A financial services watchdog reports a surge of complaints in the wake of news reports containing allegations of high-pressure sales tactics at Canada’s big banks.
Between March 13 and March 19, the Financial Consumer Agency of Canada said it received 431 calls and emails, most of which appear to be complaints, an increase of 156% from roughly the same period a year ago.
The agency says the top concerns among those who contacted the FCAC were express consent, sales practices and the financial services watchdog’s role
The total is a marked increase from the 168 calls and emails the watchdog received a year ago and from the previous week, in which the FCAC said it received 175 calls and emails.
The increase in complaints — which the FCAC says need to be analyzed to determine if they fall under consumer protection provisions in the legislation — came a week after reports quoting current and former Toronto-Dominion Bank employees who said they were pressured to meet unrealistic sales targets and would sign customers up for products and services such as overdraft protection without their consent. A subsequent report included allegations from employees at other Big Five banks also describing aggressive sales environments.
In response, the FCAC moved up a review of the financial sector: Now due to start in April, it will focus on sales practices and whether the banks are following guidelines when it comes to express consent and disclosure.
TD has promised a review of sales practices.
