TORONTO, July 18, 2019 /CNW/ - Older Canadians experience different challenges with the financial services they use than younger Canadians, according to a new report issued by the Ombudsman for Banking Services and Investments (OBSI). They are also more likely to file complaints about those services. While seniors represent less than a third of the Canadian population, they accounted for 38% of the complaints that OBSI received over a two-year period.
Today, OBSI released its first ever Seniors Report, documenting the experiences of seniors using its services. The national, not-for-profit organization collected demographic and case data for 2017 and 2018 to create the report, which used the age of 60 as the threshold age of a senior.
Demographics
The report shows that 38% of complaints to OBSI came from people over the age of 60 and that complaints from seniors are more likely to be made by men than women, especially for married complainants. Over half of these senior complainants report having household incomes below $60,000, while one-third are still active in the workforce. Most senior complainants live in an urban (53%) or suburban (27%) community. A disproportionate number come from Ontario (52%) relative its share of the Canadian senior population (38%), followed by British Columbia (13%), Alberta (12%) and Quebec (11%).
Banking services
Fraud is the most frequently reported banking issue for seniors. Credit cards are the bank product OBSI received the most complaints about from consumers over 60. Credit card chargebacks are the most complained about combination of bank product and issue. For seniors over 70, missing or lost funds also led as an issue for complaints. The report contains several case studies illustrating these issues.
Investments
The report showed that older Canadians are more likely than younger Canadians to file complaints relating to investment issues. Seniors' investment-related complaints related predominantly to mutual funds and common shares, and their complaints mostly focus on the advice that they received when making these investments. The suitability of common shares and mutual funds as well as fee disclosure were the most complained about combination of investment products and issues.
Case Studies
Included in the report are several case studies illustrating the issues most complained about by seniors, including cases of seniors who have complained about investing in high risk investments with unexpected fees, have found themselves holding investments they can't sell, have run into trouble with estate planning in times of crisis, have fallen victim to frauds, and have experienced problems with joint accounts and powers of attorney.
Observations
"OBSI has been helping Canadian consumers and financial services firms resolve their disputes for over 23 years," said Sarah Bradley, Ombudsman and Chief Executive Officer, OBSI. "We are well positioned to observe the difficulties that senior consumers can face when they have a problem with the financial services they use."
Some of the challenges faced by seniors that OBSI identified in its report include:
Policy and practical solutions
The report also highlighted a number of solutions financial services providers and regulators could consider to reduce the challenges faced by seniors, such as:
The 2019 Seniors Report can be found on our website in both English and French.
Canada's Ombudsman for Banking Services and Investments (OBSI) is a national, independent and not-for-profit organization that helps resolve and reduce disputes between consumers and financial services firms in both official languages. OBSI is responsive to consumer inquiries, conducts fair and accessible investigations of unresolved disputes, and shares its knowledge and expertise with the stakeholders and the public. If a consumer has a complaint against an OBSI participating bank or investment firm that they are not able to resolve with the bank or firm, OBSI will investigate at no cost to the consumer. Where a complaint has merit, OBSI may recommend compensation up to a maximum of $350,000.
SOURCE Ombudsman for Banking Services and Investments (OBSI)
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