The Financial Consumer Agency of Canada (FCAC) has imposed a $4 million fine on Bank of Montreal for failing to adequately disclose fee information and subsequently overcharging customers. The regulatory body, responsible for safeguarding consumers of financial services, found that the bank unlawfully billed clients monthly plan fees that should have been waived or discounted.
According to FCAC, a total of 101,091 customers were impacted between 2010 and 2024. Bank of Montreal has refunded over $3 million to affected individuals and contributed an additional $600,000 for cases where refunds were not feasible.
A representative from BMO emphasized the institution’s commitment to upholding high ethical standards, highlighting that they promptly reimbursed customers and promptly informed FCAC about the issue.
The penalties pertain to discounted bank account offers for specific groups, including newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion. FCAC determined that these customer segments received inaccurate information.
FCAC justified the $4 million fine as a reflection of BMO’s failure to prevent and detect the error, despite receiving over 500 complaints from customers regarding the improper monthly plan fees charged.