TD Bank was ordered by a U.S. regulator on Wednesday to pay nearly $28 million US for repeatedly sharing inaccurate, negative information about its customers with credit reporting agencies, potentially tarnishing customers’ credit score.
Bank provided inaccurate information about customers to credit reporting agencies
TD Bank was ordered by a U.S. regulator on Wednesday to pay nearly $28 million US ($38 million Cdn) for repeatedly sharing inaccurate, negative information about its customers with credit reporting agencies, potentially tarnishing customers’ credit scores.
The Consumer Financial Protection Bureau said that for several years, TD repeatedly provided inaccurate account information, including errors about personal bankruptcies and credit card delinquencies, and accounts that the bank knew or suspected were fraudulently opened.
The bank also took “far too long” to correct many mistakes, and did not investigate and resolve some consumer disputes because it had diverted resources to other parts of its business, the CFPB said.
“TD Bank illegally threatened the consumer reports of its customers with fraudulent information and then barely lifted a finger to fix it,” CFPB director Rohit Chopra said in a statement.
The payout includes a $20 million US civil fine, plus $7.76 million US of restitution to tens of thousands of customers.
TD did not immediately respond to requests for comment.
After a major U.S. investigation, TD admitted it failed to stop criminals from using its branches to launder money. The Canadian-owned bank is one of several under investigation by the U.S. government and financial regulators.