Rajesh, a client, files a formal complaint with his mortgage brokerage in Calgary, alleging that the mortgage agent did not accurately disclose the total cost of borrowing for a private mortgage. What is a key step the Principal Broker must undertake as part of their complaints handling process?

Question: Rajesh, a client, files a formal complaint with his mortgage brokerage in Calgary, alleging that the mortgage agent did not accurately disclose the total cost of borrowing for a private mortgage. What is a key step the Principal Broker must undertake as part of their complaints handling process?

Answer options: ✅ Acknowledge receipt of the complaint in writing within a reasonable timeframe and initiate an investigation into the allegations.

• Refer Rajesh directly to RECA, as the brokerage is not equipped to handle such disputes.
• Immediately dismiss the complaint if the agent claims their disclosure was adequate.
• Offer Rajesh a financial settlement to avoid escalating the complaint, without a full investigation.

Correct answer: Acknowledge receipt of the complaint in writing within a reasonable timeframe and initiate an investigation into the allegations.

Explanation: Effective complaints handling, as generally prescribed by regulatory bodies like RECA in Alberta, requires prompt acknowledgement of complaints in writing, followed by a thorough and impartial investigation into the matter, and a substantive response to the complainant.