TD Bank Class Action Says Coin-Counting Machines Defective

TD Bank faces a proposed class action lawsuit in Florida over claims that its Penny Arcades, which are the coin-counting machines the bank provides for both customers and non-customers, are inaccurate and cause users to lose out on the full value of their money.

According to the complaint, which brings forth claims of unfair trade practices and breach of contract, Penny Arcades weren’t originally meant to be used for commercial coin counting. Initially, they were intended to be used by children to give them an incentive to count their change and save their money. The lawsuit states that despite the machine’s original purpose, Penny Arcades are represented as a reliable method of coin counting by TD Bank.

“TD Bank’s practice of offering the Penny Arcade as an accurate coin-counting service is deceptive because a reasonable person would likely be misled into believing that the machines correctly count coins,“ the complaint says. “Moreover, TD Bank failed to disclose material information concerning the Penny Arcades, which they knew at the time of consumers’ use. TD Bank withheld the fact that the Penny Arcades were malfunctioning.”

Penny Arcades are coin-counting machines designed and used exclusively by TD Bank as a service that is available to both customers and non-customers of the bank, however there is an eight percent usage fee for non-customers. Users simply drop their coins into the Penny Arcade and take the receipt to a teller for cash or a deposit into a TD Bank account.

Despite, TD Bank’s claim that it tests Penny Arcades at least two times a day, NBC’s Today Show aired a segment on Apr. 6, 2016, on coin-counting machine accuracy, which revealed that four Penny Arcades in the New York City area were tested and there were shortages at every machine, up to 15 percent.

TD Bank reportedly took its Penny Arcades out of service the day before the segment aired so it could test its methodology and increase the machines’ accuracy.

TD Bank said in a statement earlier this week that the machines will be brought back into service once the bank is satisfied that they meet performance requirements. The bank also said it will be enhancing routine maintenance and testing.

“We are disappointed with the experience that the ‘Today’ show had with our Penny Arcade coin-counting machines,” the bank said. “At TD Bank, we place a premium on the integrity of these machines, and that’s why we clean and test them twice daily to confirm accuracy.”

Plaintiff Juan Carlos Macias, a Florida resident, filed the class action lawsuit after he allegedly used TD Bank’s Penny Arcade last month in Miami and was shortchanged.

Macias brought the action on behalf of a nationwide customer Class who used TD Bank’s Penny Arcade coin-counting services as a customers of TD Bank anytime during the last four years, as well as a Florida subclass. According to the complaint, while the exact number of Class Members cannot be ascertained, it is estimated that tens of thousands of TD customers nationwide were affected by the allegedly defective machines.

The plaintiff is suing TD Bank on multiple counts including Violation of Florida’s Deceptive & Unfair Trade Practices Act, unjust enrichment, and breach of implied-in-fact contract.

The proposed class action seeks compensatory, actual and other damages; attorneys’ fees and costs and prejudgment and post-judgment interest.

Macias is represented by Michael E. Criden, Kevin B. Love and Lindsey C. Grossman of Criden & Love PA, and Alexander Angueira of Alexander Angueira PLLC.

The TD Bank Penny Arcades Class Action Lawsuit is Juan Carlos Macias, et al. v. TD Bank NA, Case No. 1:16-cv-21298, in the U.S. District Court for the Southern District of Florida.

UPDATE: The TD Bank Penny Arcade class action settlement is now open. Click here to file a claim.