BMO Faces $4‑Million Penalty for Long‑Running Customer Overcharges
The Bank of Montreal has been fined $4 million by Canada’s federal banking regulator after an internal review revealed the bank had overcharged more than 100,000 customers enrolled in discounted banking plans. The issue spanned over a decade and affected clients who were supposed to receive reduced or waived fees through specialized programs. According to the regulator, the bank failed to apply fee waivers correctly and did not clearly disclose when discounted pricing would begin. As a result, customers in programs for newcomers, students in medical and dental fields, Indigenous clients, and mortgage‑related plans were charged fees they should not have paid. BMO has refunded millions to affected customers and made additional donations in cases where refunds were not possible. The bank stated that it self‑reported the issue and has since updated its internal processes to prevent similar errors. The fine highlights the ongoing scrutiny of consumer protection practices within Canada...
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