Fair Credit Reporting Act
In Re: TD Bank
Date: Sept. 11, 2024
Issue: TD Bank’s consent order with the Consumer Financial Protection Bureau to resolve allegations claiming the bank violated the Fair Credit Reporting Act, its implementing Regulation V (the Furnisher Rule), and the Consumer Financial Protection Act.
Case Summary: TD Bank agreed to pay $28 million to resolve CFPB’s allegations claiming it violated the FCRA, Furnisher Rule and CFPA by sharing “inaccurate, negative information” with consumer reporting agencies (CRA).
From Jan. 1, 2017, to Dec. 31, 2023, TD Bank furnished information regarding consumer credit card accounts to CRAs. These credit card accounts included two separate portfolios: Retail Card Services and U.S. Bankcard. TD Bank also furnished consumer deposit account information to Nationwide Specialty Consumer Reporting Agencies.
CFPB alleged TD Bank committed several violations relating to credit card accounts offered by the bank. According to CFPB, TD Bank violated the FCRA by failing to: promptly correct information furnished to CRAs after it determined the furnished information was not complete or accurate; properly report account statuses; and properly report dates of first delinquency. CFPB also claimed TD Bank violated both the FCRA and the Furnisher Rule by not conducting reasonable and timely investigations of consumer disputes and not properly notifying consumers after determining disputers were frivolous or irrelevant. Additionally, CFPB alleged TD Bank violated the Furnisher Rule by not establishing and implementing reasonable written policies and procedures regarding the credit card account information the bank furnished. Finally, CFPB alleged TD Bank violated the CFPA by not investigating consumer disputes and taking unreasonable advantage of consumers’ inability to protect their interests.
CFPB also claimed TD Bank committed two violations of law relating to deposit accounts. According to CFPB, TD Bank violated the FCRA by not promptly correcting information it furnished to NSCRAs after determining the furnished information was fraudulent. In addition, CFPB alleged TD Bank violated the Furnisher Rule by failing to establish and implement reasonable written policies and procedures regarding the deposit account information the bank furnished. The bureau emphasized TD Bank’s alleged violations of the FRA and Furnisher Rule are also violations of the CFPA.
To resolve the allegations, TD Bank agreed to pay a $20 million civil penalty to CFPB. TD Bank also agreed to pay approximately $8 million to compensate its customers.
Bottom Line: TD Bank did not admit to or deny CFPB’s allegations.
Documents: Order
