Can't resolve a dispute?
If you have been unable to resolve a dispute with one of Canada’s financial institutions, you may have been advised to seek redress through the OBSI, bank complaints ombudsman. Before proceeding down this path it is wise to do your research and understand the purpose, structure and most of all the results of this organization.
Chances of Financial Compensation
Of the 6,000 to 8,000 complaints brought to the attention of OBSI, bank complaints ombudsman in a year, less than 18% are resolved; and of those that proceed through the OBSI complaint resolution process, almost 75 %, do not receive any financial compensation at the end of the process.
OBSI Reason for Existing
The first thing to understand is that the OBSI, bank complaints ombudsman is not an advocate of the consumer, but an extension of the financial industry. From a strictly practical standpoint it allows its industry members to reduce their cost of dispute resolution in a number of ways.
First, by pooling resources under the OBSI umbrella the financial industry members are able to provide a second-tire complaint-review process at a fraction of the cost of doing it themselves or hiring an independent contractor.
Secondly and most importantly, by setting up a completely separate organization with its own bureaucracy and time-consuming process, the financial institutions are able to drastically reduce their number of complaints. If the original delaying tactics of a complainant’s own financial institution were not enough to dissuade them, OBSI and its process is often enough to wear the complainant down to the point of abandoning their claim. Any complaint abandoned as a result OBSI intervention is a further cost benefit to the industry membership saving them time and legal expenses.
The Great Illusion
The whole process only works if the OBSI, bank complaints ombudsman is able to maintain its façade of objectivity. As long as the complainant believes they are dealing with an unbiased 3rd party, dealing at arms-length from their financial institution, they are apt to accept the OBSI review as valid and legitimate.
As no surprise, in the vast majority of cases, the OBSI review will mirror that of the financial institution, proving yet a third level of benefit to the OBSI membership.
Upon seeing a perceived objective 3rd party come to the same conclusion as their financial institution, many complainants will simply abandon what is, as often as not, a valid claim.
From its questionable use of the term “ombudsman” to its positioning statement of, “we are independent and impartial, OBSI bends over backward (and the truth) to project an image of unbiased objectivity. The organization is certainly not independent nor can it be impartial.
Where the Real Power Resides.
OBSI is totally funded by its more than 500 members and as such they ultimately decide on the organizations role and mandate. As any business person will tell you, when your revenue comes from a single source you make sure you dance to the tune of your benefactor
Be aware
· There is no appeal of the OBSI process
· If you should be one of the few who are recommended for financial compensation, OBSI will demand you give up legal rights if you accept their recommendation.
· Statutes of limitation apply, so be cautious of the amount of time you spend on avenues promising little or no return.
Finally,
If you have completed your due diligence and still feel the OBSI route is the route for you, demand they give you the names of persons who have gone through the process, persons you can contact and question. Judge accordingly.
