The Financial Consumer Agency of Canada (FCAC) has imposed a $4-million fine on Bank of Montreal for overcharging customers due to inadequate fee disclosure. The FCAC, responsible for safeguarding consumers of financial services, found that the bank had been charging monthly plan fees to clients that should have been waived or discounted.
According to the FCAC, a total of 101,091 customers were impacted between 2010 and 2024. The bank has refunded over $3 million to affected customers and has contributed an additional $600,000 for cases where refunds were not feasible.
A representative from BMO emphasized the bank’s commitment to upholding the highest standards of behavior. They stated that the bank took proactive measures to reimburse customers and promptly reported the issue to the FCAC.
The penalties were imposed in connection with discounted bank account offerings for newcomers, medical and dental students, Indigenous banking customers, and participants in a home financing promotion. The FCAC highlighted that incorrect information was provided to these customer groups.
The $4-million penalty signifies the extent of BMO’s failure to prevent and identify the error, despite receiving over 500 customer complaints regarding the erroneously imposed monthly plan fees.