Mistakes, Complaints and Official Sources
How to complain about a personal loan in Canada: lender, OBSI, FCAC and provincial offices
The complaint path for personal loan problems in Canada: your lender's process, OBSI for banks since November 2024, the FCAC's role, and provincial offices for other lenders.
If you have a problem with a personal loan, complain to the lender first, in writing. If the lender is a bank and you are not satisfied, since 1 November 2024 the single external complaints body for all banks is the Ombudsman for Banking Services and Investments (OBSI), which is free and can recommend compensation of up to $350,000. The Financial Consumer Agency of Canada (FCAC) does not resolve individual disputes, but it supervises whether banks follow federal consumer protection law and you can report a concern to it. For credit unions, finance companies, online lenders, payday lenders and loan brokers, the route usually leads to your provincial consumer protection office or regulator.
Part of personal loan mistakes and official sources. General information; check current procedures on each body's website.
Which route applies
| Your lender | Step 1 | Step 2 | Also |
|---|---|---|---|
| Bank (including online banks) | Bank's internal complaint process | OBSI | Report compliance concerns to the FCAC |
| Federal credit union (governed by the Bank Act) | Its internal process | The external complaints body named in its process (check; OBSI for banks) | FCAC |
| Provincial credit union or caisse | Its internal process | The ombudservice or regulator named in its process (varies by province; in Quebec the AMF for caisses) | Provincial regulator |
| Finance company, online lender, retailer financing | Lender's complaint contact | Provincial consumer protection office | Small claims court |
| Payday or high-cost lender | Lender | Provincial office that licenses it | Provincial office can inspect and penalize |
| Loan broker or scammer | — | Provincial office; police and the Canadian Anti-Fraud Centre for fraud | See advance-fee scams |
Step 1: complain to the lender
A good complaint is short, specific and documented:
- What happened: dates, amounts, account number.
- What rule or term you think was broken: for example, a prepayment charge on a bank's consumer loan, an APR that differs from the disclosure statement, insurance added without consent.
- What you want: a refund, a correction, a written explanation, removal of a fee.
- Evidence: the agreement, disclosure statement, statements, emails, notes of calls.
Ask for a file number and the name of the person handling it. Banks must have a complaint procedure and give you information on how to escalate. Keep copies of everything.
Step 2: OBSI for banks
Since 1 November 2024, OBSI is the external complaints body for every bank in Canada; before that, some banks used a different body. Key points, as described by OBSI and the federal government:
- OBSI is free for consumers.
- You can usually go to OBSI once the bank has given its final response, or if 56 days have passed since you complained to the bank without a resolution.
- There is a time limit to bring the complaint to OBSI after the bank's final response, generally 180 days; check the current rule on OBSI's site.
- OBSI investigates and can recommend compensation up to $350,000. Its recommendations are not legally binding, but the federal framework is designed to make them effective.
- Using OBSI does not stop you from going to court, but limitation periods continue to run; get legal advice if the amount is large.
The FCAC's role
The FCAC enforces the consumer provisions of the Bank Act and its regulations, including disclosure, prepayment and tied-selling rules. It:
- publishes consumer guidance,
- supervises banks' compliance and can impose penalties,
- accepts reports from consumers about possible breaches,
- does not act as your advocate or order a refund on your individual complaint.
Reporting to the FCAC is still useful: patterns of complaints can lead to supervisory action.
Provincial offices for other lenders
Provincial consumer protection offices license and inspect payday lenders, high-cost credit lenders (in several provinces), collection agencies and loan brokers. Examples:
- Ontario: Consumer Protection Ontario handles complaints under the Consumer Protection Act, 2002 and the Payday Loans Act, 2008.
- Quebec: the Office de la protection du consommateur (OPC) for the Consumer Protection Act; the Autorité des marchés financiers for caisses and insurance.
- British Columbia: Consumer Protection BC for payday and high-cost credit.
- Alberta, Saskatchewan (FCAA), New Brunswick (FCNB) and other provinces have equivalent offices.
These offices may mediate, investigate or prosecute, but they do not always obtain refunds for individuals. Small claims court is an option for disputes within its monetary limit, which varies by province.
What to complain about: common examples
| Problem | Rule to mention |
|---|---|
| Charged a fee for paying a bank loan early | Bank Act s. 627.28 (no prepayment charge on non-mortgage fixed-amount consumer loans) |
| Prepayment penalty from an Ontario non-bank lender | Consumer Protection Act, 2002, s. 76 |
| APR above 35% | Criminal Code s. 347 |
| Insurance added without clear consent | Coercive tied selling (Bank Act) or provincial rules |
| Payday lender charged more than $14 per $100 (payday rules) | Criminal Interest Rate Regulations; provincial payday law |
| Disclosure statement missing or wrong | Financial Consumer Protection Framework Regulations or provincial disclosure rules |
| Harassing collection calls | Provincial collection agency laws |
Frequently asked questions
How long will the process take?
Lenders often resolve complaints within a few weeks. OBSI investigations can take longer, depending on complexity. Keep paying the loan unless a lawyer advises otherwise; missed payments can lead to default charges and credit damage.
Can I complain about a loan that is already paid off?
Yes, within the time limits. Keep your records after the loan ends.
Will complaining affect my credit?
Making a complaint does not affect your credit report. If a dispute is about information reported to a credit bureau, you can also dispute it directly with Equifax Canada and TransUnion Canada.
Can I get help writing a complaint?
Community legal clinics, non-profit credit counsellors and some consumer organizations can help. OBSI and provincial offices also explain what information they need.
Sources
- OBSI — how to file a complaint, time limits and compensation limit
- Financial Consumer Agency of Canada — complaints about banks and reporting concerns
- Consumer Protection Ontario — complaints against Ontario businesses
- Office de la protection du consommateur — complaints in Quebec
- Consumer Protection BC — complaints in British Columbia
