TD Bank Fined $6.4 Million, Will Refund Customers for Credit Card Fee Rebate Errors

The Toronto-Dominion (TD) Bank has been fined $6.4 million and ordered to refund nearly 256,000 customers for errors related to credit card annual fee rebates spanning two decades, a federal regulator said.
The error involved the bank’s employees not properly applying annual fee rebates to credit card account holders, the regulator said. No details about specific cases were provided.
TD paid the $6.5 million penalty in July, about a month after the amount was proposed in a notice of violation, FCAC said. It added that the bank will reimburse affected customers, with a contribution to charity to be made for those who cannot be identified.
“The penalty amount reflects that the Bank was negligent in failing to implement controls and effective compliance monitoring measures to prevent and detect the error over 20 years,” FCAC said.
“It also reflects that the degree of harm was very significant given the length of time of the violation, the number of customers affected and the financial impact.”
The FCAC noted the TD’s “history of violations” in levying the fine.