The Financial Consumer Agency of Canada is launching a review of business practices among financial institutions after reports citing unnamed employees who alleged that the big banks were selling services without the consent of their customers.
Commissioner Lucie Tedesco says she is concerned by the allegations and issued a statement reminding the lenders of their obligations to obtain prior consent before increasing credit limits and providing clients with new products.
The review comes after CBC reported that some employees from Canada's five biggest banks alleged that they felt pressured to upsell, trick and even lie to customers to meet sales targets that were unrealistic. TD, the focus of early stories about the issue, has said it doesn't believe the reports accurately reflect the bank's workplace.
CBC reported that the banks said they act in the best interest of their clients and that employees are expected to follow codes of conduct.
The review is set to begin next month.
Are sales targets damaging client-advisor relationships?
TD hits back over reports that employees broke the law