Financial institution TD has agreed to pay $28 million to the Consumer Financial Protection Bureau (CFPB) after being accused of supplying credit agencies with inaccurate data.
TD Bank Faces $28 Million Fine for Violating Consumer Protection Laws
TD Bank, one of the largest banks in the United States, has been ordered to pay a $28 million fine by the Consumer Financial Protection Bureau (CFPB) for sharing inaccurate customer information with credit reporting agencies and failing to investigate customer disputes.
The CFPB's investigation found that TD Bank violated the Fair Credit Reporting Act and the Consumer Financial Protection Act by repeatedly sharing inaccurate and negative customer information. This included systemic errors about credit card delinquencies and bankruptcies, and information related to fraudulently opened bank accounts.
TD Bank did not properly notify consumers after labeling a dispute as frivolous or irrelevant. The bank also failed to properly conduct investigations into customer disputes or, in some cases, investigate the issues at all. TD was aware of many of the inaccuracies for more than a year before taking action to fix them.
The bank's plans for branch growth in the U.S. have slowed dramatically due to its anti-money laundering (AML) issues. TD has set aside $3.57 billion for expected penalties related to AML matters. The CFPB's investigation into TD's U.S. anti-money laundering program is ongoing, and TD's CEO, Bharat Masrani, expects a "global resolution" on the AML issue by the end of this year.
This is not the first time TD Bank has faced enforcement action from the CFPB. In 2020, the bank was ordered to pay $122 million in penalties and restitution to some 1.42 million consumers related to its overdraft practices.
However, there are no publicly available detailed records of TD Bank's violations specifically under the Fair Credit Reporting Act (FCRA) or the Consumer Financial Protection Act (CFPA) regarding inaccurate customer information, failure to investigate disputes, or related fines and penalties as of the current date.
While the 2025 Robbins case alleged violations of the FCRA along with other consumer protection laws, TD Bank was not found liable at this stage. Related violations have been more directly connected to associated debt collection firms rather than TD Bank itself.
Rohit Chopra, the CFPB's director, has advised that regulators will need to focus major attention on TD Bank to change its course. TD was pursuing a major acquisition during the time period the CFPB identified, but the deal was scuttled in May 2023.
The payment includes $7.76 million in redress to consumers affected by TD's unlawful behavior and a $20 million penalty to the CFPB's victims relief fund. TD has admitted to its mistakes and is taking steps to improve its practices. The bank has pledged to strengthen its internal controls, enhance its consumer complaint response processes, and invest in technology to prevent future errors.
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