The Financial Consumer Agency of Canada published a Summary of Proceeding and announced it applied an administrative monetary penalty of CAD 5.5 million to the Toronto-Dominion Bank (TD) for violating consumer provisions of the Bank Act, with TD having paid the penalty. The breach related to TD failing to provide accurate cost of borrowing disclosure to certain consumers following requests to change loan payment frequency. The issue affected certain mortgage, home equity line of credit, personal loan and small business loan accounts, where an error in calculating principal and interest payment amounts led to inaccurate disclosures. FCAC stated the violation occurred from September 1, 2001 to February 22, 2024 and affected 160,658 loan accounts, with a financial impact of over CAD 12.1 million; TD has reimbursed affected consumers, including a credit for redress interest. FCAC noted that federally regulated financial institutions are expected to review the findings in FCAC decisions and summaries of proceedings and apply them to their own practices, as appropriate.
Financial Consumer Agency of Canada 2025-09-29
Financial Consumer Agency of Canada imposes CAD 5.5 million penalty on Toronto-Dominion Bank for inaccurate cost of borrowing disclosures
The Financial Consumer Agency of Canada imposed a CAD 5.5 million penalty on Toronto-Dominion Bank for violating the Bank Act by failing to provide accurate cost of borrowing disclosures. The breach, affecting 160,658 loan accounts from 2001 to 2024, resulted in a financial impact of over CAD 12.1 million, which TD has reimbursed. FCAC expects federally regulated financial institutions to review and apply the findings to their practices.