Consumer Financial Protection Bureau (CFPB) has fined TD Bank (NYSE:TD) for $28M for disclosing “inaccurate, negative information about its customers to consumer reporting.”
The firm has been asked to pay $7.76M to tens of thousands of customers who have been affected by the actions.
CFPB has also asked TD to pay a $20M civil money penalty.
The information, which the bank had shared, included systemic errors about credit card delinquencies and bankruptcies.
“After the bank realized it was botching its reporting to consumer reporting companies, it took far too long to correct many of its errors,” CFPB said.
“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,” said CFPB director Rohit Chopra.
This will be CFPB’s second enforcement action against TD Bank, after 2020, when the regulator had had asked the firm to provide an estimated $97M in restitution to 1.42M consumers and to pay a $25M penalty for illegal overdraft practice.
