CFPB orders TD Bank, N.A. to pay $27.76 million for credit reporting violations

On September 11, 2024, the Bureau issued an order against TD Bank, N.A., a national bank headquartered in Cherry Hill, New Jersey. TD Bank furnishes credit information on consumer credit card accounts by sending monthly data files to consumer reporting agencies. TD Bank also furnishes consumer deposit account information to nationwide specialty consumer reporting agencies.

The Bureau found that over several years TD Bank repeatedly furnished to consumer reporting agencies information containing numerous systemic errors and that it knew of many of these inaccuracies for a year or more before fixing them.

In addition, the Bureau found that, for years, TD Bank failed to conduct reasonable and timely investigations of consumer disputes, including sometimes by not conducting any investigation at all. When TD Bank furnished inaccurate consumer information, it may have negatively affected consumers’ access to credit.

Specifically, the Bureau found that with respect to its credit card accounts, TD Bank violated the Fair Credit Reporting Act (FCRA) and its implementing regulation, Regulation V, by

• failing to promptly correct and update information it furnished to consumer reporting agencies that it determined was not complete or accurate;
• failing to accurately report consumers’ participation in COVID-19 accommodations programs pursuant to the CARES Act;
• failing to provide the FCRA-required date of first delinquency on certain delinquent or charged-off accounts;
• failing to conduct reasonable and timely investigations of consumer disputes, including sometimes by not conducting any investigation at all;
• failing to properly notify consumers when deeming a dispute frivolous or irrelevant; and
• failing to establish and implement reasonable written policies and procedures regarding the information furnished to consumer reporting agencies.

The Bureau also found that TD Bank’s failure to investigate consumer disputes and decision to divert resources away from investigating disputes took unreasonable advantage of the inability of consumers to protect their interest in accurate consumer reporting and was therefore abusive in violation of the Consumer Financial Protection Act of 2010.

The Bureau further found that TD Bank violated FCRA and Regulation V with respect to consumer deposit accounts by failing to sufficiently maintain and implement written policies and procedures for furnishing and by failing to promptly correct furnished information after it determined the furnished information was fraudulent.

The order requires TD Bank to take steps to prevent future violations and to pay $7.76 million in redress to affected consumers and a $20 million civil money penalty.