From: XXXX Sent: December-06-13 12:14 AM To: Consumer Code / Code consommateur Subject: Banking Dear Sir/Madam, I rarely air my opinion, but hope my blood pressure will experience a healthy drop after sharing my views. As you can tell from the above I am a novice, but volunteering with people facing hardship, (seniors) I am saddened by how many have an old fashioned belief that the 'bank and it's staff' exist to ' help them' with their money concerns. They do not understand that 'todays banks are only in business to make profits for their share holders. Approaching retirement, I have banked with one bank since the age of 22. In that time, unlike other services I use, the bank (XXXX) has never had a customer appreciation 'gift' or incentive for my being a long standing customer.The fact they have had my mortgage, my RRSP'S and my chequing account appears to have mattered little. I am not wealthy by any means, however, I have never had an NSF cheque or reneged on any agreement with the bank. So I would say I was a good customer. ( for 40 year). However, earlier this year, despite filling the annual paperwork required to determine my understanding of the 'vagaries' of the RRSP'S my 'financial adviser' - somehow omitted to clarify the fees associated with Monkey Markets. I then questioned him further... 1) Why were only certain funds were available. ( XXXX's own) 2) Why were ETF's not suggested to me earlier - since they have lower fees. 3) Why in a period of high returns on both the Canadian and US stock exchanges had I only managed to make a few thousand on 1/2 a million. None of his answers held water. With a flash of nausea-filled insight, it dawned on me that 'my' financial adviser was not in business to advise me....but rather to sell me financial 'products' that would... 1) Provide the best return for his bank 2) Enhance his salary. OF course...after these too appetites are met, there is little left to fatten' my hard earned savings. Initially mortified at my naivety - i'm now angry. Although not financially savvy, i am not a complete imbecile. If I had the wool pulled over my eyes, there are likely others who are being fleeced for the sake of bank profits. ( I am not against profits - BUT I am very angry when an organization does not show transparency in their dealings with customers. ( And NO those annual tick-box forms mentioned earlier do not count as transparency) If this were a 'retail' situation, there would stricter rules. Changes that would be helpful to consumers. 1. Clearly indicate that 'financial advisors' are not there to advise the customers on how to best maximize their assets. They are 'Financial Salesmen' ( like car salesmen) 2. A policy that ensures the customer knows the EXACT cost of any transaction they enter into. including - on going or closing costs. (Using 'plain speak'.) 3. A non-banking organization should be created to educate the consumer on how best to manage their finances.( this education should be tailored to the culture/ age/ financial status of the audience to make it relevant) Finally, today I closed my chequing account with XXXX. In their fiscal wisdom they tell me in order to avoid bank fees I must have $15000.00 - not $1000.00 in my account. (while PC is currently running 2.25% promotion on their savings account- go figure) I would willingly pay NSF fees should a cheque I wrote bounce -BUT I refuse to pay a fee to an company that arbitrarily decides they want to punish me for not having a certain amount sitting in acct. that offers no interest. Insanity! I have moved to a credit union and will not consider a bank until things change. The government needs to update banking rules to address the balance between the larger banks and their customers. I know many of my peers agree and would vote accordingly. Many thanks for reading this. (my blood pressure is now within normal limits :-) Re: Specific questions asked 1. Establishing a Comprehensive Set of Principles for Consumer Protection To achieve a framework that is more adaptable to changes in the financial marketplace, products and technology, the government is considering the merits of adopting standards or principles to anchor the financial consumer code. * Should the government adopt a set of principles to govern