Bank and Customer Dispute Resolution

• Author: M.H. Ogilvie
• Profession: Professor of Law, Carleton University
• Pages: 402-411

CHAP TER 13

BANK AND CUSTOMER

DISPU TE R ESOLUTION

A. INTRODUCTION

Banks are large, complex organizations, and ban king involves complex

services and legal relationships managed by fallible individual s for fal-

lible individuals. Errors occur and must be corrected. In most instan-

ces, this can be done simply at the branch when either the bank or the

customer notices the problem and secures an immediate resolution.

Occasionally, there is a difference of opinion as to t he correct solu-

tion, and third part y intervention may be required to determ ine what

that solution is. Alternative di spute resolution (ADR) for customers

has been available in the Canadian b anking context since 1994, when

individual banks implemented internal di spute resolution procedures

for their own customers, followed in 1996 by the establi shment of the

Canadian Ba nking Ombudsman (CBO) by the banking sector to hear

appeals from individual bank processes. In this, Canada followed the

implementation of banking ombudsma n schemes in other common law

countries, including the United Ki ngdom (1986), Ireland (1990), Aus-

tralia (1990), and New Zealand (1992).1

1 See generally M.H. Og ilvie, “Banking Ombud smen: A Necessary Ev il or Simply

Not Necessary?” (1996) 11 B.F.L.R. 167 and Jacqueline J. Williams, “Canadian

Financia l Services Ombudsme n: The Role of Reputational Persuasion” (200 4)

20 B.F.L.R. 41.

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