The Financial Consumer Agency of Canada (FCAC) has imposed a fine of $4 million on Bank of Montreal for improperly charging customers due to undisclosed fee information. The regulatory body responsible for safeguarding financial product users found that the bank had been billing clients monthly plan fees that should have been waived or discounted.
According to the FCAC, a total of 101,091 customers were impacted between 2010 and 2024. Bank of Montreal has already refunded over $3 million to affected customers and contributed an additional $600,000 for unrefundable amounts.
A spokesperson from BMO emphasized the bank’s commitment to upholding the highest standards of behavior. They mentioned that the bank voluntarily reimbursed customers and promptly reported the issue to the FCAC.
The penalties revolve around discounted bank accounts for specific customer groups, including newcomers, medical and dental students, Indigenous banking clients, and individuals participating in a home financing promotion. The FCAC highlighted that these groups were provided with inaccurate information.
The $4 million penalty reflects the extent of BMO’s failure to prevent and identify the error, despite receiving over 500 customer complaints regarding the erroneously charged monthly plan fees.
