The investigation also revealed that TD Bank failed to act on hundreds of thousands of fraudulent account openings, continuing to report false information to credit agencies, further exacerbating the problem for affected customers.
Previous Penalties
This is not the first major penalty TD Bank has faced. In 2020, the CFPB imposed a $122 million fine on the bank for charging illegal overdraft fees and using deceptive practices to enroll customers in debit card overdraft services. Additionally, in August 2023, TD Bank set aside $2.6 billion to cover fines related to ongoing civil and criminal investigations into its compliance with anti-money laundering regulations.
