Gobin Harbhajan instituted legal action against Scotiabank after his account was closed for no stated reason. Although the court did not find there was any legal breach in the account closing process. The trial judge makes important point in the decision - Guyana need a body to mediate issues and disputes between customers and financial institutions.

We want to consider this question today, is there merit to a financial ombudsman office being created in Guyana?

What would a financial ombudsman do specifically? They review disputes that arise between banks and their customers, the issues can range from account issues, transaction issues, card service issues, fee or charge issues, loan or credit issues, privacy issues, or miscellaneous matters and a review of the annual reports of the Financial Ombudsman Office of Trinidad the office’s services are regularly utilized by Trinidadians.

Quite a few countries including Trindad & Tobago also have their financial ombudsman office look into matters between insurance companies and their customers. The complaints can include inadequate insurance offers, undue delay by the insurance companies, denial of claim complaints and miscellaneous complaints. This extends not only to motor insurance but also to Life, Health, Annuities and Property Insurance.

There will always be an imbalance of power between financial institutions and their clients. Many societies have recognized this and have enacted legislation to protect citizens from possible excesses perpetrated by the banks.

Unfortunately, Guyana is not a data driven society, and we must be guided by our own experiences or publicly available information. I don't think it is unreasonable to suggest that Guyana suffers from unfair bargaining power that exists between financial institutions, insurance companies and their customers.

As such the establishment of a Financial Ombudsman office would be a welcomed and long overdue addition to Guyana's legal and business architecture.