Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeFinanceBankingRBC fined $4.25 million for making inaccurate credit card claimsA total of 227,947 accounts were impactedLast updated 34 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Royal Bank of Canada headquarters in the financial district of Toronto, Ont. Photo by Cole Burston/Bloomberg filesRoyal Bank of Canada was fined $4.25 million by the Financial Consumer Agency of Canada (FCAC) for providing some customers monthly credit card statements that contained inaccurate information.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe violations, which took place from 2021 to 2024, were related to the way RBC deactivated a customer’s credit card account and then migrated those details to a new credit card after fraud was reported, the government agency said in a statement on Thursday.It said RBC failed to transfer certain credits from the deactivated accounts to the new ones, which led to customers receiving inaccurate credit card statements. Some customers also incurred additional charges.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“Accurate disclosure is a foundational element of the consumer protection provisions of the Bank Act,” the agency said. “For consumers to make informed financial decisions, they must be provided information that is accurate.”A total of 227,947 accounts were impacted. RBC transferred and refunded about $22.4 million to affected customers and donated $299,000 on behalf of those customers who could not be located.“The root cause of the violation was inadequate and ineffective control and oversight procedures and operational challenges with processes and proper reporting,” the FCAC said in a separate document that summarized the case against RBC.The $4.25-million penalty reflects the significant harm done to customers, among other things, it said. RBC paid the penalty on April 17 after the agency issued a notice of violation on March 18.A spokesperson for RBC said the bank self-reported this matter to the FCAC and fully cooperated with it throughout the process.“Where areas for improvement are identified, we act to address them,” he said in an email.This was the second penalty the agency announced against a big bank this year.In February, the agency said it applied a $4-million penalty on Bank of Montreal for violations of consumer provisions in the Bank Act.The violations were related to erroneous charges for monthly plan fees that should have been waived or discounted for certain personal deposit accounts, the agency said in a statement in February.“From 2010 to 2024, BMO failed to disclose all charges applicable to these accounts,” it said.A total of 101,091 customers were financially impacted in the BMO case. The bank issued more than $3 million in refunds and redressed interest to impacted customers. It also made a donation of more than $600,000 on behalf of affected customers who could not be found. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.