Summary of proceeding #2

On July 11, 2024, the Toronto-Dominion Bank (TD or Bank) paid the $6.5 M penalty proposed in the Notice of Violation dated June 13, 2024. As a result, the Bank is deemed to have committed a violation of the Cost of Borrowing (Banks) Regulations from September 1, 2001 to June 29, 2022 and of the Financial Consumer Protection Framework Regulations from June 30, 2022 to October 5, 2023. During the September 1, 2001 to October 5, 2023 period, an estimated 255,886 customers were affected, representing an approximate financial impact of $71,723,694.49. TD is reimbursing affected customers and a contribution to charity will be made for the customers that cannot be identified.

The violation relates to an error in the Bank’s monthly credit card statements caused by employees not properly entering the credit card annual fee rebate due to inadequate procedures. This resulted in consumers not being credited the rebate entitled.

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 for over 20 years. 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 Bank’s history of violations was considered.