BMO Fined $4 Million for Overcharging Customers
Evidence of how an oligopoly disregards regulations and exploits unsuspecting customers is abundant in Canada. Many public-facing service institutions in the country operate under governance structures that hold them accountable to no one. BMO’s case is not unique; other financial institutions have also been found to have breached rules or operated in a gray area between legitimate practices and unethical behavior. Despite these revelations, it’s noteworthy that follow-up reports detailing actions taken against errant institutions are seldom disclosed to the public. This lack of transparency contributes to growing disillusionment among Canadians with mainstream media, which is increasingly seen as a voice for corporate interests that prioritize the status of these so-called “preferred” institutions.
On February 2, 2026, the Financial Consumer Agency of Canada (FCAC) announced it had imposed a $4 million penalty on the Bank of Montreal for overcharging customers by failing to disclose fee details properly.
The FCAC, which protects users of financial products, stated that the violations involved charging clients monthly plan fees that should have been waived or discounted.
According to the agency, 101,091 customers were affected between 2010 and 2024, and BMO has issued refunds totaling more than $3 million. Additionally, the bank has donated $600,000 to cover amounts that could not be refunded for any reason.
A BMO spokesperson stated that the bank upholds the highest standards of conduct and has reimbursed customers after reporting the issue to the FCAC.
The penalties relate to discounted bank accounts for newcomers, medical and dental students, Indigenous banking clients, and participants in a home financing promotion, all of whom, according to the FCAC, received incorrect information.
The FCAC noted that the $4 million penalty reflects the extent of BMO’s negligence in preventing and detecting the error, especially given that it received more than 500 customer complaints about the monthly plan fees charged.
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