The U.S. Consumer Financial Protection Bureau (CFPB) ordered TD Bank to pay $7.76 million to tens of thousands of victims of the bank’s illegal actions. For years, the bank has repeatedly shared inaccurate, negative information about its customers with consumer reporting companies. The information included systemic errors about credit card delinquencies and bankruptcies. In addition to the redress, the CFPB is ordering TD Bank to pay a $20 million civil money penalty.
Key Points:
- The U.S. Consumer Financial Protection Bureau (CFPB) fined TD Bank $28 million for inaccurately reporting customer credit information.
- Penalties include $7.76 million in redress to affected consumers and a $20 million civil money penalty.
- The bank shared fraudulent and inaccurate credit information, impacting access to credit, housing, and employment for tens of thousands of consumers.
Short Narrative:
The CFPB ordered TD Bank to pay $28 million for systemic failures in accurately reporting customer information to consumer reporting agencies. For years, TD Bank provided inaccurate data regarding credit card delinquencies and bankruptcies, including sharing fraudulent information about accounts it knew or suspected were illegitimate. These practices severely impacted consumers’ ability to access credit, housing, and jobs. The CFPB found TD Bank in violation of the Fair Credit Reporting Act and other consumer protection laws. The penalties include $7.76 million in redress for affected customers and a $20 million fine.
Actionable Insight:
Financial institutions must have robust processes in place for accurate reporting to credit agencies and handling consumer disputes. Failure to ensure data accuracy can lead to severe regulatory penalties and undermine consumer trust.
“TD Bank’s failure to promptly address known reporting errors affected the livelihoods of thousands of consumers,” said CFPB Director Rohit Chopra. The bank’s actions highlight the importance of accountability and transparency in credit reporting.
A spokesperson for TD Bank said the company took action to address the problem before the CFPB settlement.
