The Royal Bank of Canada (RBC) has been ordered to pay a $4.25 million penalty for violating consumer protection laws, the Financial Consumer Agency of Canada (FCAC) announced on June 25, 2026.
Details of the violation
The penalty stems from RBC's failure to comply with regulations regarding disclosure of fees and interest rates on certain consumer credit products. The FCAC found that RBC did not provide clear and timely information to customers, which is required under Canadian banking laws.
According to the FCAC, the violations occurred between 2019 and 2023, affecting thousands of customers. The agency stated that RBC's practices were not in line with the Bank Act and the Code of Conduct for the Credit and Debit Card Industry.
Impact on consumers
As part of the penalty, RBC will also be required to review its compliance practices and report back to the FCAC. The bank has apologized and stated that it has already taken steps to address the issues.
“We recognize that we fell short of our commitment to provide clear and transparent information to our clients,” said an RBC spokesperson. “We have implemented changes to ensure compliance going forward.”
The $4.25 million penalty will be paid to the Receiver General for Canada. The FCAC emphasized that this penalty reflects the seriousness of the violations and serves as a deterrent to other financial institutions.
