Bill Knight, Commissioner of the Financial Consumer Agency of Canada (FCAC), today announced that two firms have been found in violation of federal legislation that protects financial consumers. The Commissioner imposed fines totalling $80,000 for both institutions.
FirstLine Mortgages, a division of CIBC Mortgages Inc., was fined $50,000 for failing to fully disclose in writing the nature and amount of the non-interest fee for changing the frequency of mortgage payments.
Laurentian Bank of Canada was fined $30,000 for displaying advertisements in its retail branches that represented an interest rate on a mortgage without disclosing the term of the loan, as required by the regulations.
FCAC ensures compliance with the consumer protection laws that apply to banks and federally incorporated trust, loan and insurance companies.