In 2024, TD Bank customers might find themselves eligible for a share of a $15.9 million settlement.
This stems from a class action lawsuit that has been ongoing, where TD Bank was accused of improperly charging multiple non-sufficient funds (NSF) fees without giving proper notice to its customers.
Although TD Bank has denied any wrongdoing, they have agreed to settle the lawsuit, potentially impacting thousands of customers.
Background
The class action lawsuit was initiated against Toronto Dominion Bank (TD Bank) in 2021, following claims that the bank was unlawfully imposing multiple NSF fees on single checks or payments.
These fees were levied when a customer’s account lacked sufficient funds to cover a payment, resulting in a penalty.
The lawsuit claims that customers were often charged multiple NSF fees for the same transaction, something that was not properly communicated to them. As a result, TD Bank has agreed to settle the dispute with Koskie Minsky LLP for $15.9 million, pending court approval.
Key Details
The class action settlement is scheduled for a hearing on February 13, 2024. During this hearing, the Ontario Superior Court of Justice will determine whether the proposed settlement is fair and adequately serves the interests of all parties involved.
If the settlement is approved, eligible customers could receive a payout of approximately $88 each, directly deposited into their TD Bank accounts. However, eligibility depends on specific criteria, and not all customers will qualify for this payment.
Who is Eligible?
To be eligible for the $88 payout, you must meet the following conditions:
- You must be a Canadian resident.
- You either currently hold or have previously held a personal deposit account at TD Bank.
- You were charged NSF fees on pre-authorized debit transactions between February 2, 2019, and November 27, 2023.
Only customers who still have an open account during the settlement distribution and who were charged NSF fees within the specified period will receive compensation.
Settlement Distribution
The court will review the proposed settlement on February 13, 2024. If it is approved, TD Bank will transfer the settlement funds directly into the bank accounts of eligible customers. No further action is required from customers who qualify, making the process straightforward for those impacted.
For those who disagree with the settlement terms or wish to remain part of the ongoing class action, they must express their dissent by January 26, 2024.
Potential Impact
The TD Bank class action settlement serves as a reminder of the importance of transparency and fair practices in banking. For affected customers, this settlement represents a form of restitution for the fees they were charged without sufficient notice.
If you believe you might be eligible for the settlement, it’s worth keeping an eye on your TD Bank account in the coming months to see if you receive the $88 payout.
The final decision will depend on the court’s ruling in February, but for now, many TD Bank customers have reason to hope for a small financial windfall.
FAQs
Who qualifies for the TD Bank settlement?
Canadian residents charged NSF fees by TD Bank from 2019 to 2023.
How much is the settlement payout?
Eligible customers could receive around $88 each.
When is the settlement hearing?
The hearing is scheduled for February 13, 2024.
What should I do to get the payout?
If eligible, the payment will be automatically deposited.
Can I object to the settlement?
Yes, objections must be submitted by January 26, 2024.
