The Financial Consumer Agency of Canada has fined the Bank of Montreal $4 million after finding the bank overcharged customers on discounted banking plans over a period spanning more than a decade.
The federal watchdog said the violations relate to Bank of Montreal charging monthly account fees that should have been waived or reduced.
According to the agency, 101,091 customers were affected between 2010 and 2024.
The Financial Consumer Agency of Canada said the bank has already refunded more than $3million to customers who were wrongly charged.
An additional $600,000 was donated by the bank for cases where refunds could not be issued.
A spokesperson for the Bank of Montreal said the bank holds itself to high standards of conduct, proactively reimbursed customers, and reported the issue to the regulator.
The FCAC said the problem involved several discounted account programs, including plans for newcomers to Canada, medical and dental students, Indigenous banking clients, and participants in a home financing promotion.
Customers in these groups were given incorrect information about whether their monthly fees would be waived or reduced.
The agency said the $4million penalty reflects the degree of negligence by the bank in preventing and detecting the issue.
It noted that more than 500 customer complaints were received about the fees before the problem was fully addressed.
The Financial Consumer Agency of Canada is responsible for supervising federally regulated financial institutions and enforcing consumer protection rules.
It said the enforcement action is meant to ensure banks clearly disclose fees and treat customers fairly.