Bank and Customer Dispute Resolution

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

CHAPTER 13

BANK AND CUSTOMER

DISPUTE RESOLUTION

A. INTRODUCTION

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

services and legal relationships managed by fallible individuals 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 the correct solu-

tion, and third party intervention may be required to determine what

that solution is. Alternative dispute resolution (ADR) for customers

has been available in the Canadian banking context since 1994, when

individual banks implemented internal dispute resolution procedures

for their own customers, followed in 1996 by the establishment of the

Canadian Banking 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 Kingdom (1986), Ireland (1990), Aus-

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

1See 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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