The Financial Consumer Agency of Canada (FCAC) has imposed a $4 million fine on Bank of Montreal for improperly disclosing fee information, resulting in overcharging customers. The violations mainly involve imposing monthly plan fees on clients that should have been waived or reduced.
According to the watchdog, a total of 101,091 customers were impacted between 2010 and 2024. Bank of Montreal has refunded over $3 million to affected customers and donated an additional $600,000 for unrecoverable amounts.
A representative from BMO emphasized the bank’s commitment to high standards of conduct. They mentioned that the bank proactively reimbursed affected customers and promptly notified the FCAC of the issue.
The penalties are related to discounted bank account offerings for specific customer groups, including newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion. The FCAC highlighted that incorrect information was provided to these customers.
The $4 million penalty imposed on BMO reflects the severity of the bank’s oversight in preventing and identifying the error, despite receiving over 500 customer complaints regarding the erroneously charged monthly plan fees.