TD is working to resolve ongoing investigations by US authorities, including the Department of Justice, by the end of the year. These settlements could exceed $3bn in fines, with analysts suggesting the bank may face restrictions on future acquisitions and growth in the US.
Rohit Chopra, the director of the CFPB, criticized TD Bank’s focus on “growth and expanding its empire through mergers” instead of ensuring fair treatment for its customers.
Chopra stated, “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.” He added that regulators would need to carefully monitor the bank to ensure it changes its approach.
The CFPB reported that by January 2022, TD had identified hundreds of thousands of deposit accounts that were either confirmed or suspected to be fraudulent.
However, by April 2023, the bank continued to provide consumer reporting companies with incorrect information about these accounts, as if they belonged to legitimate customers.