Brigette Honaker  |  July 27, 2018

Category: Consumer News

TD Bank Sales Practices Under Scrutiny Following Employee TestimonyTD Bank sales practices have recently come under scrutiny after employee allegations that the company forced unrealistic sales goals, allegedly leading to accounts being opened for customers without their knowledge or permission.

In early March 2016, Canadian news source CBC released an article containing alleged employee testimony, claiming that accounts are being opened for consumers without their knowledge or permission. The article included stories from three longtime employees alleging that TD Bank sales practices forced them and other employees to open unnecessary accounts for customers.

In the past few years, revenue goals set for tellers have more than tripled. The tellers are allegedly under immense pressure to push unnecessary products on consumers, desperate to meet their sales goals. Some employees have admitted to breaking the law by increasing credit limits or opening unnecessary accounts for consumers without their consent, just to meet their sales goals.

“When I come into work, I have to put my ethics aside and not do what’s right for the customer,” the teller told CBC. “You don’t know what it’s like to go to bed at night knowing your job is now to set people up for financial failure.”

Managers are allegedly under similar pressure. They are required to pressure tellers into meeting high sales goals and are responsible for punishing the employees should they fail. When tellers fail to reach their goals, they are allegedly labeled as “underperformers” and placed on a “Performance Improvement Plan”. If sales performance doesn’t improve after being put on the plan, the teller is allegedly at risk for termination.

Following their initial article, CBC received an outpouring of employee testimonies supporting allegations that TD Bank sales practices create a negative environment for customer financial health. These new allegations were included in a second article.

TD Bank Group denied CBC’s request for an interview, but responded to the articles in an email, denying all allegations that their tellers are encouraged to deceive consumers and sell them unnecessary products. “Our expectations are that our employees should never sell a customer a product that doesn’t fill a need,” said spokesperson Daria Hill.

“TD is in the trust business. We know we must earn our customers’ trust before we earn their business,” said CEO Bharat Msrani in a press release. “We take the feedback we have received in this area very seriously. We will review all of the concerns raised and we are committed to doing the right thing.”

Following the two articles criticizing TD Bank sales practices, TD’s stocks have dropped. This allegedly lead stock analysts from National Bank, RBC Capital Markets, and Eight Capital to downgrade their outlook for the bank’s performance. Following the stock drop, a U.S. law firm announced that it was pursuing a class action on behalf of investors who suffered losses from the stock drop.

These allegations may remind many of the past Wells Fargo scandal, but this behavior may be more common than the reasonable consumer assumes. Other banks facing similar allegations include Bank of America, Capital One, HSBC, Royal Bank of Canada, and BOK. Affected consumers may be eligible to participate in future litigation, should banks be found in violation of regulations.

Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. Some of the banks being investigated include:

  • Bank of America
  • BOK Financial
  • Capital One
  • HSBC
  • Royal Bank of Canada
  • TD Bank

The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.

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