Key Takeaways
- TD Bank was ordered to pay almost $28 million to the Consumer Financial Protection Bureau (CFPB) for sharing inaccurate information about its customers that could have threatened their ability to access credit, housing, and employment.
- The bank shared information about its customers’ credit card delinquencies and bankruptcies that it knew or suspected was incorrect with consumer reporting companies.
- In 2020 the CFPB fined TD Bank for illegal overdraft practices.
- Last month, TD Bank said it set aside billions of dollars in anticipation of fines arising from investigations into anti-money laundering practices.
TD Bank (TD) on Wednesday was ordered to pay millions of dollars in fines to the Consumer Financial Protection Bureau (CFPB) for sharing inaccurate, negative information about its customers with consumer reporting companies.
The Toronto-based bank was ordered to pay $7.76 million to tens of thousands of consumers affected by the company’s behavior. TD Bank also will have to pay $20 million to the CFPB’s victim relief fund, which provides money to people harmed by companies that broke federal consumer financial protection laws.
The CFPB said the bank gave inaccurate information about its customers’ credit card delinquencies and bankruptcies to consumer reporting companies, whose information is used to decide whether to extend credit, housing, or employment to people. The CFPB’s investigation found that for several years, TD Bank gave out account information that the bank knew or suspected was incorrect.
The bank knew of these inaccuracies for more than a year before fixing them, the CFPB said.
CFPB: TD Bank ‘Cared More About Growth’ Than Customers
“Rather than treating its customers fairly and following the law, TD Bank’s management clearly cared more about growth and expanding its empire through mergers,” Rohit Chopra, CFPB director, said in the press release.
This is TD Bank’s second violation with the CFPB. In 2020 the bank was ordered to pay $122 million in fines for illegal overdraft practices.
Last month, TD Bank also disclosed that it set aside billions of dollars in anticipation of fines arising from investigations into anti-money laundering practices.
TD Bank shares were up slightly at $61.30 around 12:45 p.m. ET Wednesday.