TD Bank class action accuses it of failing to honor overdraft grace policy

TD Bank class action lawsuit overview:

• Who: Plaintiff Sandeep Trisal filed a class action lawsuit against TD Bank N.A.
• Why: Trisal claims TD Bank failed to comply with its agreement to personal deposit account holders to refund any overdraft fees assessed to an overdrawn account if the account is brought into a positive available balance within the “grace period” specified by the bank.
• Where: The class action lawsuit was filed in New Jersey federal court.

A new class action lawsuit alleges TD Bank wrongfully charged its customers improper overdraft fees.

Plaintiff Sandeep Trisal claims TD Bank failed to comply with its agreement to personal deposit account holders to refund any overdraft fees assessed to an overdrawn account if the account is brought into a positive available balance within the “grace period” specified by the bank.

Trisal wants to represent a nationwide class of TD Bank personal deposit account holders who had an available balance of -$50.01 or less on any day between Oct. 11, 2022, and the present, had an available account balance of $0.00 or more as of 11:00 p.m. ET on the next business day after the overdrawn day and was assessed and not refunded one or more $35.00 overdraft fee(s) attributable to one or more transaction(s) that was posted to the account on the overdrawn day.

“By assessing $35.00 overdraft fees for overdrafts that were cured within the ‘grace period’ specified in the Deposit Agreement, TD Bank breached its contractual obligations to Plaintiff and members of the proposed Class, damaging them monetarily,” the TD Bank class action lawsuit says.

TD Bank allegedly failed to refund overdraft fees even when account brought into positive balance

TD Bank announced in October 2022 that it had made “additional enhancements to its overdraft policies and services,” including a new policy called “TD Grace Period,” which gave customers until 11:00 p.m. ET the next business day to bring their balance back to $0 or above to avoid overdraft fees.

Trisal claims he overdrew his account by more than $50.00 on multiple occasions but made sufficient deposits to bring his available account balance to at least $0.00 as of 11:00 p.m. ET on the business day after his account became overdrawn. However, TD Bank failed to refund the $35.00 overdraft fees it assessed to his account for these overdrafts, he alleges.

Trisal claims TD Bank’s actions constitute breach of contract. He is seeking actual, compensatory, consequential and punitive damages for himself and the proposed class.

Earlier this year, TD Bank faced a class action lawsuit alleging it improperly charged cash advance fees for transactions that were not cash advances.

What do you think about the allegations made in this TD Bank overdraft fee class action lawsuit? Let us know in the comments.

Trisal is represented by Philip L. Fraietta of Bursor & Fisher P.A. and Frank S. Hedin of Hedin LLP.

The TD Bank class action lawsuit is Trisal v. TD Bank N.A., Case No. 1:25-cv-16196, in the U.S. District Court for the District of New Jersey.

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