Filing a consumer complaint

Search this thread

Last Updated:
Jan 28th, 2021 1:14 pm

Tags:

SCORE

Reply to ThreadReply

Search this thread

Nov 3rd, 2020 3:49 pm

Wilmega [OP]: Deal Addict; May 28, 2005; 2241 posts; 220 upvotes

Nov 3rd, 2020 3:49 pm

Filing a consumer complaint

HI RFD, wondering if it's too late to file a complaint or pursue legal action.

Cliffs:

My mom owed the National Bank of Canada $37K (roughly $12K remaining)
A financial institution had my mom take out a $100k loan and invest it in the market (around 2011)
Loaned got called in a few years later while the investment was in the negatives
Mom has not worked or had steady income for over 20 years
Has no knowledge of financial markets or investing
Has delusional schizophrenia (diagnosed in early 2000's and currently on medication)

Without giving too much details, i received a letter from the National Bank (addressed to my mom) to continue paying off her loan which she will. I'm just incensed to learn that a financial advisor or broker took advantage of her.

She's unable to fully explain to me what financial product she bought, what happened etc except that she knows she has to pay off this loan. Again sorry for the lack of details, I have to send the National Bank of Canada a letter with approval from my mom to gain access to her loan details.

Would like to know what recourse I can take, either file a complaint or take legal action. Since the initial investment/loan agreement happened in 2011 is that too long ago to take action?

signature removed for rule violations - no referrals allowed

19 replies

Nov 4th, 2020 9:07 am

tony311: Sr. Member; May 29, 2012; 530 posts; 197 upvotes; Southern Ontario

Nov 4th, 2020 9:07 am

That sucks, I'm sorry to hear about your mothers problem.
I do not have any direct help but I would recommend trying to find any documents your mom might have regarding the investment, at least try to find out who this investment advisor was.
I doubt they will do anything to help here but what I would try is a complaint to whatever regulatory body they are a member of.
Also don't let bank/investment company off the hook, also need to file a complaint with the ombudsman for banking, link here https://forms.obsi.ca/EN/Make-a-Complaint

It will be along drawn out battle but you never know what will happen if you don't try.

+1

Nov 4th, 2020 10:36 am

Wilmega [OP]: Deal Addict; May 28, 2005; 2241 posts; 220 upvotes

Nov 4th, 2020 10:36 am

tony311 wrote: ↑ That sucks, I'm sorry to hear about your mothers problem.
I do not have any direct help but I would recommend trying to find any documents your mom might have regarding the investment, at least try to find out who this investment advisor was.
I doubt they will do anything to help here but what I would try is a complaint to whatever regulatory body they are a member of.
Also don't let bank/investment company off the hook, also need to file a complaint with the ombudsman for banking, link here https://forms.obsi.ca/EN/Make-a-Complaint

It will be along drawn out battle but you never know what will happen if you don't try.

Thanks for the link, i wasn't sure where/who to file the complaint with. Hopefully i'm still within the timeframe to do so.

signature removed for rule violations - no referrals allowed

Nov 4th, 2020 11:26 am

skeet50: Deal Addict; Jan 15, 2017; 4109 posts; 3612 upvotes

Nov 4th, 2020 11:26 am

You should also find out who sold her the original investment and if possible, see if there are options to pursue actions against the advisor/company.

Nov 4th, 2020 11:45 am

Wilmega [OP]: Deal Addict; May 28, 2005; 2241 posts; 220 upvotes

Nov 4th, 2020 11:45 am

skeet50 wrote: ↑ You should also find out who sold her the original investment and if possible, see if there are options to pursue actions against the advisor/company.

i have the persons name and phone # now, the advisor no longer works for the company. I also see on the credit application there was no proof of income required. My mom wrote $4000/month income and the advisor signed as a witness. Really hope it's not to late to take action.

signature removed for rule violations - no referrals allowed

Nov 4th, 2020 11:54 am

CNeufeld: Deal Guru; Mar 23, 2008; 12331 posts; 8748 upvotes; Edmonton

Nov 4th, 2020 11:54 am

Wilmega wrote: ↑ i have the persons name and phone # now, the advisor no longer works for the company. I also see on the credit application there was no proof of income required. My mom wrote $4000/month income and the advisor signed as a witness. Really hope it's not to late to take action.

Have any steps been taken to prevent this from happening again?

C

Nov 4th, 2020 12:02 pm

Wilmega [OP]: Deal Addict; May 28, 2005; 2241 posts; 220 upvotes

Nov 4th, 2020 12:02 pm

CNeufeld wrote: ↑ Have any steps been taken to prevent this from happening again?

C

Now that she's on monthly injections she's much calmer (easier to deal with), i've taken over looking after her finances.

signature removed for rule violations - no referrals allowed

Nov 4th, 2020 1:04 pm

CNeufeld: Deal Guru; Mar 23, 2008; 12331 posts; 8748 upvotes; Edmonton

Nov 4th, 2020 1:04 pm

Wilmega wrote: ↑ Now that she's on monthly injections she's much calmer (easier to deal with), i've taken over looking after her finances.

I hope you get the resolution you're looking for. Perhaps try to talk to some of the mental health associations and see if they can refer you to a lawyer who is specifically familiar with advocating for the rights of people with mental health issues.

C

+1

Nov 6th, 2020 2:53 am

TheDogAteMyName: Sr. Member; Jun 29, 2012; 662 posts; 171 upvotes; Vancouver

Nov 6th, 2020 2:53 am

I don't have an answer to your question but if she's on disability she is judgement proof.

