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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2022-11-16 and last amended on 2022-06-30. Previous Versions

PART XII.2Dealings with Customers and the Public (continued)

DIVISION 2Fair and Equitable Dealings (continued)

Complaints Process (continued)

Marginal note:Annual information

 An institution shall, free of charge and within 135 days after the end of each financial year, make available the following information for that year on each of its websites through which it offers products or services in Canada and provide the information in writing to any person who requests it:

  • (a) the number and nature of any complaints that were dealt with by the officer or employee designated by the institution to deal with complaints who holds the most senior position identified for that purpose in the procedures established by the institution;

  • (b) the average length of time taken to deal with the complaints received by that officer or employee;

  • (c) the number of complaints that, in the institution’s opinion, were resolved by that officer or employee to the satisfaction of the persons who made them; and

  • (d) any prescribed information.

Marginal note:Approval of body corporate

  •  (1) The Minister may, on the Commissioner’s recommendation and for the purpose of this section, approve a body corporate incorporated under the Canada Not-for-profit Corporations Act or under the Canada Business Corporations Act to be an external complaints body if the body corporate’s purpose under its letters patent is, in the Minister’s opinion, to deal with complaints referred to in paragraph 627.43(1)(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints.

  • Marginal note:Information, material and evidence

    (2) A body corporate that is seeking an approval under subsection (1) is to apply to the Commissioner and include in the application, in the manner required by the Commissioner, any information, material and evidence that he or she requires.

  • Marginal note:Matters for consideration

    (3) Before approving a body corporate, the Minister shall take into account all matters that the Minister considers relevant to the application, including whether the body corporate has

    • (a) the reputation required under paragraph 627.49(a); and

    • (b) policies and procedures, and terms of reference to govern its functions and activities as an external complaints body, that would enable it to meet the conditions set out in paragraphs 627.49(b) to (m).

  • Marginal note:Obligation to be member

    (4) An institution shall be a member of only one body corporate that is approved under subsection (1).

  • Marginal note:Not an agent

    (5) The approved body corporate is not an agent of Her Majesty.

  • Marginal note:Approval to be published

    (6) An approval given under subsection (1) shall be published in the Canada Gazette.

Marginal note:Maintaining approval

 A body corporate that is approved under subsection 627.48(1) shall, as a condition of maintaining that approval,

  • (a) maintain a reputation for being operated in a manner that is consistent with the standards of good character and integrity;

  • (b) make its services as an external complaints body available across Canada in both official languages and offer those services free of charge to persons who make complaints to it;

  • (c) ensure that every person who acts on its behalf with respect to a complaint is impartial and independent of the parties to the complaint;

  • (d) advise the Commissioner in writing and without delay if it determines that a complaint raises a systemic issue;

  • (e) if it determines that all or part of a complaint is not within its terms of reference, provide the person who made the complaint with written reasons for that determination, and the name of any entity to whom the person may make a complaint, within 30 days after the day on which it receives the complaint;

  • (f) obtain confirmation from a member institution to which a complaint relates regarding whether the period referred to in paragraph 627.43(1)(a) has ended, unless the person who made the complaint has provided it with the written acknowledgment referred to in paragraph 627.43(4)(a);

  • (g) impartially deal with complaints referred to in paragraph 627.43(1)(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints;

  • (h) no later than 120 days after the day on which it has all of the information that it requires to deal with a complaint, make a final written recommendation to the parties;

  • (i) within 90 days after making a final recommendation, make a summary of the final recommendation available on its website free of charge, which summary is to include

    • (i) a description of the nature of the complaint that is the subject of the final recommendation,

    • (ii) the name of the institution that received the complaint,

    • (iii) a description of any compensation provided to the persons referred to in paragraph 627.44(c) or (d),

    • (iv) the reasons for the final recommendation, and

    • (v) any prescribed information;

  • (j) within 135 days after the end of each financial year, file a written report with the Commissioner on the performance of its functions and activities as an external complaints body for that year, which report is to include

    • (i) information about

      • (A) its constitution, governance and terms of reference, and the identity of its member institutions,

      • (B) all sources of funding for its functions and activities as an external complaints body, including the fees charged to each of its member institutions for its services and the manner in which those fees are calculated, and

      • (C) the results of the most recent evaluation referred to in paragraph (l),

    • (ii) a summary of the results of any consultation with its member institutions and with persons who made complaints to it,

    • (iii) in respect of each of its member institutions, the number and nature of complaints that it received, the number of complaints that it determined were within its terms of reference, the number of final recommendations that it made and the number of complaints that, in its opinion, were resolved to the satisfaction of the persons who made them,

    • (iv) the average length of time taken to deal with complaints,

    • (v) the number of complaints that it determined were not within its terms of reference and the reasons for that determination,

    • (vi) the number of final recommendations that it made in which compensation was recommended, and

    • (vii) the average and total compensation provided with respect to complaints that it determined were within its terms of reference;

  • (k) without delay after it is filed with the Commissioner, make the report available on its website free of charge and provide it to any person who requests it;

  • (l) submit, every five years, to an evaluation, conducted by a third party in accordance with terms of reference that are established by the body corporate in consultation with the Commissioner, of the performance of its functions and activities as an external complaints body; and

  • (m) meet any prescribed condition.

