The Financial Consumer Agency of Canada (FCAC) has imposed a $4 million fine on Bank of Montreal for overcharging customers due to inadequate disclosure of fee information. The regulatory body, responsible for safeguarding financial product users, found that the bank had been billing clients monthly plan fees that were supposed to be waived or discounted.
According to the FCAC, a total of 101,091 customers were impacted from 2010 to 2024, with the bank issuing refunds exceeding $3 million. Additionally, Bank of Montreal has made a $600,000 donation for unrefundable amounts.
In response, a spokesperson from BMO emphasized the bank’s commitment to upholding high ethical standards. They mentioned that the bank took proactive measures to reimburse affected customers and promptly notified the FCAC about the issue.
The penalties were linked to discrepancies in discounted bank account offerings for specific groups, including newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion. The FCAC highlighted that these customers were provided with inaccurate information.
The $4 million penalty imposed on BMO reflects the severity of the bank’s failure to prevent and address the error, despite receiving over 500 customer complaints regarding the improperly charged monthly plan fees.