By Paul Vieira
OTTAWA--Canada's consumer-finance regulator leveled a multimillion-dollar fine against TD Bank for errors that led to customers overpaying interest and principal costs.
This marks the latest high-profile financial penalty the Canadian lender has to manage, as it revamps its operations to deal with compliance shortcomings highlighted by authorities in the U.S. and Canada.
The fine unveiled Monday totaled C$5.5 million Canadian dollars ($3.95 million), according to the Financial Consumer Agency of Canada. The regulator said Monday the bank failed to provide more than 160,000 customers with mortgages, home-equity credit lines, and personal and business loans with accurate information regarding financing costs. This led to overpayments by customers of about C$12.1 million.
The agency said TD Bank has reimbursed its customers. A spokeswoman for TD Bank didn't immediately respond to a request for comment.
The regulator said TD customers received incorrect cost information over a two-decade period. "The penalty paid reflects that TD Bank was negligent in failing to implement controls and effective compliance monitoring measures to prevent and detect the error for over 20 years," the agency 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 regulator added the amount of the fine also took into account TD Bank's "history of violations." A representative from FCAC was not immediately available to elaborate.
Last year, TD reached a historic settlement with U.S. authorities when it pleaded guilty to multiple charges for failings in its anti-money-laundering controls and agreed to pay $3.09 billion in fines and accepted limits on its growth in the U.S. Also in 2024, TD Bank was hit with a C$9.2 million fine by Canada's financial-intelligence watchdog for compliance failings tied to monitoring and reported suspected money laundering and terrorist financing.
The regulatory shortcomings prompted an earlier-than-planned transition to a new chief executive, Raymond Chun, and other changes to the senior executive ranks and legal team.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
September 29, 2025 14:50 ET (18:50 GMT)
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