Not So Comfy Chair
I recently read that a Toronto couple may lose their home because some low lifes fraudulently sold their home via identity theft. It gets worse.
Toronto Dominion Bank is keeping the victims on the hook for the $250k mortagage. It's TD position that they are a victim too. So somebody has to pay as they are refusing to wipe out the fraudulent debt. The couple has taken the issue to court.
TD may be perfectly within their rights (legally speaking) to hold this couple responsible. From a customer relations perspective their position is tenuous at best. Was all this negative publicity worth $250k given recent financial results in the 3rd quarter of 2006? What about due diligence by TD in this mess? The optics sure don't look pretty.
A TD spokesperson has stated "Nobody is interested in seeing anyone lose their house." Or is that only if the couple plays nice and pays the mortgage? Sorry but the Protecting our Customers section on their website seems hollow. Remember the millions TD spent on that 'comfy chair' advertising? The chairs at TD Bank don't appear very comfy now.
In fairness to TD, all banks (and companies for that matter) must protect themselves and their shareholders from liability. However, this situation did not need to go to court nor did it require all of the subsequent negative press.
What if TD Bank worked with this couple and said "We'll pick up the tab but would you work with us to warn other TD customers about identity theft? That way we can prevent this from happening again." That would be more productive than simply putting a link on their site to Phonebusters.
Maybe I'm being tough because they are a bank. And because they are such a respected brand I'd expect more from TD. I considered transferring my accounts over to TD when they offered a free iPod earlier this year. It will now take more than that for me to comfortably sit in one of their chairs as a client.
