TD Bank says it is reviewing "all of the concerns raised".
“TD is in the trust business. we must get our customers' trust before we earn their business," said TD CEO Bharat Masrani in a release issued late Sunday.
TD employees spoke out about feeling "incredible pressure" to meet "unrealistic" sales targets by signing customers up for not needed financial products.
Hundreds of current and former TD employees wrote to Go Public to share their experiences. some of those employees felt they had to break the law to meet sales targets and keep their jobs. Some TD workers said the stressful work led to psychological problems like anxiety and depression.
TD said the bank has "procedures in place designed to monitor sales practices and to find issues should they arise," including a system for tracking customer complaints.
"For the 12-month period ended Jan. 31, 2017, of the many interactions with our millions of Canadian banking customers, we get only a few hundred such complaints related to sales practices compliance. These were investigated and cautioned in accordance with our procedures," said the press relieve.
We take the connection and have received in this area very importantly. We will review all of the concerns raised and devoted to doing the right thing.
TD's Canadian share price fell by 1.45 per cent.
TD shares hurt their worst day since 2009, closing down 5.5 percent.
Stock analysts at National Bank, RBC Capital Markets, and Eight Capital have to make lightened their outlook for TD's performance.
Wells Fargo was fined $185 million US and fired thousands of employees after it was discovered that the bank was building millions of false accounts on behalf of unsuspecting customers.
The comparison between TD and Wells Fargo is "an extent," wrote BMO Capital markets stock analyst Sohrab Movahedi in a note to clients.
"We are inclined to put this situation in the worried but not be afraid' category for now," wrote Movahedi. "The market's rush to a verdict.
U.S.-based Rosen Law Firm proclaimed Friday that it was preparing a class-action lawsuit on behalf of TD Bank investors who losses amid Friday's share slump.
Customer trust is most important in the banking industry, said Ian Lee, associate professor School of Business at Carleton University. To rebuild that trust, Lee said, TD should launch an independent disquisition to determine whether the sales practices uncovered were systemic in nature, or whether they violated the bank's own rules.
"And then they've got to say that, 'Look, we're going to fix this, no matter the cost,'" said Lee.
The Ombudsman for Banking Services, Investments, a third-party organization that solves controversy between banks, investment firms, and their customers, says consumers should know they can make a grievance to their banks. They can also contact external grievance bodies, including OBSI and the Financial Consumer Agency of Canada.
"These assertions raise serious concerns. Before we have seen an increase in banking complaints over the past few years, they have not connected specifically to the sales practices being described," Sarah Bradley, ombudsman and CEO of OBSI told. "If a consumer has experienced unauthorized bargains or has similar concerns, they should file a complaint with their financial institution."