HASH(0xb48654)

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

Banking ombudsman concerned about TD report

TORONTO — The head of Canada’s main financial services ombudsman says allegations about aggressive sales tactics by TD Bank employees raise “serious concerns” and the watchdog will be keeping an eye out to see if similar issues persist in the broader industry.

“We’ll certainly be monitoring our complaint volumes and monitoring the situation,” Sarah Bradley, the head of the Ombudsman for Banking Services and Investments, said in an interview Monday.

Bradley’s comments came in the wake of several CBC reports that current and former employees at TD (TSX:TD) alleged they broke the law to meet sales targets in order to stay employed. In some instances, unnamed employees claim to have made unauthorized transactions on behalf of clients. TD has denied the allegations.

Bradley is urging consumers who have encountered such issues to file a complaint with their financial institution.

“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

Just Posted

Caught on Camera: Boat catches fire at Kelowna marina

The cause of the fire is unknown at this time, no injuries were reported as a result of the blaze

Kelowna Chiefs win in epic overtime battle in emotional memorial night to late owner

The Chiefs hounoured Grant Sheridan with a win in the team’s home-opener

West Kelowna’s stuggles continue as Warriors drop game in Merritt

The Warriors gave up a 2-0 lead to lose 4-2 Friday night

West Kelowna won’t get an urgent care centre says health minister

Adrian Dix says other options are being considered to improve health services on Westside

Climate protesters temporarily shut down Bernard Avenue in Kelowna

Protesters are demanding politicans take action to stop climate change

VIDEO: Grizzly bears fight along northern B.C. highway in rare footage

Cari McGillivray posted the head-turning video, shot near Stewart, B.C., to social media

Handgun crackdown, health spending and transit plans latest campaign promises

Friday was the end of a busy week on the campaign trail

B.C. woman photographs massive ant swarm on Abbotsford driveway

She asked what the ants were doing? The answer: war

Police arrest B.C. phone scammer linked to illegal call centres in India

Person arrested in Burnaby here on a work visa, says police

Air Canada forced girl, 12, to remove hijab: civil rights group

The San Francisco Bay Area office of the Council on American-Islamic Relations calling for change

Man from Winnipeg who was hiking alone found dead in Banff National Park

RCMP say the man was hiking alone on Mount Temple Thursday

Okanagan hosts Mexico for soccer

The Okanagan Masters League won both matches against their Mexican counterparts

Takaya, B.C.’s intriguing lone wolf, seen eating seal and howling away on Discovery Island

Fun facts about Takaya the wolf, like his a 36-hour tour around Chatham, Discovery Islands

Graffiti, calls and Snapchat: RCMP probe string of threats targeting Kamloops schools

There have been nine different threats made to four different schools in the city

Most Read