A class-action lawsuit has been filed against TD Bank accusing it of charging non-sufficient fund fees (NSF Fees) after retrying transactions. The bank has agreed to pay more than $41 million to resolve all claims. TD Bank is a North American bank serving consumers across Canada and the United States. It offers credit cards, checking accounts, savings accounts, investment services, borrowing options, and other services.
A 2019 amended class action lawsuit has blamed TD bank for charging unfair NSF fees. These fees are usually charged by the bank on failed transactions on attempting them for a second time. The fees range between $30 and $35 and can add up quickly on the charging of multiple NSF fees. The plaintiff of this class action lawsuit Mary P. attempted to make two small PayPal transactions under $5 on 25th May 2018 which got denied due to insufficient funds and she was charged an NSF fee of $35 for each attempt.
TD Bank allegedly tried clearing the transaction again later on all though the plaintiff didn’t attempt to initiate the same. The bank charged an incremental fee of $35 when this second unauthorized attempt failed. This situation was repeated after a few months. The class-action lawsuit stated that these retry NSF fees violated the bank’s account agreements. The defendant’s action violated the Deposit Agreement signed by Mary when she opened her account. Mary’s bank made $70 from a single transaction that it had resubmitted without her authorization or knowledge.
As per the plaintiff, numerous other TD Banks might have experienced similar unfair NSF fees. Although TD Bank has not admitted to any wrongdoing, it has agreed to resolve the issue with a $41.5 million settlement. Out of this settlement pool, $20.75 million has been earmarked for cash payments while $20.75 million will go towards debt relief benefits. Cash payment will be made to the class members under the terms of the TD Bank settlement to compensate them for retry NSF fees paid by them.
Though the payments won’t be a complete refund, it shall be proportional to reflect the amount charged from each Class Member who was charged a retry NSF fee. Class Members from whom numerous fees were charged shall receive a higher pay compared to the Class Members from whom only one fee was charged. Under the terms of the settlement, debt forgiveness shall be provided to Class Members whose accounts were closed with a negative balance. Any debt owed to TD Bank shall be reduced for each retry NSF fee that was owed by a Class Member to the bank but did not pay before account closure. The debt reduction will vary depending on the amount paid in fees just like the settlement’s cash payments. All eligible consumers will receive payment from the fund unless they exclude themselves. Class Members will not have to take any action for reaping the benefits of this settlement.
Eligibility for Making Claim: Class member includes consumers from whom retry NSF fees were charged by TD Bank over different periods between 30th November 2008 to 7th September 2021. The period of eligibility varies between states depending on the applicable laws. The Illinois class period for example starts on 20th November 2008 whereas the Colorado class period initiates on 30th November 2015. You can go through the complete list of each state’s class periods from the settlement agreement.
Settlement Wesbite: RetryNSFFeesSettlement.com
Proof of Purchase: NA
Potential Claim Amount: Variable
Objection Deadline: March 16, 2022
Exclusion Deadline: March 16, 2022
Claim Form: No claim form is required.
Deadline For Submitting Claim: N/A
Final Hearing Date: 05/03/2022
Settlement Amount: $41.5 million