TD Bank cash advance fees draw class action lawsuit over ‘improper’ charges

TD Bank class action overview:

• Who: Plaintiff Alexander Chiew filed a class action lawsuit against TD Bank.
• Why: Chiew claims the bank improperly charges cash advance fees for transactions that are not cash advances.
• Where: The TD Bank class action was filed in New York federal court.

A new class action lawsuit claims that TD Bank wrongly applies cash advance fees to transactions that do not qualify as cash advances.

Plaintiff Alexander Chiew filed the class action complaint against TD Bank on Oct. 29 in New York federal court, alleging violations of state and federal consumer laws.

In his lawsuit, Chiew alleges that TD Bank imposes cash advance fees on credit card purchases that don’t qualify as cash advances, misleading cardholders and violating its agreement with customers.

Chiew says he was charged a cash advance fee and immediately started accruing interest for a jewelry purchase made using the Wise peer-to-peer money transfer app.

The class action lawsuit claims TD Bank’s credit card agreement allows cash advance fees only for transactions like ATM withdrawals or cash-like transactions, such as travelers’ checks or foreign currency.

TD Bank cash advance fees are ‘deceptive,’ class action argues

Chiew argues that the bank’s practice of categorizing non-cash transactions as cash advances is deceptive and contrary to industry standards.

The TD Bank class action lawsuit alleges that other major banks, including American Express and Discover, do not treat such transactions as cash advances, while some banks clearly inform cardholders about what constitutes a cash-like transaction.

TD Bank’s failure to disclose its policy on cash advance fees for non-cash transactions is misleading, the TD Bank cash advance class action lawsuit claims.

Chiew seeks to represent a class of TD Bank cardholders who were charged cash advance fees on transactions not considered cash-like.

The lawsuit seeks damages, restitution and injunctive relief to stop TD Bank from continuing the alleged deceptive practice.

Chiew is suing for breach of contract and violations of New York and New Jersey consumer protection laws.

In 2024, TD Bank agreed to a $32.2 million settlement to resolve claims the bank charged illegal overdraft fees.

Have you ever been charged a cash advance fee by TD Bank? Let us know in the comments.

The plaintiff is represented by Andrew J. Shamis and Edwin E. Elliott of Shamis & Gentile P.A. and Sophia Goren Gold and Jeffrey D. Kaliel of KalielGold PLLC.

The TD Bank cash advance class action lawsuit is Chiew v. TD Bank N.A., Case No. 1:24-cv-07566, in the U.S. District Court for the Eastern District of New York.

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