Wednesday, August 5, 2009

Bank of Montreal Mortgage Fee Refunds

The Bank of Montreal has begun advertising for former mortgage holders to contact them about possible refund of fees paid (see the announcement here).

Back in June Bank of Montreal announced that they had overcharged “penalties on certain mortgage pre-payment and early-renewal transactions” and would be refunding approximately $7.1 million to 28,000 customers.

It is not clear whether the latest announcement is part of the same refunding effort, or whether this is a new set of customers who were overcharged. The announcement says

“You may be eligible for a refund if between:
- September 1, 1998 and July 10, 2005 you paid out your mortgage.
- February 1, 2001 and August 31, 2005 you renewed or early renewed into a 6-Year Flexible Below Prime mortgage.
- May 1, 2002 and September 30, 2006 you renewed into a fixed rate closed mortgage and paid a penalty on this mortgage as a result of a subsequent early renewal or prepayment.
- October 1, 2004 and September 30, 2006 you obtained a new fixed rate closed mortgage and paid a penalty on this mortgage as a result of a subsequent early renewal or prepayment.”

I called about a variable rate mortgage that I paid off in 1999 and was told that I was not overcharged. It appears that the rebate is related to fixed mortgages that were paid off early, although the announcement doesn’t make this entirely clear. To be sure, follow the instructions in the announcement for contacting the Bank of Montreal.

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