The Bank of Montreal (BMO) has been fined $4 million by the Financial Consumer Agency of Canada (FCAC) for failing to properly disclose fee details, resulting in overcharging customers. The FCAC, responsible for safeguarding financial product users, found that the bank charged clients monthly plan fees that should have been waived or discounted.
Approximately 101,091 customers were impacted between 2010 and 2024. BMO has already refunded over $3 million to affected customers and donated an additional $600,000 for unrefundable amounts. A BMO spokesperson emphasized the bank’s commitment to high ethical standards, noting that they proactively refunded customers and reported the issue to the FCAC.
The penalties are linked to discounted bank accounts for specific 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 about the incorrect monthly plan fees.