Filing a Complaint Against Your Bank in Canada: A Step by Step Guide

Let’s face it, not every banking interaction is seamless. There may come a time when you need to make a complaint against your bank. Given the size of the institution, it might seem like an overwhelming task, but it’s actually quite straightforward. Canada has a clear, regulated process that every bank must follow when you raise a concern. Your job? Just follow the steps, document what happened and escalate your case if necessary. 

In this guide, we’ll walk you through each step, including how to file a complaint, what to expect, and where you should go if the bank doesn’t respond fairly.

Your Rights as a Canadian Banking Customer

Before you make a complaint to your bank, it’s helpful to know how the rules protect you. In Canada, banks must follow the Bank Act. They are also responsible for following the standards enforced by the Financial Consumer Agency of Canada (FCAC). This agency oversees how banks treat customers. More importantly, they are there to respond if a bank fails to follow the rules. These protections ensure that any concerns or complaints you have won’t just disappear. Instead, the FCAC ensures each complaint gets handled seriously and your rights are protected.

As a customer, you have the right to receive a “substantive written response” from your bank and can escalate the case to an external complaints body if the bank’s answer doesn’t solve the issue. You also have a right to raise your concerns without penalty or the risk of retaliation. 

Banks must also respond to any concerns within a 56-day timeframe and direct you through their complaints process. If they fail to do so, it’s also an issue that you can raise with the FCAC.

Step 1: Start With Your Bank’s Internal Complaint Process

If you have a complaint, the first step is to take it up directly with your bank. Begin by contacting customer service or visiting your local branch. Explain the issue clearly. The goal here is simple: to get the problem on the record. Be sure to ask for a case or reference number for if you need to escalate the issue later.

When you speak to the bank, be prepared. Have documentation, including statements, emails, screenshots, and contracts that can support your case. As you outline your complaint, focus on three things:

1. What went wrong
2. How it affected you
3. What you want the bank to do

The more clearly you present this, the easier it is for the bank to understand the issue and offer a resolution in turn.

The reason you should start by discussing the problem directly with the bank is because this is the stage where many complaints get resolved. If it doesn’t, then you can follow the bank’s escalation path. Typically, a bank’s customer service department can provide you with information on the next steps. At the initial stages, it usually involves escalating the problem from the customer service representative to a branch manager. Then, to the bank’s senior resolution team. The FCAC requires that banks have an internal complaints process, though the structure of that process will vary by bank.

Step 2: Escalate to the Bank’s Senior Complaints Office

If your issue does not get resolved at the first level, it’s time to escalate. You will know it’s time for this step when the bank’s response feels incomplete, delayed or inconsistent.

Federally regulated banks in Canada must have a higher-level complaints process. In this step, you are likely sending your case to the bank’s senior complaints office or internal ombudsman, though the exact department varies bank to bank. Regardless of the department’s name, their job is to look at your case and conduct an investigation based on the information you provide. They will review your file and the documents, then issue a final written response.

When you escalate the matter, be sure to include the following information:

• Your case number
•  The timeline of events
•  Copies of statements
•  Any written communication you have had with the bank so far

Providing a clear record will strengthen your position.

Step 3: File With an External Complaints Body

If the bank’s final response still doesn’t resolve your issue, your next step is to take the complaint outside the bank. This is where Canada’s external complaints body comes in. Every federally regulated bank must belong to the Ombudsman for Banking Services and Investments (OBSI) organization. You have the right to take your case forward to them once your bank issues its final written decision.

The group operates independently from the banks and takes a neutral look at your case. OBSI can also recommend compensation of up to $350,000 for “any loss, damage or harm.”

It’s important to know what to expect. The decision from the organization is independent and, more importantly, non-binding. While the banks are not obligated to follow the decision, most do because the process is publicly reported and heavily monitored.

Step 4: Contact the Financial Consumer Agency of Canada (FCAC)

If your concern is that the bank did not follow required laws, disclosures, timelines, or complaint-handling procedures, you can report the issue to the Financial Consumer Agency of Canada (FCAC), which oversees bank compliance but does not resolve individual disputes or award compensation.

Instead, the FCAC oversees whether banks follow federal laws, consumer protection rules, and mandatory complaint-handling procedures. When a bank fails to follow its own escalation process or provides unclear disclosures, then the FCAC can step in. The same is true if the bank engages in misleading sales tactics.

This level is helpful when the problem involves issues like unexplained fees, forcible sales practices or if bank employees refuse to give you information about the institution’s complaint process. By reporting these problems to the FCAC, the agency can work to identify patterns and investigate compliance failures. They can take action if the bank isn’t following the applicable consumer protection laws.

When Legal Advice or Regulatory Support Is Needed

With the above steps in place, your complaint will likely find a resolution in the early stages. If not, though, you can always pursue legal action if necessary. In cases of fraud, major financial losses, privacy breaches or discrimination, you likely need to seek outside support. Sometimes urgently.

If you find yourself in this situation, consider reaching out to your provincial consumer protection agency for guidance. This is especially important if the issue involves misleading practices or unfair treatment.

While your complaint is unlikely to make it to this step, it’s helpful to know the option exists if your situation demands it.

Tips to Strengthen Your Complaint

To give yourself the best chance at a fair outcome, keep the following strategies in mind:

• Keep a clear timeline of events
• Save each piece of correspondence (emails, chat logs, letters, etc)
• Communicate in writing whenever possible
• Stay factual and concise when logging your complaint
• Request everything in writing from the bank including their explanations and decisions
• Know your desired outcome (refund, fee reversal, account correction, etc)

Takeaway

Filing a complaint against your bank isn’t always pleasant, but it shouldn’t be intimidating. Canada’s system gives you a clear step-by-step path that protects your rights and ensures the bank takes your concerns seriously.

Start with the bank directly, but know you can escalate when needed. If you stay organized, keep strong records and understand your options, you can navigate the process. Most issues find a resolution well before legal or regulatory intervention, but it’s reassuring to know those avenues exist if you ever need them.

Remember, your complaints matter. They strengthen the system for everyone.