TD Bank Fined $28 Million for Harming Consumer Credit Reports

Consumers to receive $8 million to compensate for damage

The Consumer Financial Protection Bureau (CFPB) has fined TD Bank $28 million for actions taken by TD that resulted in negative information being entered on consumer credit reports.

The CFPB's order says TD Bank reported inaccurate negative information about consumers to credit reporting agencies, including reporting delinquent balances or bankruptcies that had not happened. The result was a negative impact on the consumer's credit report, which impacted both the ability to borrow and the cost of obtaining credit. Credit reports are also often used in determining whether or not to rent to someone and in some cases, are used in employment decisions.

“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,” said CFPB Director Rohit Chopra. “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. Regulators will need to focus major attention on TD Bank to change its course.”

The CFPB review found an estimated $8 million in potential damage to consumers, and TD will be required to pay this amount to the consumers it harmed. Additionally, TD will pay a $20 million civil money penalty.

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