The US Consumer Financial Protection Bureau (CFPB) ordered TD Bank to pay $7.76 million to tens of thousands of victims of the bank's illegal practices.
Over the years, the bank has repeatedly provided inaccurate negative information about its customers to consumer reporting companies. This information included systematic errors about credit card delinquencies and bankruptcies. In addition to damages, the CFPB orders TD Bank to pay a civil monetary penalty of $20 million.
Key points:
The US Consumer Financial Protection Bureau (CFPB) fined TD Bank $28 million for misreporting customer credit information.
Punitive damages include restitution to affected consumers of $7.76 million and a civil monetary penalty of $20 million.
The bank disseminated fraudulent and inaccurate credit information, affecting access to credit, housing and jobs for tens of thousands of consumers.
Brief description:
The CFPB ordered TD Bank to pay $28 million for systematic failures to report accurate customer information to consumer reporting agencies. For years, TD Bank misrepresented credit card delinquencies and bankruptcies, including fraudulently reporting accounts it knew or suspected were fraudulent. These practices have severely impacted consumers' ability to obtain credit, housing, and employment. The CFPB found TD Bank to have violated the Fair Credit Reporting Act and other consumer protection laws. The penalty includes damages of $7.76 million to affected customers and a fine of $20 million.
Useful information:
Financial institutions must have robust processes for reporting accurate data to credit reporting agencies and handling consumer disputes. Failure to ensure data accuracy can result in significant fines from regulators and undermine consumer confidence.
“TD Bank’s failure to promptly correct known reporting errors has impacted the lives of thousands of consumers,” said CFPB Director Rohit Chopra. The bank's actions underscore the importance of accountability and transparency in credit reporting."
A TD Bank spokesman said the company took steps to address the issue prior to the CFPB settlement.
