BMO fined $4 million after customers were overcharged on discounted accounts
The Financial Consumer Agency of Canada fined BMO $4 million after finding 101,091 customers were charged monthly plan fees that should have been waived or discounted between 2010 and 2024.
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By Torontoer Staff
The Financial Consumer Agency of Canada has fined the Bank of Montreal $4 million for charging monthly plan fees that should have been waived or discounted. The agency says 101,091 customers were affected over a 14-year period, from 2010 to 2024.
BMO has issued refunds totalling more than $3 million and has donated $600,000 to cover amounts that could not be returned. The FCAC says the penalty reflects the bank’s failure to properly disclose fee details and to prevent or detect the problem despite receiving over 500 customer complaints about the charges.
What the FCAC found
The FCAC’s investigation focused on discounted bank account plans where monthly fees should have been waived or reduced. Regulators found that BMO provided incorrect information about those discounts, and allowed the fees to be charged to customers who qualified for reduced or no-fee plans.
The affected account categories included newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion. The agency characterised the issue as a disclosure and systems failure that resulted in widespread incorrect billing.
Bank response and consumer redress
BMO says it reported the problem to the FCAC and proactively reimbursed customers. The bank issued refunds of more than $3 million and provided an additional $600,000 where refunds could not be processed, according to the regulator.
BMO holds itself to the highest standards of conduct. We proactively reimbursed our customers and reported the issue to the Financial Consumer Agency of Canada.
BMO spokesperson
The FCAC imposed the $4-million administrative monetary penalty to reflect the seriousness of the disclosure and control shortcomings, and the volume of affected customers. The regulator noted that more than 500 complaints about the monthly plan fees had been logged before the issue was addressed.
What this means for customers
If you banked with BMO in the affected categories between 2010 and 2024, review your account statements for unexplained monthly plan fees. The bank has already paid refunds to identified customers, but if you believe you were missed, contact BMO’s customer service.
- Check account statements and emails for notices about discounted plans and any fee reversals.
- Contact BMO customer support and ask for an account review if you believe you were charged in error.
- If you do not get a satisfactory response, escalate through the bank’s complaint process and consider contacting an external dispute-resolution service such as the Ombudsman for Banking Services and Investments.
- Keep records of communications and dates of fees when making a complaint.
Broader context for fee transparency
This enforcement action highlights the importance of clear fee disclosure from financial institutions. Regulators in Canada have been focused on consumer protections around fees and account transparency, and this case shows consequences for systems and disclosure failures that lead to overbilling.
For consumers, it reinforces the need to review account agreements and regular statements, and to raise concerns promptly when fees do not match the terms you were promised.
The FCAC’s administrative penalty does not replace individual compensation where eligible. Customers who think they were affected and have not been reimbursed should start with the bank and, if needed, pursue external dispute options.
Regulatory decisions like this one serve as a reminder that fee transparency matters for everyday banking, and that customers have avenues to seek corrections when banks fall short.
Bank of Montrealpersonal financeFCACbank feesconsumer protection
