The Consumer Financial Protection Bureau (CFPB) accuses TD Bank of repeatedly jeopardizing its customers’ ability to access employment, housing and credit.
According to the U.S. Financial Regulator, TD Bank has for years systematically shared “inaccurate, negative information” about its customers with consumer reporting agencies, jeopardizing their creditworthiness, employment and housing prospects, as well as other human endeavors that require consumer reporting.
“The inaccurate information shared by TD Bank related to credit card and bank deposit accounts, including accounts that TD Bank knew or suspected had been opened fraudulently. After the bank realized she botched its reporting to consumer reporting companies, it took far too long to correct many of its errors.”
The CFPB says TD Bank must now compensate tens of thousands of consumers to the tune of $7.76 million. TD Bank will also pay a $20 million fine to the Consumer Financial Protection Bureau’s victim assistance fund.
Some of the inaccurate and negative information TD Bank shared with consumer reporting companies involved credit cards.
“TD Bank reported inaccurate information about its customers’ credit card accounts to consumer reporting companies. Even though she knew she was sending incorrect information for consumer reports, the bank failed to immediately correct her errors. In some cases, TD Bank shared inaccurate information about credit card delinquencies. In other cases, the bank shared information that made it appear that accounts were in use even though customers had voluntarily closed them.”
According to the CFPB, TD Bank also shared fraudulent information about some of its customers who were suspected or confirmed victims of fraudulent account openings.
“Anomalous information, including information that some of the fraudulent accounts were overdrawn, was shared with consumer reporting companies.”
TD Bank also failed to adequately investigate and resolve consumer disputes, the financial regulator said.
“TD Bank did not have sufficient processes in place to investigate consumer reporting disputes and diverted resources from investigating disputes to other parts of its business. Subsequently, it subsequently failed to conduct reasonable and timely investigations into consumer disputes, sometimes even by not conducting any investigations at all. The company also failed to properly notify consumers after it deemed a dispute frivolous or irrelevant.”
Cherry Hill, New Jersey-based TD Bank currently has just over $370 billion in total assets, according to the Federal Reserve.
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