Lower and middle-income consumers are more likely to access the dispute resolution services of Canada’s Ombudsman for Banking Services and Investments (OBSI), and their cases are as likely to be resolved in their favour as cases brought forward from higher-income households.

For cases that include financial compensation, there is little difference in the amount recommended, according to OBSI’s Report on Income and Canadian Financial Consumer Complaints, released at the end of October.

OBSI serves as the external dispute resolution service for two of Canada’s five largest banks, and for Canada’s investment industry. The report is based on the resolution of nearly 1,000 cases from 2017 to 2019. Cases were grouped into three broad categories, based on the household income of the complainant: lower income (less than $60,000), middle income (between $60,000 and $100,000) and higher income ($100,000 and above)

OBSI already includes a number of statistical analyses in its annual reports but has recently published multi-year reviews of certain topics, seniors’ issues in 2019 and income-based results this year.

Complaints can only reach OBSI if they have not been resolved to the customer’s satisfaction at the member bank or investment company. Among the findings published in the report:

• 38% of complainants live in lower-income households, 27% from middle-income and 35% from higher-income. Most lower-income complainants are over age 60, while most higher-income complainants are under 50. Average recommended compensation is similar for complaints from households of all income levels.
• OBSI’s average recommended compensation amounts are similar for complaints from households of all income levels. Middle-income complainants received the highest average recommended compensation for investment cases.
• Women are the primary complainant in lower-income households, while men are more likely to make a complaint at higher-income levels.
• For lower-income banking complaints, fraud is the most common issue. For lower-income investment complaints, the most common issue is investment suitability.
• By product, credit cards are the banking product most complained about overall, and mutual funds are the investment product associated with the largest number of complaints.

Similar to their annual reports, the OBSI income report includes a number of “case studies” which describe the basic elements of a number of complaints, including an explanation of how adjudicators weighed different elements in their decision-making.