BMO fined $4M by consumer watchdog for overcharging customers on discounted plans
CBC
The Financial Consumer Agency of Canada (FCAC) says it has applied a $4-million penalty on Bank of Montreal for overcharging customers after it failed to properly disclose fee details.
The watchdog, which is tasked with protecting users of financial products, says the violations relate to charging clients monthly plan fees that should have been waived or discounted.
The agency says 101,091 customers were affected between 2010 and 2024 and that the bank has issued refunds totalling more than $3 million. The bank has donated a further $600,000 for amounts that couldn't be refunded.
A BMO spokesperson says the bank holds itself to the highest standards of conduct, that it proactively reimbursed its customers and reported the issue to the FCAC.
The penalties relate to discounted bank accounts for newcomers, medical and dental students, Indigenous banking clients and participants of a home financing promotion who the FCAC says were given incorrect information.
It says the $4-million penalty reflects the degree of BMO's negligence in preventing and detecting the error, despite receiving more than 500 customer complaints about the monthly plan fees charged.
