TD Bank allegations raise ‘serious concerns,’ says banking ombudsman

“Financial institutions have 90 days to deal with it, but if they’re still unsatisfied then that’s where OBSI comes in,” Bradley said. “We’re here to help them resolve those disputes.”

OBSI is an impartial arbitrator that serves as an alternative to expensive legal battles by resolving disputes between banks or investment firms and their clients.

TD Bank ditched the organization in 2011 in favour of another arbitrator called ADR Chambers Banking Ombuds Office, following in the footsteps of Royal Bank (TSX:RY), who did so several years earlier.

ADR Chambers declined to comment on the matter, saying that the investigations it conducts are confidential.

The Financial Consumer Agency of Canada said in an email, it’s “concerned about and is investigating allegations about financial institutions signing consumers up for products or services without providing all the required information, particularly about fees related to the products.”

In a statement late Sunday, TD Bank CEO Bharat Masrani said he doesn’t believe the reports are an accurate portrayal of the bank’s workplace, but he takes the concerns the story raises seriously.

“TD is in the trust business,” Masrani said in the statement. “We know we must earn our customers’ trust before we earn their business.”

Share of TD Bank rose 1.45 per cent, or 96 cents, Monday to $66.96 on the Toronto Stock Exchange, after losing more than five per cent of their value on Friday.

Follow @alexposadzki on Twitter.

Alexandra Posadzki, The Canadian Press

by Canadian Press

TD Bank allegations raise ‘serious concerns,’ says banking ombudsman

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