When a Canadian bank treats you unfairly — closes your account without explanation, denies a legitimate claim, or sends you to collections improperly — and their internal complaint process goes nowhere, the Ombudsman for Banking Services and Investments (OBSI) is your next step.
OBSI is an independent, free-to-use dispute resolution service. Banks are required to participate. Here's exactly how to file a complaint and what to expect.
When to File with OBSI
You should file with OBSI when:
- You've already complained to the bank directly and either got an unsatisfactory response or no response within 56 days
- The bank closed your account without adequate explanation
- You've been charged fees you believe are unfair
- The bank made an error that caused you financial loss
- Your bank account was sent to collections improperly
- You've experienced discrimination or unfair treatment
Important: OBSI can only investigate after you've gone through the bank's internal complaint process first. This is a legal requirement.
Before You File: The Bank's Internal Process
Step 1: Complain to the Bank Directly
Start by contacting the bank's customer service or visiting a branch. Document:
- Date of complaint
- Who you spoke with (name and employee ID if available)
- What you asked for
- What response you received
Step 2: Escalate to the Bank's Internal Ombudsman
If front-line resolution fails, escalate to the bank's internal complaint handling department:
| Bank | Internal Complaint Office |
|---|---|
| BMO | BMO Customer Complaint Appeal Office |
| RBC | RBC Client Care |
| TD | TD Office of the Ombudsman |
| Scotiabank | Scotiabank Office of the President |
| CIBC | CIBC Client Care |
Step 3: Wait for Their Response
Banks have 56 calendar days to provide a final response to your complaint. If they don't respond within 56 days, or if their response is unsatisfactory, you can proceed to OBSI.
How to File with OBSI
Step 1: Check Eligibility
Your complaint is eligible if:
- It's about a bank or investment firm that participates in OBSI (all major Canadian banks do)
- You've gone through the bank's internal process
- The complaint involves a financial product or service
- You're filing within 6 years of the event (or 180 days after the bank's final response)
Step 2: Submit Your Complaint
Online: Visit obsi.ca and fill out the complaint form Phone: Call 1-888-451-4519 (toll-free) Email: ombudsman@obsi.ca
Step 3: Provide Key Information
Your complaint should include:
- Your full name and contact information
- The bank's name and your account number(s)
- A clear description of the problem
- Copies of relevant documents (statements, correspondence, notices)
- The bank's final response letter (if you received one)
- The financial impact (how much money you lost or were charged unfairly)
- What resolution you're seeking
Step 4: Get Your Case Number
OBSI will acknowledge your complaint within 5 business days and assign a case number. Keep this for all future correspondence.
What Happens During an OBSI Investigation
| Phase | Timeline | What Happens |
|---|---|---|
| Acknowledgment | 5 business days | OBSI confirms receipt and assigns a case investigator |
| Preliminary review | 2-4 weeks | OBSI contacts the bank and requests their file |
| Investigation | 2-6 months | Investigator reviews evidence from both sides |
| Recommendation | Within 120 days (target) | OBSI issues a recommendation for resolution |
| Bank response | 30 days | Bank can accept or reject OBSI's recommendation |
If the Bank Rejects OBSI's Recommendation
If the bank refuses OBSI's recommended resolution:
- OBSI publishes the bank's name publicly (a "naming" process that creates reputational pressure)
- You can pursue the matter in court
- The public naming is available on OBSI's website
What OBSI Can and Cannot Do
OBSI Can:
- Recommend financial compensation (up to $350,000 for banking complaints)
- Investigate unfair account closures, improper fees, and service failures
- Review collection actions taken by banks
- Mediate between you and the bank
OBSI Cannot:
- Force the bank to comply (recommendations are non-binding, but banks rarely refuse)
- Investigate matters currently before the courts
- Handle criminal matters (fraud by the bank)
- Override regulatory decisions
Tips for a Stronger Complaint
- Document everything from the start — save emails, take notes on calls, screenshot account pages
- Be specific about financial loss — "I was charged $150 in unjustified fees" is stronger than "they charged me unfairly"
- Include a timeline — dates matter for establishing that the bank had time to respond
- State what you want — be specific: account reinstated, fees reversed, collection notice removed, etc.
- Stay factual and professional — emotional language weakens your case
The Bottom Line
OBSI is a powerful, free tool for Canadians dealing with bank disputes. After you've exhausted the bank's internal complaint process (or waited 56 days without a response), file with OBSI online, by phone, or by email. Their investigations are thorough, and banks rarely reject their recommendations due to the public naming consequences. If you'd rather not manage the back-and-forth with the bank and OBSI yourself, an AI agent like Pine can draft your complaints, file with OBSI on your behalf, and track the case through resolution.
Sources
- OBSI Official Website: https://www.obsi.ca/
- Financial Consumer Agency of Canada: https://www.canada.ca/en/financial-consumer-agency.html
- Bank Act (Canada): https://laws-lois.justice.gc.ca/
What is OBSI and how does it help with bank complaints?
OBSI (Ombudsman for Banking Services and Investments) is an independent, free dispute resolution service in Canada. All major Canadian banks are required to participate. OBSI investigates complaints about unfair treatment, improper fees, account closures, and other banking disputes. They can recommend financial compensation up to $350,000 for banking complaints. The service is free for consumers.
Do I have to complain to the bank before filing with OBSI?
Yes. OBSI requires that you go through the bank's internal complaint process first. Contact the bank's customer service, then escalate to their internal complaint or ombudsman office. The bank has 56 calendar days to provide a final response. If they don't respond within 56 days, or if their response is unsatisfactory, you can then file with OBSI.
How long does an OBSI investigation take?
OBSI acknowledges complaints within 5 business days. The preliminary review takes 2 to 4 weeks. The full investigation typically takes 2 to 6 months, with a target of completing within 120 days. The bank then has 30 days to accept or reject OBSI's recommendation. Total timeline from filing to resolution is typically 3 to 8 months.
What happens if the bank rejects OBSI's recommendation?
If a bank rejects OBSI's recommended resolution, OBSI publicly names the bank on their website, creating reputational pressure. This public naming includes details of the complaint and the rejected recommendation. Banks rarely reject OBSI recommendations because of this reputational consequence. If the bank does reject, you retain the right to pursue the matter in court.
