Consumer watchdog orders TD Bank to pay $28M fine over consumer report errors

TD Bank fine overview:

• Who: The Consumer Financial Protection Bureau has ordered TD Bank to pay a $28 million fine.
• Why: The CFPB says TD Bank knowingly reported inaccurate information about consumer accounts to credit reporting agencies.
• Where: The TD Bank fine consent order was filed with the U.S. Consumer Financial Protection Bureau.

The Consumer Financial Protection Bureau ordered a $28 million TD Bank fine over the bank’s alleged failure to ensure accurate consumer credit reports, Law360 reports.

According to the CFPB’s consent order, TD Bank will pay nearly $8 million to its customers for errors it made regarding delinquent credit card accounts and bankruptcies and more than $7.7 million to tens of thousands of consumers for whom the bank reported “inaccurate, negative information.”

“The CFPB’s investigation found that TD Bank illegally threatened the consumer reports of its customers with fraudulent information and then barely lifted a finger to fix it,” CFPB Director Rohit Chopra said.

TD Bank fine to penalize bank for knowingly reporting inaccurate information

The CFPB says that TD Bank knowingly reported inaccurate information to credit reporting bureaus and failed to correct the mistakes in a timely manner.

Additionally, the CFPB says its investigation found TD Bank failed to address potentially fraudulent accounts and continued to share fraudulent information with the credit reporting agencies.

These alleged failures violate the Fair Credit Reporting Act and the Consumer Financial Protection Act and affected thousands of consumers who applied for credit, employment and housing, according to the CFPB.

In 2020, the CFPB issued a $122 million TD Bank fine over allegations the bank imposed unlawful fees without obtaining proper consent from customers for a debit card overdraft service.

TD Bank also sometimes allegedly engaged in “deceptive and abusive” tactics with customers during the enrollment process, the CFPB said.

Consumers affected by the CFPB consent order include certain retail card customers for whom TD Bank provided inaccurate information about delinquent accounts after they had settled their accounts or paid them in full and card customers who subscribed to the TD Cares program but for whom TD Bank violated its own policies for the program by improperly reporting information or charging fees.

A TD Bank class action lawsuit filed earlier this summer alleged the bank unfairly assessed fees on account holders who attempt to deposit a check that bounces.

What do you think about the $20 million TD Bank fine? Join the discussion in the comments.

The TD Bank fine lawsuit is In the Matter of TD Bank NA, Case No. 2024-CFPB-0009, before the United States of America Consumer Financial Protection Bureau.

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