The Bank of Montreal has been fined $4 million by the Financial Consumer Agency of Canada (FCAC) for improperly charging customers due to undisclosed fee information. According to the FCAC, the bank failed to waive or discount monthly plan fees for over 101,000 customers between 2010 and 2024. In response, the bank has refunded over $3 million to affected customers and donated $600,000 for unrecoverable amounts.
A representative from BMO stated that the bank maintains the highest ethical standards, promptly reimbursed customers, and reported the issue to the FCAC. The penalties primarily stem from discrepancies in discounted bank accounts targeting specific groups such as newcomers, medical and dental students, Indigenous banking customers, and participants in a home financing promotion. The FCAC highlighted that the $4 million penalty reflects BMO’s negligence in addressing the issue, despite receiving numerous customer complaints about the erroneous monthly plan fees.
