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Royal Bank of Canada ordered to pay $4.25M penalty for consumer violation
The bank transferred and refunded $22.4 million to affected customers after FCAC said weak controls led to inaccurate monthly statements.
- On Thursday, the Financial Consumer Agency of Canada fined the Royal Bank of Canada $4.25 million for providing inaccurate credit card statements to customers, citing violations of the Bank Act.
- The bank failed to transfer credits during account migration after fraud reports, which the FCAC said resulted in inaccurate statements and additional charges for some customers.
- Reporting errors impacted 227,947 accounts, prompting the bank to refund about $22.4 million to customers and donate $299,000 on behalf of those who could not be located.
- RBC spokesperson Nathaniel Wallace stated the lender takes its regulatory obligations seriously and that the bank self-reported the matter and fully co-operated with the regulator throughout the process.
- The FCAC identified the root cause as "inadequate and ineffective control and oversight procedures," a pattern echoed in a $4 million fine applied to BMO in February for Bank Act violations.
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Regulator Imposes $4.25M Penalty on RBC for Inaccurate Credit Card Claims
The Royal Bank of Canada (RBC) has been fined $4.25 million by a government regulator for issuing monthly credit card statements to certain customers that included incorrect information. The violation relates to RBC’s procedure for deactivating and transferring customers’ credit card accounts to new accounts following reports of fraud for the 23 years between 2001 and 2024, the Financial Consumer Agency of Canada (FCAC) said in a summary of proc…
·New York, United States
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The Financial Consumer Agency of Canada (FCAC) reports that Royal Bank of Canada (RBC) was fined more than $4 million for providing incorrect credit card statements to some customers.
·Montreal, Canada
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Total News Sources15
Leaning Left5Leaning Right4Center4Last UpdatedBias Distribution38% Left
Bias Distribution
- 38% of the sources lean Left
38% Left
L 38%
C 31%
R 31%
Factuality
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