Decision #97815-974Q203

From: Financial Consumer Agency of Canada

File: 97815-974Q203

Compliance issue

Branch Closure — Failure to inform customers how to contact FCAC/Failure to inform customers of the conditions under which the Commissioner may require a public meeting
Bank Act, s 459.2
Notice of Branch Closure (Banks) Regulations, ss. 5(4)(f) and (g)

A bank sent out notice to its affected customers and the public of a branch closure but failed to disclose all of the information required by paragraphs 5(4)(f) and (g) of the Regulations. Specifically, the notice did not provide a description of how the Commissioner may be contacted, did not inform consumers that the Commissioner may require a public meeting between the bank, interested parties and FCAC to discuss the closure further, and did not inform consumers of the conditions under which he may do so.

Compliance measure(s) taken

Letter of ReprimandFootnote 1  noting two violations against the bank.

Compliance considerations

The bank did not offer a reasonable explanation of why it was unable to notify customers in accordance with the Regulations. There were no previous violations of these Regulations noted against the bank.

Corrective measures taken by financial institution

  • Modified its customer notification template to inform affected customers of their right to contact FCAC and of the conditions under which the Commissioner may require a public meeting.

Outcomes

By making certain that consumers are aware of how to contact the Commissioner and of the conditions under which the Commissioner can require a public meeting, FCAC and the bank ensure that consumers have the opportunity to communicate openly with FCAC and their bank to explore ways of easing any negative impact the closure may have on their lives or on the community as a whole.

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