TD Bank exterior

A class action settlement has garnered $70 million for six Classes of TD Bank accountholders who were allegedly duped by deceptive overdraft fee policies.

The groups of Class Members include:

  • Those who held a personal account with TD Bank between Aug. 16, 2010 and April 22, 2016, and who were charged overdraft fees as a result of a TD Bank practice that based overdrafts fees on the holder’s “available balance” instead of the “ledger balance” (TD Available Balance Consumer Class)
  • Those with a TD Bank business account between Aug. 16, 2010 and June 26, 2019 who were charged overdraft fees as a result of a TD Bank practice that based overdrafts fees on the holder’s “available balance” instead of the “ledger balance” (TD Available Balance Business Class)
  • Those who had a Carolina First Bank/Mercantile Bank Account between Dec. 1, 2007 and June 20, 2011 and who were charged overdraft fees because of either banks’ practices of using “high to low posting” or use of the accountholder’s “available balance” (South Financial Class)
  • TD Bank personal accountholders who were charged overdraft fees for ATM or One-Time Debit Card Transaction between Aug. 16, 2010 and June 26, 2019 (Regulation E Class)
  • TD Bank personal or business accountholders who were charged an overdraft fee between March 8, 2013 and June 26, 2019 (Usury Class)
  • Those who had a personal account with TD Bank between Dec. 5, 2011 and June 26, 2019 who were not enrolled in TD Debit Card Advance and were charged overdraft fees for Uber or Lyft transactions (Uber/Lyft Class)

The TD Bank overdraft fee class action lawsuit accused the financial institution of a myriad of deceptive practices when it came to assessing overdraft fees. The case was consolidated from a number of different class action lawsuits.

The TD Bank overdraft fee class action lawsuit boiled down to five basic allegations, “(1) assessment of overdraft fees when there are sufficient actual funds in the account; (2) assessment of overdraft fees as a result of reordering debit transactions from high to low; (3) assessment of overdraft fees on transactions intentionally authorized into overdraft without notice to customers; (4) assessment of overdraft fees on ATM and one-time debit transactions in violation of [the Electronic Funds Transfer Act]; and/or (5) damages arising from TD Bank’s illegal practice of assessing its checking and money market account customers a purported ‘sustained’ overdraft fee in violation of [the National Bank Act].”

Banks and credit unions assess overdraft fees when an accountholder, who has signed up or opted into an overdraft protection program, makes a charge in excess of the funds they have in the account.



Overdraft protection programs spare consumers the embarrassment of having their debit card denied while making a purchase. While bank customers must opt into these programs, some consumers have complained that they were not adequately informed that they were signing up for this “protection.”

Others complain that banks reorder their transactions or use other dubious practices to ramp up overdraft fee charges for a handsome profit.

The TD Bank class action lawsuit alleged that the financial institution was engaged in such practices, including using the available balance in a customer’s account to assess overdraft charges, rather than the ledger balance.

Noting that the available balance in an account may be less at a given time than the ledger balance because of holds from other transactions, the plaintiffs alleged that TD Bank used this practice to maximize overdraft fee charges.

The class action lawsuits also claimed that TD Bank reorganized their transactions from highest to lowest, rather than by date, causing the high charges to empty the account and the low charges to result in multiple overdraft fees. The class action lawsuit further alleged that TD Bank had improperly assessed overdraft fees on consumers for Uber and Lyft ride-sharing transactions.



The financial institution agreed to pay $70 million to end the TD Bank class action lawsuit. Under the terms of the settlement, $43 million will be paid to certain sets of Class Members and $27 million will be used to issue overdraft fee forgiveness for the other Class Members.

All Class Members are eligible for cash payments; however, the following groups of Class Members must submit a Claim Form to take part in the settlement:

  • Usury Class
  • Regulation E Class
  • TD Available Balance Business Class
  • TD Available Balance Consumer Class

Class Members who submit a claim do not need to submit proof, although the online Claim Form requests the claim ID number from the settlement notice postcard. All other Class Members will be automatically entered into the settlement unless they object or opt out.