Marginal note:Notice of transfer of membership

 An institution shall give the Commissioner and the external complaints body of which it is a member written notice of a request, or an intention to make a request, to become a member of another external complaints body at least 90 days before the day on which it becomes a member of that other body.

Marginal note:Designation of body corporate

  •  (1) The Minister may, for the purpose of this section, designate a body corporate incorporated under the Canada Not-for-profit Corporations Act to be an external complaints body if the body corporate’s purpose is, in the Minister’s opinion, to deal with complaints referred to in paragraph 627.43(1)(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints.

  • Marginal note:Effect of designation

    (2) If a body corporate is designated under subsection (1), no approval may be given under subsection 627.48(1) and any approval that has been given under that subsection is revoked, and any complaint pending before a body corporate approved under subsection 627.48(1) shall be taken up and continued by the body corporate designated under subsection (1).

  • Marginal note:Obligation to be member

    (3) Every institution shall be a member of the body corporate that is designated under subsection (1).

  • Marginal note:Directors

    (4) The Minister may, in accordance with the letters patent and by-laws of the designated body corporate, appoint the majority of its directors.

  • Marginal note:Not an agent

    (5) A body corporate designated under subsection (1) is not an agent of Her Majesty.

  • Marginal note:Designation to be published

    (6) A designation made under subsection (1) shall be published in the Canada Gazette.

Marginal note:Provision of information — external complaints body

 An institution shall provide the external complaints body of which it is a member with all information in its possession or control that relates to a complaint without delay after the external complaints body notifies it that the complaint has been received in respect of it.

Marginal note:Provision of information

 If an institution or a body corporate is required under sections 627.43 to 627.52 to provide information, it shall do so in a manner, and using language, that is clear, simple and not misleading.

Marginal note:Content of Commissioner’s report

 The Commissioner shall include in the report referred to in section 34 of the Financial Consumer Agency of Canada Act

  • (a) the procedures for dealing with complaints established by institutions under paragraph 627.43(1)(a);

  • (b) the number and nature of complaints that have been made to the Agency; and

  • (c) a summary of the information referred to in section 627.47 and the information in the report referred to in paragraph 627.49(j).

DIVISION 3Disclosure and Transparency for Informed Decisions

Key Product Information

General Requirements

Marginal note:Disclosure of information

  •  (1) If an institution is required under this Division to disclose information, it shall do so in a manner, and using language, that is clear, simple and not misleading, and shall do so in writing, unless otherwise provided for under this Division.

  • Marginal note:Agreement by telephone

    (2) Subject to the regulations, an institution that enters into an agreement with a person orally by telephone in respect of a product or service in Canada is deemed to have disclosed in writing the information referred to in subsection (1) if it

    • (a) discloses orally to the person, before entering into the agreement by telephone,

      • (i) the information or any prescribed portion of the information, and

      • (ii) any prescribed information; and

    • (b) provides the information in writing to the person without delay after entering into the agreement.

Marginal note:Disclosure — customers and the public

 If an institution is required under this Division to disclose information to its customers and to the public, it shall do so by

  • (a) displaying the information prominently

    • (i) at each of its branches in Canada where it offers products or services and at each of its points of service, and

    • (ii) on each of its websites through which it offers products or services in Canada; and

  • (b) providing the information in writing to any person who requests it.

Marginal note:Information box

  •  (1) If an institution is required under this Division to disclose information in an application form or before entering into an agreement in respect of a product or service, it shall, at the time of that disclosure, disclose the information that is prescribed by presenting it prominently in a single prominently displayed information box.

  • Marginal note:Information box — disclosure by telephone

    (2) An institution shall orally draw attention to the information that is required to be disclosed in the information box when

    • (a) the institution solicits applications for the product or service from a person orally by telephone; or

    • (b) a person contacts the institution orally by telephone for the purpose of applying for the product or service.

Marginal note:Resource person

 Subject to the regulations, an institution shall, before entering into an agreement with a person by electronic means or by mail in respect of a product or service in Canada, provide the person with the local or toll-free telephone number of a natural person who is an employee or agent of the institution and who is knowledgeable about the terms and conditions of the agreement.

Marginal note:Other products or services

 An institution shall, before entering into an agreement with a natural person in respect of any product or service in Canada to be provided on an ongoing basis and for which disclosure obligations are not otherwise provided under this Division, disclose to that person

  • (a) the features of the product or service;

  • (b) a list of all charges and penalties applicable to the product or service;

  • (c) particulars of the person’s rights and obligations in respect of the product or service;

  • (d) the information referred to in paragraphs 627.65(a) to (c); and

  • (e) any prescribed information.

 
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