Bank of Montreal Fined $4M for Overcharging Discount Plan Customers
The Financial Consumer Agency of Canada has imposed a $4 million penalty on the Bank of Montreal for overcharging its customers. This fine stems from the bank’s failure to properly disclose fee details associated with various discount plans.
Key Facts about the Bank of Montreal Penalty
- Amount of Penalty: $4 million
- Affected Customers: 101,091
- Refunds Issued: Over $3 million
- Additional Donations: $600,000 for unrefunded amounts
- Time Frame: 2010 to 2024
The Financial Consumer Agency noted that the violations involved charging monthly plan fees that should have been waived or discounted. The affected customers included newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion.
Negligence and Customer Response
The agency stated that the $4 million penalty reflects the extent of the bank’s negligence in both preventing and detecting the error. Despite receiving more than 500 complaints about these fees, the issues persisted.
A spokesperson for the Bank of Montreal emphasized that the institution holds itself to high standards. They acknowledged the proactive steps taken to reimburse customers and confirmed that the issue was reported to the Financial Consumer Agency.
This action reflects a broader commitment to consumer protection in Canada’s banking sector and highlights the importance of transparency in financial services.
