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 consumers revealed that the breaches involved the imposition of monthly plan fees on clients that should have been waived or reduced.
According to FCAC, a total of 101,091 customers were impacted between 2010 and 2024, with the bank issuing refunds exceeding $3 million. Bank of Montreal also contributed $600,000 in donations for unrefundable amounts. A spokesperson for BMO emphasized the bank’s commitment to upholding high ethical standards, highlighting that they proactively reimbursed affected customers and promptly reported the issue to FCAC.
The penalties pertain to misinformed practices related to discounted bank accounts offered to newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion. FCAC criticized BMO for its failure to prevent and identify the error, despite the receipt of over 500 customer complaints regarding the incorrectly imposed monthly plan fees.
The $4 million penalty imposed on Bank of Montreal reflects the severity of the negligence displayed by the bank in addressing the issue, as stated by FCAC.
