The Financial Consumer Agency of Canada (FCAC) has imposed a $4 million fine on Bank of Montreal for improperly charging customers due to inadequate disclosure of fee information. The FCAC, 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 between 2010 and 2024. Bank of Montreal has refunded over $3 million to affected customers and contributed an additional $600,000 for unrecoverable amounts.
A spokesperson from BMO emphasized the bank’s commitment to upholding high ethical standards, highlighting that they took proactive measures to refund customers and promptly reported the issue to the FCAC.
The penalties stem from discrepancies in discounted bank accounts offered to specific groups such as newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion. The FCAC noted that incorrect information was provided to these groups.
The $4 million penalty imposed on BMO reflects the extent of negligence in preventing and identifying the error, despite receiving over 500 customer complaints regarding the monthly plan fees charged.