Complaints against banking and investment firms ticked up in the second quarter, according to data published Wednesday from the Ombudsman for Banking Services and Investments (OBSI).
Complaints edged up in the second quarter (Q2 2018), driven by an increase in banking complaints, which generated 107 cases, up from an average of 91 in the previous eight quarters. This represented an 18% increase, the dispute resolution service says in a newsletter.
There was a modest increase in the volume of investment complaints, which rose to 84 cases in Q2 2018 from 81 cases in Q1 2018.
Among banking customers, there was a “significant increase in complaints related to personal transaction accounts” in Q2 2018, OBSI says.
Mortgage-related complaints returned to their quarterly average after a spike in Q1 2018. Fraud-related complaints, which increased in Q2 2018 represented the top issue in the quarter. Fraud complaints supplanted “service issues,” which fell to fifth place.
On the investment side, there wasn’t as much change in the source of complaints, OBSI says. Suitability remained the biggest issue for investment complaints, despite dropping notably during Q2 2018.
“The categories comprising the top five investment issues did not change in the second quarter of 2018,” OBSI says.
The investment products that produced complaints in Q2 were “within the expected ranges based on past averages,” it adds.
“Common shares have switched spots with mutual funds as the leading investment product. Scholarship trust plans, derivatives and preferred shares were below the quarterly average,” OBSI says.