Consumer Protection BC has issued administrative penalties against Bank of Montreal for:
- Failing to comply with an Undertaking that required the business to submit a report of mortgage discharges for the quarterly period of November 1, 2023 to January 31, 2024 within 45 days of the end of that quarter, contrary to section 189(5)(c)(i) of the Business Practices and Consumer Protection Act(BPCPA), an administrative penalty of $9,000
- Failing to comply with an Undertaking that required the business to submit a report of mortgage discharges for the quarterly period of February 1, 2024 to April 30, 2024 within 45 days of the end of that quarter, contrary to section 189(5)(c)(i) of the Business Practices and Consumer Protection Act(BPCPA), an administrative penalty of $8,000
The business has also been issued a compliance order requiring they reimburse Consumer Protection BC’s inspection and legal costs in the amount of $5,245 within 30 days.
Work done by Consumer Protection BC in 2023 and 2024 showed broad non-compliance in the financial sector in providing consumers with a discharge document within 30 days of a mortgage loan being paid in full. To bring the sector into compliance, Consumer Protection BC signed a series of Undertakings with several financial institutions to change their business practices.
Read the compliance order, administrative penalty and the full reasons for the decision.
By law, the business has 30 days to request a reconsideration of the decision.
All money received from administrative penalties is deposited into the Consumer Advancement Fund (as required by section 169 of the Business Practices and Consumer Protection Act).
About Consumer Protection BC
Consumer Protection BC is a not-for-profit regulator responsible for overseeing certain industries and specific consumer transactions in the province. Their mandate is to license and inspect their regulated businesses, respond to consumer inquiries, investigate alleged violations of consumer protection laws, and classify all general release motion pictures.
For more information about Consumer Protection BC, to read their recent enforcement actions, and to learn about their inspection and complaint-handling processes, please visit their website at www.consumerprotectionbc.ca. You can also follow them on Facebook, Instagram and YouTube or read their blog for valuable consumer tips and resources.