U.S. CFPB Announces Settlement With TD Bank
August 20 2020 - 5:48PM
Dow Jones News
By Stephen Nakrosis
The U.S. Consumer Financial Protection Bureau said Thursday it
reached a settlement with TD Bank, NA, regarding the marketing and
sale of the bank's optional overdraft service, known as Debit Card
Advance.
The CFPB said it found "that TD Bank's overdraft enrollment
practices violated the Electronic Fund Transfer Act and Regulation
E by charging consumers overdraft fees for ATM and one-time debit
card transactions without obtaining their affirmative consent, and
that TD Bank engaged in deceptive and abusive acts or practices in
violation of the Consumer Financial Protection Act of 2010."
Under the terms of the consent order, the CFPB said, TD Bank
will pay about $97 million in restitution to some 1.42 million
consumers and will also pay a civil fine of $25 million.
TD Bank said the settlement "largely addresses certain
disclosure and enrollment processes for customers who enrolled in
the service at a TD store or offsite event between 2014 to 2018,"
and also said it "did not admit to any wrongdoing under the civil
settlement."
Greg Braca, TD Bank president and chief executive, said,
"Although we disagree with the CFPB's conclusions, we have
cooperated fully to resolve this matter and are moving forward with
a continued focus on meeting the needs of our customers."
"Throughout the period in question, TD had a clear process to
secure formal consent before providing this service to customers,
enabling them to make an informed and conscious choice," Mr. Braca
added.
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
August 20, 2020 18:33 ET (22:33 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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