The Financial Consumer Agency of Canada (FCAC) has imposed a $4 million fine on the Bank of Montreal for failing to disclose fee details and overcharging customers. The FCAC, responsible for safeguarding financial product users, found that the bank was charging clients monthly plan fees that should have been waived or discounted.
Between 2010 and 2024, a total of 101,091 customers were impacted by the violations. In response, the Bank of Montreal has refunded over $3 million to affected customers and donated an additional $600,000 for unrecoverable amounts.
A spokesperson for BMO stated that the bank upholds the highest standards of conduct, promptly reimbursed customers, and promptly reported the issue to the FCAC. The penalties 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, who received incorrect information according to the FCAC.
The $4 million penalty imposed on BMO reflects the level of negligence in preventing and identifying the error, despite receiving over 500 customer complaints regarding the charged monthly plan fees.