TD Bank Inaccurately Reported Monthly Payments on Closed Account, Class Action Alleges

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A California consumer alleges in a proposed class action that TD Bank US Holding Company erroneously communicated to credit reporting agencies that he owed monthly payments on a closed account.

According to the lawsuit, TD Bank continued to report that the plaintiff owed monthly credit card payments of $157 on an account that was paid off and closed as of December 2013. As a “sophisticated lender,” TD Bank, the suit argues, knew or should have known that its reporting practices were inaccurate.

The case also claims the defendant’s false reporting damaged the plaintiff’s creditworthiness since lenders take existing financial obligations into consideration before extending credit to consumers. From the complaint:

“Plaintiff’s right to be able to apply for credit based on accurate information has been violated, placing Plaintiff at increased risk of not being able to obtain valuable credit and adversely affecting Plaintiff’s credit rating.”