Nov 6th, 2020 10:06 am

Wilmega [OP]: Deal Addict; May 28, 2005; 2241 posts; 220 upvotes

Nov 6th, 2020 10:06 am

My mom never went on ODSP, but she applied and was denied in 2011/2012. Now I realize it's cause they counted her $100k investment as assets cause she was denied based on finances.

signature removed for rule violations - no referrals allowed

Nov 6th, 2020 3:17 pm

TheDogAteMyName: Sr. Member; Jun 29, 2012; 662 posts; 171 upvotes; Vancouver

Nov 6th, 2020 3:17 pm

Wilmega wrote: ↑ My mom never went on ODSP, but she applied and was denied in 2011/2012. Now I realize it's cause they counted her $100k investment as assets cause she was denied based on finances.

Perhaps she should try again? How unfortunate.

Nov 7th, 2020 7:59 am

vkizzle: Deal Expert; Aug 22, 2011; 35645 posts; 21730 upvotes; Center of Universe

Nov 7th, 2020 7:59 am

What kind of loan is it?

Dec 17th, 2020 8:19 am

tony311: Sr. Member; May 29, 2012; 530 posts; 197 upvotes; Southern Ontario

Dec 17th, 2020 8:19 am

any updates OP?
I hope you were able to get things sorted out

Dec 17th, 2020 9:35 pm

IMHIP2: Sr. Member; Jan 14, 2007; 568 posts; 190 upvotes; GTA North

Dec 17th, 2020 9:35 pm

tony311 wrote: ↑ any updates OP?
I hope you were able to get things sorted out

I believe you suggested OBSI (hence the quote) but I think @Wilmega should also be complaining to IIROC ("Investment Industry Regulatory Organization of Canada")

IIROC complaints

If OP's mother made an investment it was more than likely through National Bank Financial Inc. an IIROC member firm as well as an OBSI member. Even if the loan was from National Bank of Canada (the Parent company) the investment advisor would be licensed and IIROC's enforcement department is the one to deal with IA's who don't look out for the clients best interests.

Not sure of a time constraint or if an advisor who took advantage of OP's mom would still be in the business but if they are you can find out. Investment advice that does not meet an investors knowledge level and risk tolerance is a major enforcement item the regulators go after and I don't know if there is a limit on this

Good Luck

+1

Dec 17th, 2020 9:45 pm

Thalo: Deal Fanatic; Jul 1, 2007; 8492 posts; 1616 upvotes

Dec 17th, 2020 9:45 pm

Investors Group or World Financial Group?

I wish people would stop falling for that crap.

Money Smarts Blog wrote: ↑I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.

Dec 18th, 2020 11:29 am

Wilmega [OP]: Deal Addict; May 28, 2005; 2241 posts; 220 upvotes

Dec 18th, 2020 11:29 am

tony311 wrote: ↑ any updates OP?
I hope you were able to get things sorted out

I initially connected with OBSI but they referred me to OmbudService for Life & Health Insurance (OLHI) cause my complaint is with the the Advisor who works for Great West Life. OLHI directed me to file a complaint first with Canada Life which I did a few weeks ago. I'm in the final stages and waiting to hear back.

signature removed for rule violations - no referrals allowed

Dec 18th, 2020 11:40 am

Wilmega [OP]: Deal Addict; May 28, 2005; 2241 posts; 220 upvotes

Dec 18th, 2020 11:40 am

IMHIP2 wrote: ↑ I believe you suggested OBSI (hence the quote) but I think @Wilmega should also be complaining to IIROC ("Investment Industry Regulatory Organization of Canada")

IIROC complaints

If OP's mother made an investment it was more than likely through National Bank Financial Inc. an IIROC member firm as well as an OBSI member. Even if the loan was from National Bank of Canada (the Parent company) the investment advisor would be licensed and IIROC's enforcement department is the one to deal with IA's who don't look out for the clients best interests.

Not sure of a time constraint or if an advisor who took advantage of OP's mom would still be in the business but if they are you can find out. Investment advice that does not meet an investors knowledge level and risk tolerance is a major enforcement item the regulators go after and I don't know if there is a limit on this

Good Luck

That's a really good point I couldn't have said it better myself. The advisor is still in business and at the same office as well.

signature removed for rule violations - no referrals allowed

Dec 18th, 2020 11:43 am

Wilmega [OP]: Deal Addict; May 28, 2005; 2241 posts; 220 upvotes

Dec 18th, 2020 11:43 am

Thalo wrote: ↑ Investors Group or World Financial Group?

I wish people would stop falling for that crap.

It was Freedom 55 Financial (owned by Great West Life)

signature removed for rule violations - no referrals allowed

Dec 18th, 2020 10:28 pm

Thalo: Deal Fanatic; Jul 1, 2007; 8492 posts; 1616 upvotes

Dec 18th, 2020 10:28 pm

Ah them too.

Always the top salespeople at each company doing the loans to effectively sell more investments to those who don't have enough money.

Money Smarts Blog wrote: ↑I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.

+1

Jan 28th, 2021 1:14 pm

Wilmega [OP]: Deal Addict; May 28, 2005; 2241 posts; 220 upvotes

Jan 28th, 2021 1:14 pm

Update

Not surprisingly they denied my request. Stating my mom filled out their questionnaire indicating she had vast knowledge of financial markets and products. Also that she stated verbally had the income required to get approved for the loan.

I filed a second appeal, then will wait for a final decision from the provided before moving on to OHLI. They did not confirm my moms income with bank statements, tax returns, t4 slips. So you can be broke and basically tell their financial advisors you have a million dollars and they sell you any of their financial products.

signature removed for rule violations - no referrals allowed

Reply to Thread

Top