TD Bank hit with $28M penalty over misreported customer data

TD Bank has been subjected to a $28 million fine by the Consumer Financial Protection Bureau after reporting inaccurate and negative customer information to credit reporting agencies, almost $8 million of which will be provided to individuals who experienced credit, employment, and housing challenges as a result of the misreported data, reports The Record, a news site by cybersecurity firm Recorded Future.

Despite being aware of the hundreds of thousands of fraudulent or suspicious deposit account openings in January 2022, TD Bank continued sending information regarding such accounts to consumer reporting agencies without investigating if they were owned by their customers until April 2023, alleged the CFPB. "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. 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," said CFPB Director Rohit Chopra.