CFPB Orders TD Bank to Pay $28M for Credit Reporting Errors

Case: In re TD Bank, N.A.
Source: Consumer Financial Protection Bureau
Citation: File No. 2024-CFPB-0009 (Sept. 11, 2024)
Decided: September 11, 2024
Bottom line: Furnishers must fix data they know is wrong and actually investigate disputes. This order shows the kinds of systemic errors that can sit on credit and bank-account reports for years.

Background

Banks and lenders that send account data to credit bureaus are “furnishers.” Under 15 U.S.C. § 1681s-2(a), a furnisher that learns it has reported incomplete or inaccurate information must promptly correct it, must report the date of first delinquency on charged-off accounts, and must investigate disputes consumers send to it directly. Under § 1681s-2(b), it must investigate disputes forwarded by a credit bureau. Regulation V adds a duty to keep reasonable written policies on accuracy.

TD Bank furnishes credit card data to the national credit bureaus and checking and savings account data to specialty bureaus that banks use to screen new account applicants. On September 11, 2024, the CFPB issued a consent order against it. TD Bank consented without admitting or denying the findings.

What the order found

The CFPB’s findings describe several systemic failures:

Unreported payments. A collection agency sent TD Bank monthly payment files on charged-off retail card accounts, but the bank did not enter the payments into its system. Accounts that consumers had paid or settled kept showing unpaid. The bank found the problem in April 2017 and did not send corrections until mid-2019, affecting more than 28,000 accounts.
Wrong delinquency dates. For at least 47,000 accounts, the bank reported the charge-off date as the date of first delinquency. That made delinquencies look more recent and could keep them on reports longer than the seven years the FCRA allows.
Bankruptcy errors. The bank inaccurately or incompletely reported bankruptcy status, including discharges and the bankruptcy chapter.
Fraudulent deposit accounts. By January 2022, the bank had identified a large number of deposit accounts that were confirmed or suspected to be fraudulent. As of April 2023, it was still furnishing data on hundreds of thousands of them, including derogatory overdraft information, and did not fully correct it until August 2023.
Skipped disputes. From September 2018 to March 2019, the bank redirected resources away from retail card dispute investigations, and the order finds direct dispute investigations “were not conducted for seven months.” The CFPB found that choice to be abusive under the Consumer Financial Protection Act.

What the order requires

TD Bank must pay $7.76 million in redress to affected consumers and a $20 million civil money penalty. It may not violate the furnisher provisions, must promptly correct inaccurate data it identifies, and must conduct reasonable and timely investigations of disputes. It must adopt a compliance plan, report annually to its board on credit reporting issues and their root causes, and keep disputes and response letters for at least five years. The order runs at least five years. As of our review, the CFPB’s enforcement page shows no termination or modification.

Then-Director Rohit Chopra said the bank “barely lifted a finger to fix” the fraudulent information it was reporting.

Our take

These findings are a useful catalog of how furnisher errors happen. Most were not one-off typos. They were system problems the bank identified and then took a year or more to fix, while consumers’ reports carried the errors. The fraudulent deposit account findings are especially significant. A consumer whose identity was used to open a bank account can end up blocked from opening real accounts because a specialty bureau shows an unpaid overdraft.

An agency order does not decide any individual consumer’s claim, and TD Bank did not admit the findings. But the conduct described, such as reporting a debt as unpaid after it was settled or reporting a wrong delinquency date, is the kind of inaccuracy that private FCRA suits address.

What it means if your report is wrong

Check both your credit reports and your bank-account screening reports, such as ChexSystems and Early Warning Services. Look for paid or settled accounts still showing a balance, a delinquency date that does not match your records, a discharged bankruptcy account shown as owing, or accounts you never opened. Dispute in writing with the bureau, attach your proof, and keep copies. A free case review can tell you whether a furnisher’s failure to fix your report supports a claim, and there is no fee unless we win.

Sources

Primary

Commentary we reviewed

News: CFPB hits TD Bank with $28M in penalties for credit-reporting abuses (National Mortgage News)

Updated November 1, 2026. "Our take" is the firm's opinion. This page is general information, not legal advice, and later decisions may change the law.