Overdraft fee forgiveness is available to those in the Usury Class, and TD Available Balance Consumer and Business Classes whose accounts were closed owing more than $75 to TD Bank in unpaid overdraft charges. TD Bank will also remove Class Members’ information from the ChexSystems national reporting database. No Claim Form is necessary.

The deadline to opt out of or object to the TD Bank overdraft fee class action settlement is Dec. 4, 2019.



Who’s Eligible

There are six settlement Classes in the TD Bank overdraft fee class action settlement:

  • “All holders of a TD Bank Personal Account, who, from August 16, 2010, to and including April 22, 2016, incurred one or more Overdraft Fees as a result of TD Bank’s practice of assessing Overdraft Fees based on the Account’s Available Balance rather than its Ledger Balance (‘TD Available Balance Consumer Class’); and
  • All holders of a Carolina First Bank/Mercantile Bank Account, who, from December 1, 2007, to and including June 20, 2011, incurred one or more Overdraft Fees as a result of Carolina First Bank’s and/or Mercantile Bank’s practices of (1) High-to-Low Posting or (2) assessing Overdraft Fees based on the Account’s Available Balance rather than its Ledger Balance (‘South Financial Class’); and
  • All holders of a TD Bank Personal Account who were assessed one or more Overdraft Fees for an ATM or One-Time Debit Card Transaction from August 16, 2010, to and including June 26, 2019 (‘Regulation E Class’); and
  • All holders of a TD Bank Personal or Business Account who, from March 8, 2013, to and including June 26, 2019, incurred one or more Sustained Overdraft Fees (‘Usury Class’); and
  • All holders of a TD Bank Personal Account who, from December 5, 2011, to and including June 26, 2019, incurred one or more Overdraft Fees on Uber or Lyft ride-sharing transactions while not enrolled in TD Debit Card Advance (‘Uber/Lyft Class’); and
  • All holders of a TD Bank Business Account who, from August 16, 2010, to and including June 26, 2019, incurred one or more Overdraft Fees as a result of TD Bank’s practice of assessing Overdraft Fees based on the Account’s Available Balance rather than its Ledger Balance (‘TD Available Balance Business Class’).”
Potential Award

Varies. 

  • Class Members claiming cash payments will receive a pro rata share of the $43 million settlement fund, so payments will depend on the number of valid claims submitted.
  • Class Members claiming forgiveness will receive up to $75 in overdraft fee forgiveness and their information will be removed from the ChexSystems national reporting database.
  • Regulation E Class Members can make a claim for up to $35.
Proof of Purchase

None required for Class Members who must submit Claim Forms.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

2/7/2020

Case Name

In re: TD Bank NA Debit Card Overdraft Fee Litigation, Case No. 6:15-mn-02613, in the U.S. District Court for the District of South Carolina

Final Hearing

1/8/2020

UPDATE: The TD Bank Overdraft Fee Class Action Settlement was granted final approval on January 9, 2020. Please note that claims will not be paid until after the claim deadline passes. Top Class Actions will continue to provide updates as we learn more. 

Claims Administrator

TD Bank Overdraft Litigation
c/o Epiq
P.O. Box 6006
Portland, OR 97228-6006
1-877-588-5722

Class Counsel

E. Adam Webb
WEBB KLASE & LEMOND LLC

Richard D. McCune
McCUNE WRIGHT AREVALO LLP

Defense Counsel

Donald R. Frederico
Lucus A. Ritchie
PIERCE ATWOOD LLP

If you were charged overdraft fees or NSF fees by your bank or credit union that you believe are improper for any reason, the attorneys who work with Top Class Actions are ready to investigate these fees on your behalf.

LEARN MORE

 

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.

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20 Comments

  • Tyrone Mays January 22, 2020

    What is the estimated amount that the Ursery Claimants will receive and when will it be disbursed?

  • Sophye Hochberg Fahrer January 17, 2020

    I have 4 TD accounts and was never notified I have been charged multiple overdraft fees. Please add me 646.207.9529 sophyehoch@gmail.com sophyehoch@yahoo.com

  • Michelle Blackwell January 13, 2020

    Please add me

  • Gail Shepard January 1, 2020

    Add me

    • Jen B January 20, 2020

      The article says that you will be automatically added and that you do not need to submit a claim form to obtain your money from TD Bank.

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