TD Bank allegations raise ‘serious concerns,’ ombud says

TORONTO — The head of Canada’s main financial services ombud says allegations about aggressive sales tactics by TD Bank employees raise “serious concerns,” and the watchdog will be monitoring consumer complaints for similar issues in the broader industry.

Sarah Bradley, the head of the Ombudsman for Banking Services and Investments, is urging consumers who encounter issues such as fees stemming from unauthorized accounts to file a complaint with their financial institution.

Bradley’s comments came in the wake of several CBC reports that current and former employees at TD alleged they broke the law to meet sales targets in order to stay employed.

The Ombudsman for Banking Services and Investments is an impartial arbitrator that serves as an alternative to expensive legal battles by resolving disputes between banks or investment firms and their clients.

TD Bank ditched the organization in 2011 in favour of another arbitrator called ADR Chambers Banking Ombuds Office, following in the footsteps of Royal Bank, who did so several years earlier.

In a statement late Sunday, TD Bank chief executive officer Bharat Masrani said he doesn’t believe the reports are an accurate portrayal of the bank’s workplace, but he said he takes the concerns the story raises seriously.

“TD is in the trust business,” Masrani said in the statement. “We know we must earn our customers’ trust before we earn their business.”

The statement said that “we have a balanced approach in how we evaluate and compensate our people based on a variety of factors, including customer experience, team and individual sales, and how well they demonstrate our company values. While we have sales goals to help manage our business, we know that we will only succeed by doing the right thing for our customers.”

On Friday, shares of TD lost more than five per cent following the CBC report.

The shares gained back some of the loss on Monday. The bank’s stock gained 96 cents or 1.45 per cent to close at $66.96 on the Toronto Stock Exchange.