BMO Fined $4 Million Over Improper Fees Charged to Customers
The Financial Consumer Agency of Canada has fined Bank of Montreal after finding customers were improperly charged fees on discounted banking plans.
By: Ebenezer Adu-Gyamfi / Emmanuel Ayiku for GhanaianNewsCanada 3/2/2026
Canada’s financial consumer watchdog has imposed a $4-million penalty on the Bank of Montreal (BMO) after finding that the bank improperly charged fees to customers who were entitled to discounted or waived banking plans.
The Financial Consumer Agency of Canada (FCAC) said the violations stemmed from BMO’s failure to clearly and accurately disclose fee information to certain customers. As a result, clients were charged monthly account fees that should not have applied under the terms of their banking agreements.
Thousands of Customers Impacted
According to the agency, 101,091 customers were affected by the issue between 2010 and 2024. The overcharges involved a range of discounted account plans, including those offered to newcomers to Canada, Indigenous clients, medical and dental students, as well as customers enrolled in a home financing promotion.
The FCAC said BMO has already refunded more than $3 million to eligible customers. In cases where refunds could not be completed — such as when accounts were closed or customers could not be reached — the bank contributed an additional $600,000 through donations.
Regulator Cites Negligence
In announcing the penalty, the FCAC said the fine reflects the seriousness of the violations and the bank’s failure to detect and correct the issue sooner. The agency noted that BMO received over 500 customer complaints related to the improper fees before corrective action was taken.
The watchdog concluded that the bank did not have adequate controls in place to prevent or quickly identify the errors, leading to prolonged impacts on affected customers.
BMO Responds
In a statement, a spokesperson for BMO said the bank holds itself to high standards of conduct and emphasized that it took steps to address the issue once it was identified. The spokesperson said BMO proactively reimbursed customers and reported the matter to the FCAC.
The bank did not dispute the findings but acknowledged shortcomings in how the discounted plans were administered.
Consumer Protection Role
The FCAC is responsible for supervising federally regulated financial institutions and ensuring they comply with consumer protection laws. It has the authority to issue penalties when institutions fail to meet disclosure, fairness, and transparency requirements.
The agency said the enforcement action is intended to reinforce expectations around clear communication with customers and accountability when errors occur.
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