TD Bank Halts Cash Mortgage, HELOC Payments

If you’re a TD Bank mortgage or Home Equity Line of Credit (HELOC) customer who prefers paying in cash, you may be in for a surprise. Recent customer reports indicate that the bank has quietly implemented a new policy, refusing to accept cash for these specific loan payments at its branches, leaving some long-time customers searching for answers and alternative ways to pay.

The New No-Cash Policy

According to at least one customer, the policy change was abrupt and unexpected. After attempting to make a routine mortgage payment in cash at a local branch, the customer was denied. They reported that the bank tellers handling the situation were "so embarrassed" by the new rule, suggesting the change was a recent, top-down directive. This experience prompted the customer to contact state and federal authorities for clarification on the legality of the bank’s refusal.

While TD Bank has not made a widespread public announcement, this customer experience points to a significant operational shift that directly impacts how people manage their largest debts.

Why Is TD Bank Making This Change?

A policy change this significant is rarely made without a strong underlying reason. While TD Bank hasn't issued a formal explanation, the timing aligns with recent and intense regulatory pressure. The bank has been under scrutiny for its anti-money laundering (AML) controls, recently pleading guilty to conspiracy to commit money laundering. This case resulted in penalties and forfeitures expected to total around $3 billion.

Banks use AML programs to detect and prevent criminal activity, and large cash transactions are often a major focus. By eliminating cash payments for large loans like mortgages and HELOCs, TD Bank can reduce its risk and demonstrate stricter compliance to regulators. This move is part of a broader industry trend away from physical cash and towards traceable, digital transactions.

Your Alternative Payment Options

If you can no longer use cash, TD Bank still provides several other ways to make your mortgage or HELOC payments. It’s important to familiarize yourself with these methods to avoid late fees or disruptions.

• Online or Mobile Banking: The most convenient method is likely through your TD Bank online account or the mobile app, where you can transfer funds from a linked checking or savings account.
• Pay by Phone: You can make a payment by calling TD Bank's loan servicing department directly at 1-888-751-9000.
• ACH Transfer: You can set up payments from an account at another financial institution.
• Check: You can still pay using a traditional paper check, either by mail or in person at a branch.

Can a Bank Legally Refuse Cash?

This is a common question, and the answer often surprises people. According to federal law (31 U.S.C. § 5103), U.S. coins and currency are recognized as "legal tender" for all debts, public charges, taxes, and dues. However, the U.S. Department of the Treasury clarifies that this does not compel a private business or organization to accept cash in every transaction.

Private businesses are generally free to set their own payment policies unless a specific state law says otherwise. When it comes to loans, the most important document is your original mortgage or HELOC agreement. This contract typically outlines the acceptable forms of payment you and the bank agreed to at the outset. This new policy could be problematic if your agreement doesn't explicitly allow the bank to change payment terms in this way. The policy also raises concerns for "unbanked" or "underbanked" individuals who rely heavily on cash for their financial lives.

What Should You Do Next?

If you are a TD Bank customer affected by this no-cash policy, here are some actionable steps you can take:

1. Review Your Loan Agreement: Carefully read your original mortgage or HELOC contract. Look for the section detailing payment terms to see what forms of payment are contractually required to be accepted.
2. Contact TD Bank Directly: If you have concerns, start with customer service at 1-888-751-9000. For a more formal escalation, you can contact the TD Senior Customer Complaints Office via email at td.scco@td.com.
3. File a Formal Complaint: If you are not satisfied with the bank’s response, you can file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB is a federal agency that protects consumers and can formally investigate your issue with the bank.
4. Seek Professional Guidance: For advice on your specific situation, consider speaking with a HUD-approved housing counselor. These counselors provide free or low-cost guidance on mortgage and housing issues. If you believe the policy violates your loan agreement, you may also want to consult with a consumer law attorney.