BMO fined $4-million for overcharging customers on discounted plans

The Financial Consumer Agency of Canada fined the Bank of Montreal $4 million after finding it charged monthly plan fees that should have been waived or discounted; about 101,091 customers were affected and BMO issued over $3 million in refunds and donated $600,000.

The Financial Consumer Agency of Canada has imposed a $4-million penalty on the Bank of Montreal after finding the bank charged monthly plan fees that should have been waived or discounted. The agency said the violations involved failures to properly disclose fee details and affected discounted accounts for newcomers, medical and dental students, Indigenous clients and participants in a home financing promotion. FCAC reported about 101,091 customers were affected between 2010 and 2024. BMO has reimbursed customers, issuing more than $3 million in refunds and donating $600,000 for amounts that could not be returned. What the regulator reported: - FCAC applied a $4-million administrative penalty for improper disclosure and charging of monthly plan fees. - About 101,091 customers were reported affected during the 2010–2024 period. - BMO issued refunds totaling over $3 million and donated $600,000 for unrefundable amounts. - The agency noted the penalty reflected shortcomings in preventing and detecting the error despite more than 500 customer complaints. Summary: The penalty confirms the regulator found failures in how fee details were disclosed and billed, and BMO has taken steps to reimburse affected customers. Undetermined at this time.