Canadian banks must now resolve complaints within 56 days with no pause

Canada's banking regulator has tightened the rules for how banks handle customer complaints, requiring resolution within a legislated 56-day period without interruption.

The Financial Consumer Agency of Canada (FCAC), a watchdog for federally regulated financial entities, published updated complaint-handling guidelines for banks on Tuesday. Banks must now comply with obligations laid out in the Bank Act and the Financial Consumer Protection Framework Regulations—including establishing complaint-handling procedures, adhering to prescribed timelines, and communicating clearly with customers.

"FCAC revised the Guideline to reflect the supervisory observations the Agency has made since its introduction in 2022 and to clarify expectations for how banks meet their legislative obligations," the FCAC said. The update reinforces expectations that banks implement complaint-handling processes that are effective, timely, and accessible.

Key changes include: banks must provide customers with a clear and timely acknowledgement confirming receipt of a complaint, including key information about the process, applicable timelines, the steps involved, and what the customer can expect next. Banks must also clearly indicate when they've provided their final response, issuing a Notice of Final Decision at the conclusion of any complaint not resolved at the first stage. Customers must be informed of their right to escalate to an external complaints body.

The revised guideline makes explicit banks' obligation to have a comprehensive policy to provide timely redress where required, and clarifies the FCAC's expectation that banks provide consumers with timely remediation for harm based on the circumstances of the complaint.