The Financial Consumer Agency of Canada (FCAC) has imposed a $4 million fine on Bank of Montreal for improperly charging customers due to undisclosed fee information. The regulatory body, responsible for safeguarding consumers of financial services, found that the bank had been billing clients monthly plan fees that were supposed to be waived or discounted.
According to FCAC, over 100,000 customers were impacted from 2010 to 2024, and Bank of Montreal has refunded over $3 million to affected individuals. Additionally, the bank has contributed $600,000 for cases where refunds were not feasible.
A representative from BMO emphasized the institution’s commitment to high ethical standards, highlighting that they took proactive measures to reimburse customers and promptly reported the issue to FCAC.
The penalties were linked to discounted bank account offerings for specific groups, including newcomers, medical and dental students, Indigenous banking customers, and participants in a home financing promotion, who were provided with inaccurate details, as per FCAC.
FCAC stated that the $4 million penalty signifies the extent of BMO’s oversight in addressing and identifying the error, despite receiving over 500 complaints from customers about the monthly plan fees they were charged.
