Toronto-Dominion Bank paid a $5.5 million penalty after the banking industry regulator found it had not properly provided accurate disclosure to customers about certain mortgages, lines of credit and loans for almost 23 years. 

The violations occurred between September 2001 and February 2024, involved more than 160,000 loan accounts and involve a financial ‘impact’ of more than $12 million. 

The Bank paid the penalty in October 2024, and made reimbursement to affected customers between March and May of 2025 that included redress interest. The Financial Consumer Agency of Canada only published the Notice of Violation in late September 2025. 

Because the bank opted to pay the penalty – similar to a ‘no contest’ plea – FCAC published a summary of proceeding rather than a more detailed decision from the Commissioner that might have offered more description of the offence and investigation. 

The FCAC disclosure noted that the violation related to TD Bank’s calculation of principal and interest amounts following a request to change loan payment frequency. The error worked against customers by extending the amortization for the loans. Extended amortizations have “financial implications that should be made clear to the customer to ensure that they have the information they need to make an informed decision,” the FCAC notice said. 

The penalty reflects that the bank was “negligent in failing to implement controls and effective compliance monitoring measures to prevent and detect the error for more than 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 also considered a factor. 

FCAC has now levied on TD Bank its two largest monetary penalties. In November 2024, TC paid a $6.5 million penalty and pledged $71.7 million in reimbursements because it had not properly credited more than 250,000 customers for credit card fee rebates for more than 22 years.