The Financial Consumer Agency of Canada (FCAC) has imposed a $4 million fine on Bank of Montreal for improperly charging customers due to inadequate fee disclosures. According to the watchdog, the bank was found to have billed clients monthly plan fees that were supposed to be waived or discounted.
Around 101,091 customers were impacted between 2010 and 2024, with the bank having refunded over $3 million to affected individuals. An additional $600,000 has been donated by the bank for cases where refunds could not be issued.
A spokesperson from BMO emphasized the institution’s commitment to upholding the highest ethical standards. They stated that the bank took proactive measures to reimburse customers and promptly informed the FCAC about the issue.
The penalties specifically pertain to discounted bank accounts for various customer segments, including newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion. The FCAC highlighted instances where these groups were provided with incorrect information.
The $4 million fine reflects the FCAC’s assessment of BMO’s failure to prevent and identify the error, despite receiving over 500 customer complaints regarding the erroneous monthly plan fees.