BMO fined $4 million by consumer watchdog for overcharging customers on discounted plans
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The Financial Consumer Agency of Canada (FCAC) says it has fined the Bank of Montreal $4 million for overcharging customers after failing to properly disclose fee details.
The watchdog, which is tasked with protecting users of financial products, says the violations relate to charging customers monthly plan fees that should have been waived or waived.
The agency says 101,091 customers were affected between 2010 and 2024 and the bank has issued refunds totaling more than $3 million. The bank donated an additional $600,000 to make up for the amounts that could not be returned.
A spokesperson for BMO says the bank holds itself to the highest standards of conduct, it proactively reimbursed its customers and reported the issue to the FCAC.
The fines relate to concessional bank accounts for newcomers, medical and dental students, Indigenous banking customers and participants of home financing promotions who the FCAC says were given false information.
It said the $4 million fine reflects the degree of negligence on BMO’s part in preventing and detecting the error, despite receiving more than 500 customer complaints about monthly plan fees.
