Consumer complaint received 2021-07-27
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: TD BANK US HOLDING COMPANY (CT)

On the CFPBs website ( https : //www.consumerfinance.gov/compliance/compliance-resources/deposit-accounts-resources/electronic-fund-transfers/electronic-fund-transfers-faqs/ # electronic-fund-transfers ) under Electronic Fund Transfer FAQs it states the following : 1. If a third party fraudulently induces a consumer into sharing account access information that is used to initiate an electronic account fund transfer from the consumers account, does the transfer meet Regulation Es definition of unauthorized electronic fund transfer?

Yes. Regulation E defines an unauthorized electronic fund transfer ( EFT ) as an EFT from a consumers account initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit. 12 CFR 1005.2 ( m ) .Comment 1005.2 ( m ) -3 explains further that an unauthorized EFT includes a transfer initiated by a person who obtained the access device from the consumer through fraud or robbery. Similarly, when a consumer is fraudulently induced into sharing account access information with a third party, and a third party uses that information to make an EFT from the consumers account, the transfer is an unauthorized EFT under Regulation E.

For example, the Bureau is aware of the
following situations where a third party has fraudulently obtained a consumers account access information : ( 1 ) a third party calling the consumer and pretending to be a representative from the consumers financial institution and then tricking the consumer into providing their account login information, texted account confirmation code, debit card number, or other information that could be used to initiate an EFT out of the consumers account, and ( 2 ) a third party using phishing or other methods to gain access to a consumers computer and observe the consumer entering account login information.EFTs stemming from these situations meet the Regulation E definition of unauthorized EFTs. 

Updated XX/XX/2021 The exact scenario described above, in ( 1 ) of the second paragraph, is what happened to me. Despite this, TD Bank has twice reviewed and denied my Regulation E dispute claim. 

On Monday, XX/XX/2021 while driving back to Washington DC from XXXX XXXX XXXX XXXX  I received multiple calls from a number with the caller ID, TD Bank. In the car with me were my father ( age XXXX ) and younger brother ( age XXXX ). 

At XXXX XXXX, I finally picked up the phone and was greeted by a woman who claimed to be a member of TD Banks Fraud Department. This woman gave me her name and then earned my trust by calmly telling me that a fraudulent charge had been made on my account ( a {$650.00} purchase on XXXX ), that she would help me deal with it, and that in order to ensure she was speaking to the correct person, she needed me to confirm the following information, information she then provided me with that I believed only my bank would have, namely my name, address, and bank account number on file, as well as my recent transaction history - including dates and amounts. 

Once I had confirmed my identity, the woman then informed me she was going to secure my account by logging me out and changing my log-in information. She told me I was going to receive prompts from TD Bank on the phone and that I needed to confirm the numbers I received with her. 

After doing this, the woman then told me hackers had likely gotten my information from XXXX and had me go on XXXX and disable my debit card from my XXXX account. After this, she told me she saw Zelle payments pending from my TD Bank account and informed me that I would soon receive texts which I needed to approve in order for TD Bank to authorize repayment to my account. Once I had approved of these texts, she then informed me she was going to issue me a new debit card. 

It was at this point, at approximately XXXX XXXX, I received a flood of emails ( the data service on the road I was driving was poor ) which included emails about XXXX charges stemming from my account ( as opposed to coming into my account ) and an email from Card Verification Services about a new card being added to my digital wallet. At this point, I became immediately suspicious of the woman on the phone and used my brothers phone to call TD Banks customer service line myself. While waiting for TD Bank to answer, I recorded my conversation with the woman on the phone with my fathers phone ( I am attaching that recording below as a voice note - as you'll hear, she claimed TD Bank was attaching a new card to my mobile wallet so that I'd have access to a debit card while I waited for a new one to come in the mail ). 
Once TD Banks customer service line put me in touch with a representative, I apprised the representative of the situation. The TD Bank representative immediately froze my account and told me to hang up, which I did. The TD Bank representative then looked at my account and told me that because the XXXX charges from my account were still pending, there was nothing to be done and the best thing for me to do would be to go to a TD Bank branch office the next day ( once the charges had finalized ), explain what happened, and file a dispute. She informed me that this was quite common and that I would be reimbursed in 8-10 business days. 

