TD Bank ordered to pay $122 million for overdraft enrollment practices: U.S. agency

TORONTO (Reuters) – TD Bank has been ordered to pay $97 million in restitution and $25 million in civil penalties for charging U.S. consumers fees without consent on its optional overdraft service, the Consumer Financial Protection Bureau said on Thursday.

The U.S. unit of Toronto-Dominion Bank charged consumers overdraft fees for ATM and one-time debit-card transactions without their consent, after claiming it was a free service, violating regulations that govern electronic funds transfers, the agency said in a statement.

TD also failed to establish reasonable written policies regarding consumer-account information it provided to two specialty consumer reporting agencies, the CFPB said.

(Reporting by Nichola Saminather; Editing by Sandra Maler)