Mortgage penalty and early repayment

Description
We have instituted class actions against the Bank of Montreal, the National Bank of Canada and the Fédération des caisses Desjardins du Québec to obtain reimbursement of certain penalties imposed on consumers in the event of prepayment of a real estate mortgage.
These companies calculate the penalty on the balance without deducting the amount of capital that consumers can repay annually without penalty.

Find out more about each class action:

Class action against Bank of Montreal

On April 19, 2007, we filed a lawsuit against Bank of Montreal.

Where we stand
On August 21, 2012, Judge Marie-Christine Laberge ordered Bank of Montreal to reimburse its customers who had to pay the penalty.
Bank of Montreal has appealed this decision.
Read the judgment here.

Our members
All individuals in Quebec who have prepaid their residential mortgages in full and who have paid the Bank of Montreal a penalty calculated on the entire balance without the bank deducting from the balance the amount of capital provided for in the mortgage contract that could be repaid annually without penalty, between August 20, 2001 and August 7, 2008.

To be a member of the class and be eligible for the class action, you must have signed, prior to September 2006, a mortgage contract with Bank of Montreal at fixed rate-Limited Prepayment Privilege (or similar form), not be or have been in default at the time of the prepayment, not have made a prepayment during the calendar year preceding the prepayment equivalent to the amount of principal repayable without penalty and have occupied your residence of less than seven dwelling units at the time of or prior to the prepayment.

If the definition of member applies to you, we invite you to consult the website of the law firm Adams Gareau at the following page:
http://www.adamsgareau.com/recours/banque_mtl.html

Read the opinion of the Quebec Superior Court, August 7, 2008
Read the press release, August 11, 2008

Class action against the National Bank of Canada

On November 12, 2008, the Court of Appeal refused to authorize our class action.

Class action against Fédération des caisses Desjardins du Québec and Caisse populaire Desjardins de St-Laurent

On August 4, 2010, the Court of Appeal refused to authorize our class action.

Read the Court of Appeal opinion, August 4, 2010

Update date: December 17, 2012