TD Canada Trust Accused of Criminal Abuses
A CBC News investigation has accused Toronto-Dominion Bank (TD) of sales practices reminiscent of the recent Wells Fargo scandal, although the bank says it does not believe the report.
CBC News reported that the TB Bank employees, under pressure to meet sales goals, were regularly breaking the law to avoid being fired.
CBC News also published a report on the topic, quoting employees admitting illegal practices because they were desperate to earn points to meet their sales goals. "I've increased people's lines of credit by a couple thousand dollars, just to get SR [sales revenue] points," CBC News quoted one teller employed at a TD branch in Windsor, Ontario. The teller said the customer was not told about the credit line increase, which violates Canada's federal Bank Act.
Other tellers detailed how they increased customers’ overdraft protections without telling them, and quietly increased their Visa card limits to meet sales targets. Some said they upgraded customer accounts to those with higher fees without notice. They described how managers hovered over them, pushing them to sell more. The report also quoted customers who noticed additional fees on their statements and who called the practices “dishonest.”
In response, TD told its investors that it “does not believe certain media coverage is an accurate portrayal of our culture, or that it reflects the experience of most of our colleagues.”
The Toronto-based bank said it is taking “the concerns very seriously,” but said it remained skeptical because it has procedures in place “designed to monitor sales practices and to detect issues should they arise.”