of their procedures as amended from time to time with the commissioner and provide a written acknowledgment of the date on which they received the complaint, among other requirements, the FCAC says.