TD Bank has been fined nearly $28 million by the Consumer Financial Protection Bureau (CFPB) for sharing incorrect information about its customers that could have jeopardized their access to credit, housing, and employment.

The Toronto-based bank was ordered to pay $7.76 million in restitution to affected consumers and an additional $20 million to the CFPB’s victim relief fund, which compensates individuals harmed by violations of federal consumer financial protection laws. The CFPB’s investigation revealed that TD Bank provided inaccurate data about customers’ credit card delinquencies and bankruptcies to consumer reporting agencies. This misleading information was used to make decisions about extending credit and providing housing or employment.

According to the CFPB, TD Bank was aware of these inaccuracies for over a year before addressing them. CFPB Director Rohit Chopra criticized the bank, stating, “Rather than treating its customers fairly and following the law, TD Bank’s management clearly cared more about growth and expanding its empire through mergers.”

This fine marks TD Bank’s second violation with the CFPB. In 2020, the bank was penalized $122 million for illegal overdraft practices. Last month, TD Bank also set aside billions of dollars to cover potential fines related to investigations into anti-money laundering practices.

TD Bank shares showed a slight increase to $61.30 around 12:45 p.m. ET on Wednesday.

By sanya

I’m a finance writer with  three years of experience in investment analysis. At Investorwelcome , I translate complex financial concepts into clear, actionable insights to help investors navigate the market with confidence. Combining my solid academic background with practical industry knowledge, I’m dedicated to providing readers with accurate and timely information. My goal is to empower both new and seasoned investors by simplifying intricate data and offering strategic advice. When I’m not writing, I stay engaged with market trends and investment innovations to ensure my content remains relevant and valuable.

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