TD Bank, America's Most Convenient Bank®, Issues Statement on Settlement with the Consumer Financial Protection Bureau
Settlement Resolves Matter Related to Debit Card Advance Overdraft Service for Customers Who Enrolled Between 2014 to 2018
CHERRY HILL, N.J., Aug. 20, 2020 /PRNewswire/ -- TD Bank, America's Most Convenient Bank®, a member of TD Bank Group (TSX and NYSE: TD), issued the following statement on a civil settlement with the Consumer Financial Protection Bureau (CFPB) that focuses primarily on TD's Debit Card Advance optional overdraft service for customers. 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.
"At TD, we put our customers first and our business is built on a foundation of ethics, integrity and trust," said Greg Braca, President and CEO, TD Bank, America's Most Convenient Bank®. "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. Prior to this settlement, TD had already voluntarily and proactively implemented enhancements to our Debit Card Advance disclosure and enrollment processes beginning in 2014. 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."
Debit Card Advance (DCA) is an optional overdraft service. Customers who enroll in the service authorize TD Bank to pay ATM and one-time debit card transactions when they don't have enough money available in their account to cover transactions. DCA provides customers with a safe, reliable source of short-term liquidity and helps them avoid the inconvenience that may result from declined transactions.
TD Bank obtains formal consent from customers prior to enrolling them in the DCA service. And when overdrafts occur, TD Bank alerts the customer, provides tips for managing their accounts to help avoid future overdrafts, and reminds customers that they may conveniently unenroll from DCA at any time by contacting the Bank. Most customers who enroll in and use the DCA service choose to remain enrolled.
TD Bank did not admit to any wrongdoing under the civil settlement. The Bank will continue to offer the DCA optional overdraft service, which is valued by customers and helps them avoid declined transactions due to insufficient funds.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 9 million customers with a full range of retail, small business and commercial banking products and services at more than 1,200 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com/us.
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SOURCE TD Bank
