TD Bank ordered by US CFPB to pay $28 million over consumer credit reports

(Reuters) -TD Bank was ordered by a U.S. regulator on Wednesday to pay nearly $28 million for repeatedly sharing inaccurate, negative information about its customers with credit reporting agencies, potentially tarnishing customers' credit scores.

The Consumer Financial Protection Bureau said that for several years, TD repeatedly provided inaccurate account information, including errors about personal bankruptcies and credit card delinquencies, and accounts that the bank knew or suspected were fraudulently opened.

The bank also took "far too long" to correct many mistakes, and did not investigate and resolve some consumer disputes because it had diverted resources to other parts of its business, the CFPB said.

"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.



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

TD did not immediately respond to requests for comment.

Source: Investing.com