This week, the Supreme Court of Canada will decide whether to hear an appeal from a bank customer, who had their accounts closed by their bank — seeking to argue that the consumer protection provisions of banking legislation require banks to provide certain services.
Last year, the Ontario Superior Court of Justice ruled against a former customer of Bank of Montreal, Samer Bishay, who asked the court to order the bank to reopen a chequing account that he’d opened at the bank in 2022, but the bank decided to shut down in 2024.
According to the court’s ruling, in May 2024, BMO notified Bishay that it was terminating its banking relationship with him, citing “information indicating [his] past business or personal activity” did not align with BMO’s “risk tolerance.”
At trial, while he acknowledged that, under common law, the bank was entitled to terminate the relationship with reasonable notice, he argued that it was required to open a retail deposit account for him under the consumer provisions of the Bank Act.
The court rejected his application, finding that while the bank was obliged to open an account in the first place, the decision to later close the account was governed by the account agreement under common law.
On appeal, Bishay argued that the consumer provisions of the banking legislation require the bank to keep an account open unless one of the exceptions set out in the legislation applies — including evidence of illegal or fraudulent activity, material misrepresentations, and to protect the bank’s employees.
The Court of Appeal rejected that argument, upholding the lower court’s decision.
Now, the Supreme Court will decide whether to hear a further appeal that would seek to revisit the question of whether access to an account is a protected right under banking legislation, among other issues.
The court will issue its decision on leave on April 23.