This is serious. The Canadian government launches investigation of Canadian banks for consumer violations
The regulatory agency, the Financial Consumer Agency Of Canada, has launched an investigation of the big banks into the way the banks deal with their customers.
But the whole investigation is shrouded in secrecy.
Customers who complained to the agency will not find out whether their complaints or those of others are part of the investigation.
Nor will be Canadians be told the scope of the investigation and which banks are under investigation.
And worse yet, the findings of the investigation will be kept secret.
The crux of the problem and how banks are treating their customers is simple – super aggressive.
As competition is heating up in our banking sector banks are becoming much more aggressive in how they get new customers.
Also there has been a slew of smaller younger banks that have come on to the scene.
So it becomes paramount that the big banks try to retain their customers or steal them away from other banks.
And that means banking personnel have to hustle harder and harder to snag those new customers.
The investigation came about because of a CBC program, Go Public.
The program featured employees of the big five banks saying they were pressured to dupe customers.
And that resulted in the agency doing a first in its history.
For nine months employees at TD, Scotiabank, BMO, CIBC, RBC and National Bank were interviewed – a total of more than 600 employees.