More than 101,000 Canadians were found to be overcharged by Bank of Montreal (BMO) after being charged for a discounted product. The product was marketed specifically to newcomers, students, and Indigenous clients, who were incorrectly charged fees for monthly plans that should have been waived or discounted.
The $4 million fine was imposed by the Financial Consumer Agency of Canada (FCAC), which is the federal body responsible for regulating the financial market to protect consumers. The bank took responsibility for the billing errors that resulted in the overcharges, though the issue spanned more than a decade and garnered over 500 consumer complaints before being resolved.
In 2010, BMO launched discounted banking programs geared toward newcomers to Canada, medical and dental students, Indigenous banking clients, and participants in a home financing promotion who at the time received written confirmation of the fee waivers, but the document listed an incorrect start date which led to repeated clerical errors and overcharges.
The incorrect disclosure was compounded between 2022 and 2024 when the bank once again failed to clearly communicate when fees would commence. FCAC also notes that BMO employees did not consistently apply the correct procedures, issues that were missed by its internal controls.
In accordance with the Bank Act, federally regulated banks are required to clearly disclose all fees in advance of charging them. Even after repeated complaints, the matter persisted. This negligence in failing to prevent and detect the problem is grounds for the multi-million dollar fine.
BMO spokesperson Jeff Roman said the bank proactively reimbursed customers and self-reported the matter to the FCAC. Refunds and interest totalled more than $3 million and where funds could not be returned directly to accounts or accountholders, the bank made a charitable contribution of more than $600,000.
If you were in one of the affected groups and have not received a refund or any communication from BMO, here’s what to do:
Review your statements from the time you enrolled; if you were charged a monthly plan fee on an account that should have been discounted or free, document it and contact BMO directly and reference FCAC Summary of Proceeding #4, published February 2, 2026 and ask whether your account was part of an affected program and confirm whether a refund was issued.
If a refund was not applied to your account and BMO indicates a charitable donation was made in lieu, ask for a full accounting of what amount was calculated for your account. If BMO does not respond or resolve your concern, file a complaint with the FCAC at canada.ca/en/financial-consumer-agency
