The Financial Consumer Agency of Canada (FCAC) imposed a $4 million fine on the Bank of Montreal for overcharging customers due to inadequate disclosure of fee information. The violations pertain to charging monthly plan fees to clients that should have been waived or discounted. Over 100,000 customers were impacted between 2010 and 2024, with the bank refunding over $3 million and donating an additional $600,000 for unrecoverable amounts.
A representative from BMO emphasized the bank’s commitment to high ethical standards, stating that they proactively reimbursed customers and promptly reported the issue to the FCAC. The penalties are linked to misinformed practices regarding discounted accounts for specific customer segments, including newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion.
The $4 million penalty reflects the FCAC’s assessment of BMO’s failure to prevent and detect the error, despite receiving numerous customer complaints about the incorrect monthly plan fees.