TD Bank was ordered by the Consumer Financial Protection Bureau to pay $28 million for sharing inaccurate customer data with credit reporting agencies.
The CFPB also cited the Canadian bank for failing to investigate customer disputes, a move that could have impacted their ability to access credit.
The amount includes about $7.8 million in redress to “tens of thousands of consumers affected by its unlawful behavior” and a $20 million penalty that will go toward the CFPB’s victims relief fund, the agency said.
The 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,” CFPB Director Rohit Chopra said in a press release.
“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,” Chopra added. “Regulators will need to focus major attention on TD Bank to change its course.”
TD said in a statement that it self-identified the issues “long before this settlement” and “proactively implemented enhancements to our furnishing and dispute handling practices.” The statement added that the bank “cooperated fully to resolve this matter.”