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 regulatory body, responsible for safeguarding financial product consumers, found that the bank had been billing customers monthly plan fees that should have been waived or discounted.
A total of 101,091 customers were impacted between 2010 and 2024, with the bank issuing refunds exceeding $3 million. Bank of Montreal also made a charitable donation of $600,000 for unrecoverable amounts. A representative from BMO emphasized the bank’s commitment to upholding high ethical standards, highlighting proactive reimbursements to affected customers and prompt reporting to the FCAC.
The penalties stem from discrepancies in discounted accounts for specific customer segments, including newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion. The FCAC noted that these groups were provided with inaccurate information.
The $4 million fine levied on BMO reflects the extent of the bank’s oversight failure in identifying and rectifying the issue, despite receiving over 500 customer complaints regarding the erroneously charged monthly plan fees.