TD Bank Fined $28 Mil for Sending Incorrect Data to Credit Bureaus

People’s credit reports are very important. They affect the ability to get a loan and also the interest rates they pay. In some cases, they would no longer be able to get a mortgage. or get a job.

The Consumer Financial Protection bureau (CFPB) says that the bank’s conduct harmed hundreds of thousands of consumers.

Among the inaccurate data was incorrect credit card delinquencies and bankruptcies. It not only affected credit cards, but also bank accounts.

The CFPB said that they shared this data with the credit bureaus even though they knew or suspected that the data was faulty because the accounts were fraudulent.

Even though the bank knew about this as far back as January 2022, they kept reporting inaccurate data through April 2023.

They also said that the bank “barely lifted a finger to fix it”.

This is not TD Bank’s first rodeo either. In 2020 they paid about a hundred million dollars to over a million consumers for illegal overdraft practices.

Maybe other banks will learn from this. Alternatively, they could consider it a cost of doing business.

For consumers, that means you need to check your credit report. You can do this for free online or by mail. In states like Colorado you have a separate right for copies of your credit reports in addition to the federal right. Credit: The Record

by