If you had a TD Bank credit card or bank account at some point in the last nine years, keep an eye on your email. TD Bank is the latest financial giant to owe its customers for making mistakes with their accounts.
The bank shared inaccurate account information with reporting agencies, including known and suspected fraud, according to a CFPB order. It also failed to investigate or resolve consumer disputes in a timely manner, if at all.
The Consumer Financial Protection Bureau ordered the New Jersey-based bank to pay nearly $7.8 million to its customers and $20 million for illegal conduct that's occurred since 2015. TD will pay affected customers $150 for incorrectly reporting their financial information.
The errors affected tens of thousands of customers, including those with TD Bank deposit accounts, U.S. Bankcard credit cards and retail cards managed by TD Bank. Among the customers affected were those enrolled in TD Cares, a program that allowed consumers to delay payments that were otherwise due during the pandemic. The bank instead erroneously reported hundreds of these accounts as delinquent.
Those inaccuracies have the potential to tarnish your credit, which could affect your ability to take out a loan, get a job or rent an apartment. Here's what action you need to take if you've been affected.
What TD Bank did wrong
The CFPB said TD Bank's breakdowns regarding management and reporting of credit card and bank accounts resulted in errors that impacted consumers' credit, including:
- Reporting incorrect information. TD Bank shared inaccurate information about credit card delinquencies and account status. Even when the bank knew the information was false, it failed to correct the errors.
- Sharing fraudulent information. Even as it identified hundreds of thousands of accounts that were either confirmed or suspected to be fraudulent, the bank continued to share the incorrect information with reporting agencies.
- Failure to resolve disputes. The bank failed to investigate and resolve disputes, and in some cases, never investigated the disputes at all.
Negative marks on a credit report can damage your credit score, affecting your ability to borrow money and the terms you can qualify for. That could make it more expensive to take out a mortgage or raise the interest rate for credit cards.
“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,” CFPB Director Rohit Chopra said in today's announcement. He accused the bank of focusing on its growth and expansion through mergers instead.
When I asked for a response to why TD Bank falsified information for reports and its plans to improve via email, a representative shared this:
"Long before this settlement, TD self-identified these matters and voluntarily and proactively implemented enhancements to our furnishing and dispute-handling practices. TD cooperated fully to resolve this matter and is committed to continuing to deliver on its responsibilities to its customers."
This is the CFPB's second action against TD Bank. In 2020, the bank made headlines for illegal overdraft practices. It was ordered to pay an estimated $97 million to over one million customers, plus a $25 million penalty.
What to do if you've been impacted
If there's a chance you were impacted, keep an eye on your email. Impacted customers will receive an email to the last known address notifying you of the check and providing contact info if you have further questions. You'll then receive a form letter detailing the order in the mail along with a check for $150.
Whether you have an open or closed TD Bank account, here are a few steps you can take to make sure you get your money and ensure your financial reports are accurate.
- Make sure TD Bank has your most recent email and mailing address. Contact customer service at 800-457-2387 to share the information.
- Check your credit report for any errors. If you find an error that you believe stems from TD Bank's system, contact each credit bureau separately. Keep any supporting documentation handy for reference.
- If you were approved for a loan or other borrowing option at a high interest rate based on an inaccurate score, contact your lender to ask about refinancing or other options to save money on interest.
