TD Bank has faced multiple lawsuits regarding unfair fees, including unauthorized overdraft fees and non-sufficient funds (NSF) fees. In 2024, two key settlements offer financial compensation to affected customers in the United States and Canada. Here’s everything you need to know about the settlements, eligibility, and claim procedures.
Key Settlement Details
1. Overdraft Fee Settlement (U.S.)
- Total Settlement Amount: $32.2 million.
- $21.9 million in cash payouts.
- $10.25 million in debt forgiveness for customers with closed accounts.
- Cause: The lawsuit, Burns v. TD Bank NA, alleged TD Bank charged customers overdraft fees for transactions initially approved when the account had sufficient funds but settled when the balance was negative (APSN fees) .
- Eligibility:
- Must have held a TD Bank personal checking account.
- Must have incurred APSN fees between June 27, 2019, and September 30, 2022.
- Payout Process: Automatic distribution:
- Current Customers: Credits will be applied to accounts.
- Former Customers: Checks will be mailed.
- Timeline:
- The final approval hearing is set for October 15, 2024.
- Payments are expected 60 days after court approval.
2. NSF Fee Settlement (Canada)
- Total Settlement Amount: $15.9 million.
- After deducting legal and administrative fees, approximately $9.74 million will be distributed.
- Cause: TD Bank was accused of charging multiple NSF fees on re-presented pre-authorized debit transactions.
- Eligibility:
- Canadian residents with TD personal deposit accounts.
- NSF fees incurred between February 2, 2019, and November 27, 2023.
- Payout Amount: Estimated at $88 per eligible account.
- Important Dates:
- Opt-out/objection deadline: January 26, 2024.
- Payment distribution: Expected by June 2024.
How to Claim Your Settlement
U.S. Settlement:
No action is required from eligible customers, as TD Bank will automatically identify qualified individuals and process payments using internal records.
Canadian Settlement:
Payments will also be automatic for eligible customers. For those opting out, forms must be submitted before January 26, 2024. Visit the official settlement website or contact the administrator for details.
Settlement Overview Table
| Settlement | Amount | Eligibility | Payout Method | Timeline |
|---|---|---|---|---|
| U.S. Overdraft Fee | $32.2 million | APSN fees on debit transactions (June 2019–Sept 2022). | Automatic (credits or checks). | Payments start ~Dec 2024. |
| Canadian NSF Fee | $15.9 million | NSF fees for pre-authorized debit transactions (Feb 2019–Nov 2023). | Automatic (account credits). | Payments by June 2024. |
FAQs
Why was TD Bank sued?
TD Bank faced lawsuits for allegedly charging unauthorized overdraft fees (APSN fees) in the U.S. and multiple NSF fees in Canada for single transactions.
How much will I receive?
Payouts vary. In Canada, customers may receive $88 per account. U.S. payments depend on the net settlement amount after deductions.
Do I need to submit a claim?
No, eligible customers in both settlements will be identified automatically, and payments will be processed without additional steps.
What are APSN and NSF fees?
- APSN Fees: Overdraft fees charged when a transaction authorized with sufficient funds settles with insufficient funds.
- NSF Fees: Charges for retrying pre-authorized debits that previously failed due to insufficient funds.
Conclusion
The 2024 TD Bank settlements offer relief to customers impacted by unfair fees. Both U.S. and Canadian customers should expect automatic compensation if eligible. Stay informed about key deadlines to ensure you receive your payout without delay.