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A Florida woman claims that TD Bank unfairly charges her and other customers overdraft and nonsufficient fund (NSF) fees resulting in charges of $70 or more on single transactions.
Lead plaintiff, Jill Abercrombie, wants to represent other TD Bank customers who she says were hit with excessive charges by the financial institution. Originally filed in Florida state court and removed to federal court Tuesday, the class action lawsuit accuses TD Bank of hiding this practice from customers in order to generate excessive NSF and overdraft fees.
Abercrombie says that in February she accidently overdrew her TD Bank account by attempting to make a one-time $100 transfer to Capital One. As a result, she says TD Bank rightfully charged her an NSF fee of $35; however, she claims the bank continued to attempt to process the transaction, this time hitting her with a $35 overdraft fee. In total, Abercrombie says she paid $70 in fees to process a single $100 transaction.
TD Bank could have started with the overdraft fee and paid the transaction, points out the plaintiff who contends that the single $35 fee is the one laid out in her account contract.
“The Account Documents explicitly promise that a single OD or NSF Fee will be assessed per ‘item’—defined as a customer request for payment or transfer—when in fact TD Bank regularly charges two or more fee per item,” alleges the class action lawsuit.
The plaintiff argues that each transaction should be considered a single item which, under the terms of TD Bank’s account documents, can only be assessed a single overdraft or NSF fee. She says that she and other reasonable TD Bank account holders would understand that they would not be charged multiple NSF and overdraft fees on a single transaction.
In fact, in April, TD Bank updated the terms of its account documents to expand the definition of “items” to include resubmitted transactions, such as in Abercrombie’s case, points out the class action lawsuit.
The practice of initially rejecting transactions and then accepting them to maximize NSF and overdraft fees unfairly penalizes customers says Abercrombie, noting that most account holders do not have the time and energy to negotiate with TD Bank.
The plaintiff wants to represent a nationwide Class of TD Bank checking account holders who were assessed NSF and overdraft fees on the same item prior to April 1, 2021. Abercrombie wants TD Bank to reimburse customers for the overdraft fees it unfairly assessed.
Have you paid TD Bank overdraft and NSF fees on a single transaction? We want to hear from you! Tell us about your experience in the comment section below!
The plaintiff is represented by Jeff Ostrow and Jonathan M. Streisfeld of Kopelowitz Ostrow PA, and Lynn Troops of Cohen & Malad, LLP.
The TD Bank Overdraft Fees Class Action Lawsuit is Abercrombie v. TD Bank, N.A., Case No. 0:21-cv-61376-JEM in the U.S. District Court for the Southern District of Florida.
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23 thoughts onTD Bank Double Dipped on NSF, Overdraft Fees, Alleges Class Action Lawsuit
How do I sign up for this or is it to late? I have spent thousands of dollars on overdraft fees
I have used td bank and have paid for over draft fees numerous times please add me also