TD Toronto Dominion Bank

   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)

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