ADR Chambers versus OBSI

This is ongoing: Flaherty has agreed to independent third party contractors to arbitrate consumer banking complaints in Canada. You should know my views on this, I did a blog, but the guy who is doing most of the work on this at the moment is Ken Kivenko.  Here is a further and interesting comment from him:

What is the real status of the ADR Chambers Banking Ombudsman (ADRBO)?:

According to our research, ADRBO , used by TD Bank and RBC Bank for banking disputes, for “independent” dispute resolution does not fall under the Joint Forum Framework [ OBSI does ,which makes it a legitimate third party resolver ] ADRBO is not monitored by FCAC either, mostly because Finance Department approval rules for contracted Ombuds services don’t yet exist. In effect, no one provides oversight of ADRBO. Also, under most provincial Limitation Acts ,bringing a dispute to a independent third party complaint resolver stops the limitation time clock. Is ADRBO really an independent third party resolver? A lack of transparency of ADRBO’s operations , compensation statistics and governance structure is another concern. Finally, there’s the question of third party – is ADRBO a third party if the financial consumer has no choice but to accede to a decision from a party paid for by the banks? That’s why we ask:Is the limitation clock really stopped in law? This is a tenuous situation for retail banking consumers. [ In Ontario ,the limitation period is set out in s. 4 of the Limitations Act, 2002: it is a mere two-years]

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