All consumer complaints against banks should be handled by a single federal ombudsman bypassing all provincial agencies, as decided by Finance Minister Chrystia Freeland.In 2016, bank lobbyists tried to do something similar, but after many complaints in the Senate, it was withdrawn, according to Blacklock’s Reporter.“I am designating the Ombudsman for Banking Services and Investments as Canada’s single independent, transparent, not-for-profit external complaints body for the banking sector,” Minister Freeland told reporters. Consumers had “asked for” the order, she said.There was one clause in Freeland's 430-page omnibus budget bill from last June that allowed this decision to be made by Parliament.The Budget Implementation Act granted cabinet authority to name a single “external complaints body to deal with complaints” against banks. No MP or Senator challenged the measure.In 2016, the government removed a similar measure in their budget bill because of protests it went against the laws that protect consumers in the provinces.“It will see a weakening of the rights of consumers,” Luc Thibaudeau, then-chair of consumer protection at the Quebec Bar Association, testified at 2016 hearings of the Senate National Finance committee.In 2014, the Supreme Court decided in Bank of Montreal v. Marcotte that Quebec could handle credit card complaints using its Consumer Protection Act.“We don’t need this,” testified Yves Lauzon, the lawyer who won the Supreme Court case.“It just opens the door to conflict and confusion and useless litigation. It will be costly.”Senate critics at the time threatened to vote down the cabinet’s 2016 budget bill if the measure was not withdrawn. The Senate had not defeated a budget bill since 1993. “Provincial rights won,” said then-Senator André Pratte (QC). “Vigilance will be in effect next time.”“Anything that exists as far as protection of consumers regarding banks in a province would be null and void.” “I don’t see how weakening protection of consumer rights in a province where the protections are strong would benefit consumers in a province like Québec or British Columbia or Ontario where protection is stronger,” said Pratte.“You are diluting consumer rights,” Senator Paul Massicotte (Liberal-QC) told a 2016 committee hearing. “Why not give clients and customers maximum protection? Certainly, the banks will love this.”In 2016, then-Finance Minister Bill Morneau took back some changes he made. He did this after a Senate committee voted 12-0 to remove the changes to the Bank Act.“Wise decision,” Pratte said at the time.
All consumer complaints against banks should be handled by a single federal ombudsman bypassing all provincial agencies, as decided by Finance Minister Chrystia Freeland.In 2016, bank lobbyists tried to do something similar, but after many complaints in the Senate, it was withdrawn, according to Blacklock’s Reporter.“I am designating the Ombudsman for Banking Services and Investments as Canada’s single independent, transparent, not-for-profit external complaints body for the banking sector,” Minister Freeland told reporters. Consumers had “asked for” the order, she said.There was one clause in Freeland's 430-page omnibus budget bill from last June that allowed this decision to be made by Parliament.The Budget Implementation Act granted cabinet authority to name a single “external complaints body to deal with complaints” against banks. No MP or Senator challenged the measure.In 2016, the government removed a similar measure in their budget bill because of protests it went against the laws that protect consumers in the provinces.“It will see a weakening of the rights of consumers,” Luc Thibaudeau, then-chair of consumer protection at the Quebec Bar Association, testified at 2016 hearings of the Senate National Finance committee.In 2014, the Supreme Court decided in Bank of Montreal v. Marcotte that Quebec could handle credit card complaints using its Consumer Protection Act.“We don’t need this,” testified Yves Lauzon, the lawyer who won the Supreme Court case.“It just opens the door to conflict and confusion and useless litigation. It will be costly.”Senate critics at the time threatened to vote down the cabinet’s 2016 budget bill if the measure was not withdrawn. The Senate had not defeated a budget bill since 1993. “Provincial rights won,” said then-Senator André Pratte (QC). “Vigilance will be in effect next time.”“Anything that exists as far as protection of consumers regarding banks in a province would be null and void.” “I don’t see how weakening protection of consumer rights in a province where the protections are strong would benefit consumers in a province like Québec or British Columbia or Ontario where protection is stronger,” said Pratte.“You are diluting consumer rights,” Senator Paul Massicotte (Liberal-QC) told a 2016 committee hearing. “Why not give clients and customers maximum protection? Certainly, the banks will love this.”In 2016, then-Finance Minister Bill Morneau took back some changes he made. He did this after a Senate committee voted 12-0 to remove the changes to the Bank Act.“Wise decision,” Pratte said at the time.
