TD Bank class action claims co. charges fees for attempted deposits

TD Bank class action lawsuit overview:

• Who: Plaintiff Christine Manougian filed a class action lawsuit against TD Bank North America.
• Why: TD Bank allegedly unfairly assesses fees on account holders who attempt to make a deposit that fails.
• Where: The TD Bank class action lawsuit was filed in New York federal court.

A new TD Bank class action lawsuit claims the bank routinely charges fees when customers unsuccessfully attempt to make a deposit without notifying them of this potential charge.

Plaintiff Christine Manougian, a TD Bank account holder, says the bank never informed her it would charge “Cashed or Deposited Item Returned” fees when they attempt to make a deposit that fails.

Unlike check writers who generally have knowledge of the amount of money in their bank accounts, check recipients typically have no way to know whether the check they attempt to deposit will bounce.

“Because the depositor could not have reasonably known the check was bad, it is unfair to charge the depositor a fee for returning the check,” the TD Bank class action lawsuit says.

However, TD Bank fees are routinely imposed when account holders attempt a check that bounces, Manougian alleges.

TD Bank fees are predatory and unfairly penalize customers, plaintiff says

Manougian claims she tried to deposit a check into her TD Bank account in March 2022 and had no reason to believe it would bounce. She says she was never provided provisional credit for the amount of the deposit and did not use any part of the attempted deposit.

The check she tried to deposit was returned unpaid and she was assessed a TD Bank fee of $15.

In May 2022, she says she experienced a similar situation and was assessed another $15 TD Bank fee.

Manougian suggests these TD Bank fees are predatory and “nothing more than veiled revenue-generating tools that penalize innocent depositors for the actions of others.” 

She points to a bulletin from the Consumer Finance Protection Bureau expressing concerns about deceptive practices regarding deposited item returned fees when the fees are disproportionate to the bank’s incurred costs to process the bad check or where banking customers are not adequately informed about these fees. The agency reportedly suggested it would impose stricter oversight of such fees.

The TD Bank class action lawsuit asserts claims for breach of contract, implied covenant of good faith and fair dealing, unjust enrichment and violation of New York’s Consumer Protection Statute.

Recently, a federal judge preliminarily approved a $32 million TD Bank class action settlement over allegations it unlawfully collected overdraft fees.

Have you been charged TD Bank fees when you tried to deposit a bad check? Tell us about your experience in the comments.

Manougian is represented by Lisa R. Considine and Oren Faircloth of Siri & Glimstad LLP.

The TD Bank fees class action lawsuit is Christine Manougian v. TD Bank North America, Case No. 1:24-cv-04429, in the U.S. District Court for the Eastern District of New York.

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