TD Bank has been fined almost $28 million by the US government after the company allegedly provided inaccurate information about many of its US customers to companies that check people's credit.
These mistakes could have impacted people's credit scores, making it harder for them to get loans, rent houses, or even get jobs.
TD Bank Shared Incorrect Customer Data
The Consumer Financial Protection Bureau (CFPB), a group that protects customers, said on Wednesday (September 11) that TD Bank shared wrong details like personal bankruptcies, late credit card payments, and even some fake bank accounts. The bank, which is part of a big Canadian bank, knew that some of this information was wrong but still sent it to credit agencies.
The CFPB also said that TD Bank was slow to fix these mistakes.
"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 Rohit Chopra, the director of the CFPB.
As part of the statement, TD Bank will pay $7.8 million to customers affected by these mistakes and an additional $20 million as fine. The bank has also agreed to make changes to prevent this from happening again in the future.
The wrong information was used in background checks for jobs and housing, which means some people may have been turned down because of the mistakes. The CFPB said this made life harder for many customers.
TD Bank Reaffirms Commitment to Customers
A spokesperson for TD Bank said they had already found these problems and started fixing them before the settlement. The company had already discovered the issues and taken steps to address them before the settlement was reached, according to the spokesperson.
He told the CBS Moneywatch that the bank made improvements to how they handle customer disputes and the information they share. TD Bank reportedly cooperated with authorities and is committed to meeting its responsibilities to customers.
This isn't the first time TD Bank has been in trouble. In 2020, the CFPB ordered the bank to pay $122 million in fines and refunds to customers because of illegal overdraft fees. Back then, TD Bank had charged customers extra money for overdrafts, even though they said the service was free, according to Reuters.
TD Bank has over 1,100 branches in the eastern US and is part of the Toronto-Dominion Bank, one of the biggest banks in North America.