financial consumer protection that would be applicable even where specific regulations have not been enacted? YES. REGULATIONS TAKE ALONG TIME TO IMPLEMENT - IN THE MEANTIME BANKS HAVE FREE REIGN? * If so, how should a set of principles be administered? IN THE SAME WAY OTHER INSTITUTIONS are HELD ACCOUNTABLE. ( HOSPITALS - UNIVERSITIES have to abide by rules that protect their user eh * What should be included in a set of principles that would form the basis for financial consumer protection? TRANSPARENCY OF FEES, EDUCATION FOR THE GENERAL PUBLIC (AT THE BANK LEVEL NOT ON FCAC WEB SITE) AN ARBITRATION PROCESS BY WHICH DISPUTES COULD BE RESOLVED. A CAP ON REASONABLE ADMINISTRATION FEES. THE BANK WOULD NEED TO PROVE THAT THESE COSTS WERE IN LINE WITH THE PROCESS OF DOING BUSINESS NOT AS A REVENUE STREAM. INCREASED AUTOMATION SHOULD REDUCE NOT INCREASE THESE. THE AIM SHOULD BE TO AVOID COMPLAINTS RATHER THAN HAVE A PROCESS TO DEAL WITH THEM. MY HUNCH IS MANY COMPLAINTS REVOLVE AROUND SIMILAR ISSUES. THE SOLUTION IS DEAL WITH THE ISSUES RATHER THAN ENHANCING THE DISPUTE PROCESS? * What elements should be set out under each principle to ensure that the principles are meaningful, measurable and fair to consumers and financial institutions? REPRESENTATIVES FROM CONSUMER GROUPS AND THE BANKING SECTOR SHOULD MEET AND HASH THIS OUT. A PILOT PROJECT COULD TEST EFFECTIVNESS 2. Possible Enhancements to Existing Regime In the context of developing a comprehensive consumer code, the government is interested in hearing from Canadians with respect to enhancing protection for consumers, including: a) Addressing the Needs of Seniors and Vulnerable Canadians Some Canadians may face particular challenges in accessing financial services and in assessing the most appropriate financial products for their needs. Geography, cultural and financial literacy or capacity to process information may pose obstacles to some groups. * What are the unique challenges faced by vulnerable Canadians? ACCESSIBILITY ( housebound) - COMPREHENSION OF THE EVERY CHANGING RULES AND SYSTEMS THEY MUST NAVIGATE IN ORDER TO MANAGE THEIR MONEY. FEAR OF APPEARING 'STUPID' MEANS SENIORS ARE OFTEN EMBARRASSED TO ASK QUESTIONS. OPEN TO FINANCIAL ABUSE by both FAMILY AND OUTSIDERS. * How should the consumer code address these challenges? EDUCATING THE BANKS ON THE UNIQUE MENTAL, EMOTIONAL AND PHYSICAL CHALLENGES THEIR SENIOR CUSTOMERS EXPERIENCE. (THERE ARE PLENTY OF US WITH THE EDUCATION! TRAINING AND INSIGHT TO BE PART OF THAT EDUCATION) b) Responsibility of Financial Institutions to Consumers The existing consumer protection regime is detailed and prescriptive in nature and does not contain a general expectation for the degree of responsibility financial institutions should have to consumers. This can lead to uncertainty regarding financial institutions' obligations to consumers when new products or services are developed, including an assessment of the risks these products or services may pose to consumers. * Would it be useful to have in legislation a broad standard of responsibility for financial institutions to consumers and, if so, what level of care should consumers expect from financial institutions? YES of COURSE. WITHOUT KNOWING WHAT THE KEY AREAS OF COMPLAINT ARE NATIONALLY - DON'T KNOW THE LEVEL OF CARE NEEDED. SHOULD BE BASED ON WHERE THE DEFICITS ARE. * How should this standard be administered or enforced? TO A DEGREE IT COULD ENFORCE ITSELF. BANKS WITH EXCELLENT STANDARDS WOULD RETAIN CUSTOMERS, THOSE WITH POOR STANDARDS WOULD LOSE CUSTOM. TODAY'S SENIORS WILL VOTE WITH THEIR FEET. AND HOPEFULLY THOSE UNABLE TO WILL FIND ADVOCATES TO HELP THEM. HOWEVER, SOME 'POLICING' WOULD BE REQUIRED. HOPEFULLY NOT ENOUGH TO MAKE THE WHOLE THING TOO COSTLY TO IMPLEMENT. I SUSPECT CLIENTS WOULD BE PREPARED TO PAY A SMALL FEE TO IMPLEMENT SOME OF THESE? * How should financial institutions' business practices be evaluated to ensure that they are meeting their responsibilities to consumers? BY NON PARTISAN EXPERTS WHO HAVE NO HIDDEN AGENDA. ( NO EVALUATOR CAN BE IN THE POSITION FOR LONGER THAN 2 YEARS) c) Supervisory Powers for Accountability and Enforcement The FCAC was established to strengthen oversight of consumer issues and expand consumer education in the