U.S. regulator orders TD Bank to pay $28M US over consumer credit reports

On Wednesday, TD Bank was ordered by a U.S. regulator to pay nearly $28 million USD (approximately $38 million CAD) for repeatedly providing inaccurate, negative information about its customers to credit reporting agencies, which may have harmed their credit scores.

The Consumer Financial Protection Bureau (CFPB) found that, over several years, TD Bank had shared incorrect account details, including errors related to personal bankruptcies, credit card delinquencies, and accounts that were suspected of being fraudulently opened. The bank also took "far too long" to fix many of these mistakes and failed to investigate or resolve some customer disputes because it had allocated resources elsewhere, according to the CFPB.

"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 in a statement.

The penalties include a $20 million USD civil fine, along with $7.76 million USD in restitution to tens of thousands of affected customers.

When contacted by CBC News for comment, a TD Bank spokesperson stated that the bank had "self-identified" the issues well before the settlement and had "voluntarily and proactively implemented enhancements to our furnishing and dispute handling practices." The bank emphasized that it fully cooperated to resolve the matter and is committed to fulfilling its responsibilities to its customers.