WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) has mandated TD Bank to pay a total of $7.76 million in redress to tens of thousands of affected consumers, in addition to a $20 million civil money penalty. This decision follows the bank’s prolonged dissemination of inaccurate and negative information to consumer reporting companies, which included errors concerning credit card delinquencies and personal bankruptcies.
Consumer reports play a critical role in determining creditworthiness and eligibility for various services such as housing and employment. TD Bank’s misreporting significantly impacted consumers’ credit standing, with errors persisting even after the institution was aware of them. The CFPB found that TD Bank not only failed to promptly rectify these inaccuracies but also continued to share fraudulent information related to accounts it knew or suspected were not legitimate.
CFPB Director Rohit Chopra highlighted the gravity of the situation, stating, “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.” Chopra emphasized the need for regulatory scrutiny on TD Bank to alter its trajectory, suggesting that the bank prioritized growth and mergers over legal compliance and customer fairness.
TD Bank, headquartered in Cherry Hill, New Jersey, operates as a major subsidiary of the Toronto-Dominion Bank, which reported $1.97 trillion in assets in 2024. The U.S. branch of TD Bank ranks as the tenth-largest commercial bank nationwide, with over 1,200 branches and $370 billion in assets as of mid-2024. The bank is known for offering a wide array of financial products, including credit cards and deposit accounts, and for providing consumer data to credit reporting agencies.
The CFPB’s investigation uncovered systemic issues in TD Bank’s reporting practices. For years, the bank submitted inaccurate information to consumer reporting companies, affecting hundreds of thousands of customers. These practices violated both the Fair Credit Reporting Act and the Consumer Financial Protection Act. The bank’s failure to address these inaccuracies in a timely manner exacerbated the negative impact on consumers.
In addition to misreporting credit card statuses, TD Bank improperly labeled closed accounts as active and shared erroneous derogatory information about fraudulent accounts. The bank also neglected its obligation to properly investigate consumer disputes, often failing to conduct any review or notify consumers of dispute outcomes.
As a result, the CFPB exercised its enforcement authority under the Consumer Financial Protection Act to mandate corrective measures. TD Bank must now compensate affected consumers with $7.76 million in redress and pay a $20 million penalty to the CFPB’s victims relief fund.
The bureau’s decision aims to rectify the damages inflicted by TD Bank’s unlawful practices and ensure greater compliance with federal financial protection laws in the future.
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