"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."
"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."
The Financial Consumer Agency of Canada applied a $4-million penalty to Bank of Montreal for failing to properly disclose fee details and overcharging customers. The violations involved charging monthly plan fees that should have been waived or discounted for accounts intended for newcomers, medical and dental students, Indigenous banking clients and participants in a home financing promotion. Between 2010 and 2024, 101,091 customers were affected; BMO issued refunds totaling more than $3 million and donated $600,000 for amounts that could not be refunded. BMO said it reimbursed customers proactively and reported the issue to the FCAC. The penalty reflected negligence given more than 500 customer complaints and failures to prevent and detect the error.
Read at www.cbc.ca
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