‘They’ve been doing this really quietly’: Woman gets a letter from TD bank about its property tax program. Then she gets a credit in her account

If you think your mortgage lender is collecting and paying your property taxes through your account, one woman says you might want to double-check the fine print.

In a video with over 600,000 views, TikToker Knitty (@knittyknits) says she received a letter from her personal banking and mortgage servicer, TD Bank. The letter states that TD would no longer collect and pay her property taxes with her mortgage payments. One of the listed reasons is that there could be a credit on her account.

"I knew that I had been overpaying on my property taxes. So I was like, 'Oh, only for this chunk of time,'" Knitty says.

Shortly after receiving the letter, Knitty says she received a large deposit in her account—way more than she suspected had been overpaid. The transaction was labeled "property tax refund."

Knitty says she was suspicious and decided to email her municipality about the policy change and subsequent refund.

"The response I got back this morning was, 'Oh, you must bank with TD. They've abolished their property tax program. But we can set you up on monthly payments so you don't have to come up with a lump sum,'" she says. They explained that the refund credit was all her payments into 2025.

Is TD Bank discontinuing its property tax collection?

Knitty says she was still curious about why the policy change occurred, so she researched. However, she was unable to find a statement from TD Bank. As of Nov. 23, there is no statement on TD Bank's website. In fact, TD Bank's current website still suggests that property taxes are collected on behalf of customers.

"I assumed that TD Bank would announce that they're doing this. Instead, I found a Facebook post and a couple really random reports saying they've been doing this really quietly since 2024," Knitty says.

Knitty looks at the second page of the letter, which details the policy change: "You will be paying your own property taxes to your municipality. You agree to pay your property taxes as soon as they are due, and then you will send us proof of that payment."

"Way to bury the lede, TD," Knitty says.

The Daily Dot reached out to TD Bank via email for further information about their property tax collection program. In the comments, several homeowners responded to the change.

"Weird.. cuz as a homeowner, you signed a contract with the mortgage company. Contracts can not be changed without both parties agreeing.. I see a class action lawsuit coming..," a commenter says.

"Hmm. I work for a municipality, and TD has not notified us. We should be in the loop since we send them copies of the tax notice," another writes.

Customers think the new practice is 'predatory'

"I'm trying really hard not to wear a conspiracy tin foil hat, but what an effective way to be able to foreclose on people's homes," Knitty suggests. "You've had a system in place for decades. I assume that my bank is paying my property taxes from the money that they collected."

She continues that some homeowners may not read the letter from TD Bank, which could cause them to not pay their property taxes. If property taxes aren't paid, their home could be foreclosed if they can't produce the lump sum payment. Many viewers agree.

"TD could be setting up for foreclosures at will based on violation of the loan terms if anyone pays their taxes but forgets to inform TD with documentation," a viewer suggests.

@knittyknits #greenscreen ♬ original sound - Knitty

However, others aren't convinced that the policy change is an ulterior motive.

"The municipality would be the one that would get to foreclose if you missed paying property tax. That’s why most banks insist on handling it; the government is ahead of them in priority for debt," one explains.

The Daily Dot reached out to Knitty via TikTok direct message and comment.

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