TD Bank Fined $28M For Sharing Inaccurate Customer Information

TD Bank has been ordered to pay almost $28 million in fines to the Consumer Financial Protection Bureau for sharing incorrect information about its customers that could have harmed their ability to get credit, buy real estate, or get a job.

The CFPB says Cherry Hill-based TD Bank, with many South Jersey locations,  gave out the wrong information about personal bankruptcies and credit card delinquencies and took "far too long" to correct their mistakes.

TD Bank Charged With Threatening Customers' Credit Scores

In the report released on Wednesday, the CFPB said “abusive” conduct took unreasonable advantage of customers’ inability to monitor how TD Bank, one of the 10 largest U.S. commercial banks, reported their credit information.

“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.

Why Were These Mistakes Made?

Can you imagine how someone who counted on financial data from TD Bank to buy a home and the purchase fell through must feel about this news?

Wednesday's report says that TD Bank made the errors because it was distracted by its unsuccessful attempt to buy the Tennessee bank, First Horizon.

TD announced the acquisition of First Horizon in February 2022.

But, by the time of the merger agreement deadline in 2023, it became unlikely that the Federal Reserve would approve the sale, and the deal was dropped, according to Motley Fool.

It's kind of ironic that TD Bank was so eager to purchase a property that they mishandled their customer's information necessary to purchase a property.

The fine payout includes a $20 million civil fine, plus $7.76 million of restitution to tens of thousands of customers.

TD did not admit or deny wrongdoing.