09:14 AM EDT, 09/11/2024 (MT Newswires) -- The Consumer Financial Protection Bureau (CFPB) on Wednesday ordered TD Bank (TD.TO, TD) to pay US$28 Million for what it termed "illegal breakdowns that potentially tarnished consumer reports".

For starters, CFIB ordered TD to pay US$7.8 million to "tens of thousands of victims of the bank's illegal actions. The CFPB is also ordering TD Bank to pay a $20 million civil money penalty.

"For years, the bank repeatedly shared inaccurate, negative information about its customers to consumer reporting companies," CFPB said.

The information included systemic errors about credit card delinquencies and bankruptcies.

CFPB noted consumer reports, including credit reports, employment screening reports, tenant screening reports, and other background reports, are used by financial institutions, employers, and landlords, among others, to decide whether to extend credit, housing, or employment to a consumer. CFPB said the "inaccurate information" shared by TD Bank related to credit card and bank deposit accounts, including accounts TD Bank knew or suspected were fraudulently opened. "After the bank realized it was botching its reporting to consumer reporting companies, it took far too long to correct many of its errors," CFPB added.

"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," CFPB Director Rohit Chopra said in a statement. "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. Regulators will need to focus major attention on TD Bank to change its course."

TD eased $0.30 to $83.08 on the TSX yesterday.