On XX/XX/XXXX, the following day, I walked into the TD Bank branch office on XXXX XXXX XXXX XXXX in Washington  DC, explained everything that had happened, filed a dispute, and created a new checking account as my old one was frozen. 

I provided TD Bank with the voice note of my conversation as well as screenshots of emails that showed my TD Bank online banking password had been changed on XX/XX/XXXX at XXXX XXXX, an account called Td Refund had been added to my TD Bank account at XXXX XXXX, a payment of {$400.00} was sent to Td Refund from my TD Bank account at XXXX XXXX, a second payment of {$400.00} was sent to Td Refund from my TD Bank account at XXXX, a third payment of {$200.00} was sent to Td Refund from my Bank Account at XXXX XXXX, a fourth payment of {$400.00} ( for a total of {$1400.00} ) was sent to Td Refund from my TD Bank account at XXXX XXXX, and that I had received an email from Card Verification Services alerting me to a new TD Bank payment account to my digital/mobile device at XXXX XXXX. I will be attaching all these screenshots as well as a screenshot of my phone at XXXX XXXX  at exactly this time I was on the phone with someone whose caller ID was TD Bank - confirming that aspect of my story ( I will also be including a picture of that screenshot that shows the time because the original screenshot automatically crops it out ). 

After speaking with a representative at the TD Bank office I waited. On XX/XX/XXXX, I called the branch office and asked for an update. I was informed that my dispute had been denied because TD Banks records showed I had authorized the transactions. The representative told me thats all she knew but that I should re-file my dispute as the original form she was able to submit wasnt long and didnt include all the details I had provided her. I proceeded to give her all the information I could and asked to file another dispute. 

That night, I did my own research on Regulation E and discovered the information I noted at the beginning of this, in which the CFPBs website explicitly states that EFTs stemming from situations such as the one I was party to meet Regulation E definition of unauthorized EFTs.

With this new information, I called TD Bank on XX/XX/XXXX ( the following Monday ) and asked to speak directly with the Dispute Department. Once connected with the department, I spoke to a woman who told me the only dispute she found under my name had been dealt with and that I had been denied. She then asked if I wished to file another dispute for this same incidence and I said I did and provided her with all the information I had initially provided the branch office. After informing her of the information I had found on the CFPBs website, she told me that in order for me to include that information in my dispute I would need to print it out and fax it to the dispute department. On XX/XX/XXXX, the following day, I went back to the branch office in Washington  DC, had a representative print out the information directly from the CFPBs website and fax said information to TD Banks Dispute department. 

On XX/XX/XXXX, I called TD Bank for an update on this second dispute. After eventually reaching a representative in the Dispute Department I was informed that I had been denied a second time. While on the phone with this representative, I explained what had happened to me and directed him to the CFPBs website. After reading the information I listed above, this representative told me that he agreed that I should be covered but that TD Bank follows Visas Internal Policies and that under those policies I was being denied. He then told me to wait to receive the letter in the mail from TD Bank to see if that letter held additional information.

Last week, I finally received that letter (
I had to have it forwarded to me as Im currently traveling ) which again denied my Regulation E dispute claim. As to TD Banks reasons, the letter states the following : Please be advised that your claim is denied for reasons including that our records show that the transactions were authorized by the account holder. 

Very simply, a third party called me pretending to be a representative from TD Bank and then tricked me into providing texted account confirmation codes which the third party then used to initiate EFTs out of my account. According to the CFPBs own website, these transactions are unauthorized EFTs and are covered by Regulation E. TD Bank claiming otherwise is unacceptable.