TD Bank $15.5M Settlement for Unauthorized Overdraft Fees

If you held a business checking account with TD Bank, N.A. and were charged APSN Overdraft Fees or Retry Fees between February 23, 2016, and September 30, 2022, you may be eligible to claim a monetary award from a class action settlement.

TD Bank has agreed to pay $15,500,000 to settle a class action lawsuit for alleged unauthorized assessment and collection of certain Overdraft Fees and NSF Fees.

Can I Claim an Award?

To be eligible for an award, you must be a current or former holder of a TD Bank business checking account who incurred an APSN Fee or Retry Fee between February 23, 2016, and September 30, 2022.

An APSN Fee is an Overdraft Fee assessed by TD Bank for debit transactions authorized when the account's Available Balance was positive but later paid when the balance was insufficient.

A Retry Fee is an Overdraft Fee or NSF Fee assessed on a debit transaction returned unpaid by TD Bank due to insufficient funds and subsequently resubmitted by a merchant or other third party for payment and returned unpaid or paid into overdraft.

If you received a postcard or email notice of the settlement, the parties believe you are in the Settlement Classes. Even if you did not receive a notice, you may still be a member of the Settlement Classes if you meet the criteria mentioned above.

What Awards Can Class Members Claim?

TD Bank has agreed to provide $10,500,000 to the Settlement Classes, which includes money for payments to Settlement Class Members, attorneys' fees and expenses, settlement administration costs, and Service Awards to the named Plaintiffs.

Additionally, TD Bank will provide an additional $5,000,000 in the form of reductions to the outstanding balances of Participating Settlement Class Members who were charged APSN or Retry Fees and whose accounts were closed with amounts owed to TD Bank.

The balance of the Net Settlement Fund after attorneys' fees, Service Awards, and administrative costs will be divided among all Participating Settlement Class Members. Current customers of TD Bank will receive a credit to their accounts, while former customers will receive a check from the Settlement Administrator.

Is Proof Required to Claim the Reward?

Not applicable. The Settlement Administrator already has the necessary information to identify eligible class members.

How to Claim Your Award

To claim your award, you do not need to take any action if you received a notice and do not opt out of the settlement. If you did not receive a notice but believe you are eligible, you may contact the Settlement Administrator.

How do I Get Paid?

Current customers will receive a credit to their accounts, while former customers will receive a check from the Settlement Administrator.

Important Dates

• Deadline to Opt Out of the Settlement: September 14, 2024
• Final Approval Hearing: October 10, 2024

When is the TD Bank Settlement Payout Date?

Payments are expected to be made within about 60 days after the Settlement is approved, provided there are no appeals.

Why is There a Class Action Settlement?

The lawsuit claims that TD Bank breached its contracts with business checking accountholders by assessing and collecting certain Overdraft Fees and NSF Fees not authorized by the account agreement. TD Bank denies any wrongdoing but has agreed to settle to avoid the costs and uncertainty of litigation.

What Happens Next?

The Court will hold a Final Approval Hearing on October 10, 2024, to decide whether to approve the Settlement. If approved, payments will be distributed to eligible class members within about 60 days.