financial sector. The supervisory agency plays an important role in consumer protection using its administration and enforcement powers. The government is considering whether changes are needed to the legislative framework in order to allow the FCAC to better supervise and enforce consumer protection provisions. * What tools and authorities will the FCAC need in order to effectively supervise and enforce the implementation of a principles-based financial consumer protection framework? * Should consumers have greater access to recourse, beyond the FCAC, in the federal consumer protection framework? YES. BUT MOST CUSTOMERS NEED AN EASIER, PLAIN-SPEAK, LOCAL APPROACH. ( SIMILAR TO A LEGAL AID CENTRE) d) Innovation Banking products and services have evolved significantly over the last few decades as financial systems have grown and the number and variety of financial products in the marketplace has expanded. Digital innovation has also led to an increase in consumer choice for accessing financial products and services. * How should the consumer protection framework accommodate emerging technologies and financial products? WITH LITTLE I.T.KNOWLEDGE I AM NOT MUCH HELP. BUT TECHNOLOGY IS OF LITTLE HELP IF THE BALANCE OF POWER IS NOT MORE EQUITABLE. e) Disclosure About Financial Products and Services The government has used disclosure requirements as a key tool to provide Canadians with information to make responsible financial decisions. In an effort to be comprehensive and enable consumers to make responsible financial decisions, the government is seeking views on what key information elements are needed and what are the most effective forms of disclosure to help consumers to understand and compare products. * What key information do consumers need and how should it most effectively be presented to allow consumers to make informed financial decisions? FEES. THE FACT THAT ADVISE GIVEN IS WITH STRINGS ATTACHED. * Are there particular products or circumstances in which disclosure is not sufficient to provide consumers with the information needed to make responsible financial decisions? What enhancements to disclosure would provide Canadians with information to make responsible financial decisions? MERS - TAX IMPLICATIONS OF SOME CHOICES. STOPPING BANKS FROM ENCOURAGING CUSTOMERS TO TAKE ON MORE DEBT. ( few of us are ' richer than we think') SINCE MOST BANK CUSTOMERS ARE NOT ACCOUNTANTS RATHER A PERSON SELLING A FINANCIAL PRODUCT SHOULD BE LEGALLY BOUND TO EXPLAIN THE PROS AND CONS. ( IN THE SAME WAY A PHYSICIAN IS. FINANCIAL HAS AN IMPACT ON PHYSICAL HEALTH, and IF GOVERNMENT WANTS TO KEEP THOSE COSTS DOWN THEY BETTER HELP CANADIANS SUPPORT THEMSELVES AS BEST THEY CAN. f) Access to Financial Services The government continues to be committed to facilitating affordable access to basic banking services for all Canadians. * How could the code ensure reasonable access to basic banking services for all Canadians? * Are there examples where access to financial services is difficult or constrained? How could these situations be addressed in the consumer code? g) Comprehensiveness The financial consumer code should comprehensively protect consumers of financial products and services. In addition to addressing the elements described above, the government seeks views on any other elements that could be considered in order to achieve the objective of a comprehensive consumer code. * What needs to be included in order to achieve the objective of a comprehensive financial consumer code? 3) Continuing the Conversation: Engagement By working together we can continue to position Canada as a leader in financial services regulation, including financial literacy, financial inclusion and financial consumer protection policy. To do so will require the active engagement of all stakeholders, including individual Canadians, financial institutions and consumer groups. * Should the government consider mechanisms for enhancing engagement among stakeholders in regulatory, supervisory and compliance processes related to consumer protection? YES * How could consumers and consumer groups best contribute to these processes, and what might their role be? HAVE TOWN HALL MEETINGS TO UNDERSTAND THE MOST PREVALENT CONCERNS OF CONSUMERS? Sent from my iPad