TD Bank Fined $28 Million for Inaccurate Consumer Reporting
TD Bank has been ordered to pay nearly $28 million by the CFPB for repeatedly sharing inaccurate information about its customers with credit reporting agencies. The inaccuracies included personal bankruptcies and credit card delinquencies, which potentially harmed customers' credit scores.
| Score | Value |
|---|---|
Scale | 6 |
Novelty | 5 |
Positivity | 6 |
Reliability | 9 |
Actionability | 7 |
Society | 8 |
Journalism | 5 |
Highlights
- TD Bank was ordered by the U.S. Consumer Financial Protection Bureau (CFPB) to pay nearly $28 million for sharing inaccurate information about customers.
- The inaccurate information included personal bankruptcies, credit card delinquencies, and accounts that were suspected to be fraudulently opened.
- TD Bank will pay $20 million in civil penalties and $7.76 million in restitution to affected customers.
- The CFPB stated that TD Bank took too long to correct the inaccuracies and failed to properly investigate consumer disputes.
- This is the second enforcement action against TD Bank by the CFPB, following a previous fine of $122 million in 2020 for illegal overdraft practices.
Perspectives
- CFPB Director Rohit Chopra criticized TD Bank's management for prioritizing growth and expansion over fair treatment of customers, suggesting that the bank's actions were abusive and detrimental to consumers' credit reports. [1][2][4]
- A spokesperson for TD Bank stated that the bank had self-identified the issues and implemented enhancements to its reporting and dispute handling practices prior to the CFPB settlement, indicating a commitment to resolving the problems. [1][2][5]