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 details. The FCAC, responsible for safeguarding users of financial services, found that the bank had been charging clients monthly plan fees that should have been waived or reduced.
Around 101,091 customers were impacted between 2010 and 2024, leading to the bank issuing over $3 million in refunds. Additionally, Bank of Montreal has contributed $600,000 for cases where refunds were not feasible.
A spokesperson from BMO emphasized the bank’s commitment to high ethical standards, highlighting that it promptly reimbursed affected customers and promptly reported the issue to the FCAC.
The penalties were linked to discounted accounts for specific customer groups, including newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion, who were provided with inaccurate information. Despite receiving over 500 customer complaints concerning the erroneous monthly plan fees, the FCAC stated that the $4 million penalty reflects BMO’s failure to prevent and identify the error effectively.