Federal regulators yesterday fined an Ontario trust company $1.6 million for failing to plainly disclose a $100 statement fee it charged mortgage customers. The penalty was five times the amount collected in fees.

“Accurate disclosure of fees and costs is fundamental to fairness, honest business practices and the integrity of the financial system,” wrote Judith Robertson, Commissioner of the Financial Consumer Agency of Canada. “It serves the dual purpose of allowing customers to make informed financial decisions and provides them with the ability to hold their lenders to account in the event fees are charged inappropriately.”

Evidence showed Community Trust Company of Mississauga, Ont. failed to disclose its $100 statement fee over a ten-year period. A single customer complaint in 2021 prompted the federal investigation.

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