If you’re a TD Bank customer, you may be entitled to a portion of the $15.9 million settlement arising from a class action lawsuit.
The lawsuit involves claims that TD Bank improperly charged non-sufficient funds (NSF) fees on multiple occasions for the same transaction, which affected many account holders.
Here’s everything you need to know about the TD Bank Class Action Settlement for 2024, including eligibility, payout amounts, and key dates.
What Is the TD Bank Class Action Settlement?
The TD Bank Class Action stems from a complaint filed against TD Bank in 2021. The complaint alleges that the bank charged multiple NSF fees on the same check or pre-authorized payment without properly notifying customers.
These NSF fees are typically charged when a customer’s account does not have enough money to cover a payment, and the lawsuit claims TD Bank unfairly applied these fees more than once for a single transaction.
While TD Bank has denied any wrongdoing, they have agreed to a $15.9 million settlement to resolve the issue. The Ontario Superior Court of Justice granted the lawsuit class-action status in December 2022, and a potential settlement was proposed shortly after.
Settlement Details
- Settlement Amount: $15.9 million
- Class Action Hearing Date: February 13, 2024
- Law Firm: Koskie Minsky LLP
- Settlement Amount per Customer: Approximately $88
- Eligibility Period: Customers charged NSF fees between February 2, 2019, and November 27, 2023
Eligibility for the $88 Settlement
Not all TD Bank customers are eligible for the $88 payout. To qualify for a portion of the settlement, you must meet the following criteria:
Who Is Eligible?
- Canadian Residents: You must be a Canadian resident who either currently holds or previously held a personal deposit account with TD Bank.
- Charged NSF Fees: You must have been charged non-sufficient funds (NSF) fees on pre-authorized debit transactions between February 2, 2019, and November 27, 2023.
- Active Accounts: To receive the settlement payment, you must still have an active TD Bank account during the distribution period, or you must have had an account that was subject to the NSF fees within the eligible timeframe.
What Was the Issue?
According to the lawsuit, customers were charged multiple $48 NSF fees for a single payment without adequate warning.
The bank allegedly imposed these fees each time a payment attempt was made, even if the funds were not available, which led to unfair charges for many customers.
How Much Will Each Customer Receive?
If the court approves the settlement on February 13, 2024, each eligible customer will receive approximately $88.
This amount will be deposited directly into the bank accounts of qualifying customers. The exact amount could vary depending on the total number of eligible participants.
The distribution process will begin shortly after court approval, and TD Bank will handle the automatic deposits, meaning no additional action is needed for eligible customers.
Key Dates and How to Apply
- Settlement Hearing: The Ontario Superior Court of Justice will hold a hearing on February 13, 2024, to determine whether the $15.9 million settlement is fair and should be approved.
- Opting Out: If you wish to continue participating in the class action or challenge the settlement, you must act before January 26, 2024.
- Automatic Payments: If the settlement is approved, payments will be automatically deposited into the bank accounts of eligible customers, likely by February 2024.
How to Check Your Status
For those unsure if they qualify for the settlement, you can contact the law firm Koskie Minsky LLP via email at [email protected] or visit the official class action website to verify your status.
You can also review your past bank statements to check if you were charged any NSF fees during the eligibility period.
The TD Bank Class Action Settlement could provide eligible customers with $88 as compensation for improperly charged NSF fees.
While TD Bank has not admitted to any wrongdoing, this settlement is a significant outcome for affected customers who faced multiple NSF fees for the same transaction. If you’re eligible, keep an eye on your bank account in early 2024 for the settlement payout.
FAQs
Who is eligible for the $88 payout?
Canadian TD Bank customers charged NSF fees on pre-authorized debit transactions between February 2, 2019, and November 27, 2023.
When will the $88 settlement payment be made?
If approved, payments will be deposited into customers’ accounts shortly after the settlement hearing on February 13, 2024.
Do I need to apply for the settlement?
No, if you are eligible and have filed your previous year’s returns, the payment will be made automatically.
What is the total settlement amount?
The total settlement amount is $15.9 million.
Can I challenge the settlement?
Yes, you can opt out or continue participating in the class action if you submit your request by January 26, 2024.
