Consumer complaint received 2024-11-01
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: TD BANK US HOLDING COMPANY (PA)

Account # : XXXX TD Bank is illegally reporting negative items on my consumer report, specifically late payments. TD Bank has been and is currently treating payments on my credit card account under my open end consumer credit plan as late without utilizing reasonable procedures designed to ensure that each periodic statement including the information required by 15 U.S.C. 1637 of the Truth In Lending Act ( TILA ) was delivered to me before the payment due date. Also, TD Bank has failed to meet additional requirements contained in the regulations prescribed by the Consumer Financial Protection Bureau ( CFPB ) which are designed to carry out the purposes of the TILA.

15 U.S.C. 1637 ( i ) mandates that a creditor must provide written notice of any significant change in terms, as defined by the CFPBs rules, at least 45 days before the change takes effect. 12 CFR 1026.9 ( c ) ( 2 ) ( ii ) specifies that a " significant change in account terms '' includes an increase in the required minimum periodic payment. Accordingly, 12 CFR 1026.9 ( c ) ( 2 ) ( i ) ( A ) requires a creditor to deliver written notice of such changes at least 45 days prior to the effective date to each affected consumer. Further, 12 CFR 1026.9 ( c ) ( 2 ) ( iv ) mandates that this advance notice must include specific information, including but not limited to, the amount of any increase in the required minimum periodic payment, a statement that account terms are being changed, the effective date of these changes, and adherence to prescribed format requirements for such notices. 

As of today, TD Bank has reported my account as 150 days past due as of XX/XX/year> and charged it off in XX/XX/year>, resulting in five late payments followed by a charge-off on my consumer report. Due to TD Bank 's adverse action in charging off my account, I can no longer access my online billing statements, which I would otherwise provide as proof. Therefore, in this complaint, I am requesting that the CFPB obtain documentary evidence demonstrating that TD Bank fulfilled its obligation to provide me with the required written advance notice for each significant change in my account terms and that I received each notice at least 45 days prior to its effective date, which they did not do. 

The CFPBs guidelines confirm that TD Bank was obligated to provide a written advance notice for each of these significant changes at least 45 days prior to their effective dates. Failure to do so constitutes a violation of 15 U.S.C. 1637 ( i ) of TILA, and does not comply with the notice requirements in 12 CFR 1026.9 ( c ) ( 2 ) ( i ) designed to protect consumers. 

Legal implications arise from XXXX 's non-compliance with TILAs requirements, potentially triggering both civil and criminal liability. Under 15 U.S.C. 1611, any willful and knowing violation of TILA, including failure to provide accurate disclosures as required, shall result in a fine of up to {$5000.00} and/or imprisonment for up to one year. Additionally, 15 U.S.C. 1640 establishes that a creditor who fails to comply with any requirement imposed under TILA is liable for actual damages incurred by the consumer, twice the amount of any finance charge related to the violation, as well as the costs of a successful legal action, including reasonable attorneys fees. 

These ongoing violations not only erode the regulatory framework established by the Truth in Lending Act but also significantly harm my financial health. TD Banks failure to deliver the mandated 45-day notices for significant changes in my account terms has led to the inaccurate and unjust reporting of late payments, ultimately damaging my creditworthiness and restricting my access to equitable financial opportunities. By neglecting their duty to implement reasonable procedures and timely notifications, TD Bank has undermined the protections that Congress intended to shield consumers from such financial harm and instability. 

This pattern of non-compliance poses serious risks to consumers and threatens the integrity of fair credit practices. The Truth in Lending Act requires these disclosures to prevent unjust financial consequences and to ensure that consumers are not misled or unfairly penalized. I urge the Consumer Financial Protection Bureau to fulfill its responsibility to enforce these critical protections. Immediate action is essential to hold TD Bank accountable, remedy this harm, and ensure complete compliance with TILA.