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TD Bank Overdraft Fee Class Action Lawsuit Overview:
- Who: TD Bank has moved an overdraft fee class action lawsuit from a district court to federal court in New Jersey.
- What: The lawsuit accuses the bank of illegally accessing overdraft fees and swindling customers out of millions of dollars.
- Where: The claim is for TD customers nationwide.
TD Bank has moved a class action lawsuit accusing it of illegally accessing overdraft fees and swindling customers out of millions of dollars from a district court to federal court in New Jersey.
The bank says in the order of removal that the putative Class Members are aggregated to determine $5 million in controversy, which is required for a federal court case.
“Although TD Bank denies liability and denies Plaintiff’s theories and claims of damages, the Complaint seeks class-wide damages, in the aggregate, that exceed the $5,000,000 amount in controversy requirement …,” the bank says, adding the consumers are nationwide making federal court the most applicable venue for the case.
TD Bank Overdraft Fee Class Action Lawsuit
The class action lawsuit was filed in August by lead plaintiff Kyle Burns who is seeking damages, restitution, and declaratory relief from TD Bank for alleged unfair and improper assessment and collection of overdraft fees.
Burns alleges the bank breaches its contractual promises, which include that TD will reduce balances to reflect debit card transactions immediately, therefore stopping approved debit card transactions from being assessed an overdraft fee.
TD nevertheless charges overdraft fees on these transactions, Burns says.
“TD also breaches its duty of good faith and fair dealing when it charges OD Fees even when customers did not actually have insufficient funds because the funds were taken from the available balance and held at the time of approval,” he says in the lawsuit.
The bank’s customers have been injured by TD bank overdraft fees to the tune of millions of dollars taken from their accounts in violation of their agreements, Burns states.
The lawsuit challenges the practice of charging overdraft fees on Authorize Positive, Purportedly Settle Negative (APPSN) Transactions. A number of banks are facing class action lawsuits over this same practice.
“There is no justification for this improper practice, other than to maximize TD’s OD Fee revenue,” Burns alleges.
“APPSN Transactions only exist because intervening checking account transactions supposedly reduce an account balance. But TD is free to protect its interests and either reject those intervening transactions or charge OD Fees on those intervening transactions—and it does the latter to the tune of millions of dollars each year.”
Burns wants to represent TD customers nationwide and is suing for breach of contract. He seeks certification of the Class, damages, restitution, declaratory relief, interest, legal fees and costs, and a jury trial.
In 2019, TD Bank agreed to pay a $70 million class action settlement to end claims the bank charged excessive overdraft fees.
Do you bank with TD? Tell us about your experience with TD Bank overdraft fees in the comments section below!
Burns is represented by Kenneth J. Grunfeld and Richard M. Golomb of Golomb Spirt Grunfeld PC and E. Adam Webb of Webb Klase & Lemond LLC.
The TD Bank Overdraft Fee Class Action Lawsuit is Burns v. TD Bank NA, Case No. 1:21-cv-18194, in the U.S. District Court for the District of New Jersey.
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42 thoughts onTD Bank Overdraft Fee Class Action Moves to Federal Court
Add me to lawsuit. I have paid literally thousands of dollars in overdraft fees, They have always charged fees multiple time, for the same exact transaction, calling it whatever they chose. Something would present, charge fee, rhey returned item, charge fee, paid item charge an additional fee.
Also, they would not clear items in the order they presented, they would clear items in an illogical way, further charging as many times as they could, because they double or triple charged for an overdraft. This created a vicious cycle, and made it almost Impossible to ever come out of the hole.
Also been charged numerous exorbitant overdraft fees by td bank over the last few years.
TD bank has been a horrible nightmare. There’s been multiple times that overdraft fees were charged to my account due to its delayed response to transactions. I’ve called them out so many times about the date rearranging that they do. The posted dates were continuing to happen despite my complaints. They would always manipulate the dates of transaction records and I would always ask or complain about that.
I’ve spoken to their chairman of the board more times than I can remember. On one occasion, I had a merchant with my account on record kept charging me without authorization. I filed a dispute with TD bank and provided the invoices to them. Initially they replaced the money back, but a few months later I lost my debit card. Charges were made multiple times before I knew it was gone. TD bank didn’t contact a hotel room, Lyft, and others in this theft. They told me that I had to pay for the fraud placed on my account.They also told me to call the hotel and take it up with the merchant there. Lyft as well.
I couldn’t believe it! I called the hotel and they verified that it wasn’t me, and returned the money back.
Thing is, while I’m making these calls to recover my money. TD bank revoked the earlier disputes over the lifetime of my account with them! Which included overdraft fees attached! I called them and asked what was going on, I was told lies and that they didn’t have to answer me due to policy. And that the fraud department had concluded their investigation. But a investigation was never made or a dispute. I asked why weren’t they investigating the recent incident with my card and to contact Lyft to seek reimbursement. Needless to say they didn’t contact anyone with this incident. Upset with fees of overdraft of 5k , I ended the account. I had direct deposit’s and changed banks. TD bank after 3 weeks continues to take some of these deposits and falsely add that fees were accrued with a closed account!
To this day I don’t have my paychecks from them nor was any investigation made by them on the fraud theft of my account. The very last conversation with the collection/fraud department was that of where’s my direct deposits and to release me from the records. Because of the past revocation of their so called account protection, I was forced to pay to open with another bank the whole 5k.
Between the fraud/collection department and the agents that I spoken with ( supervisor) both, each blaming the other, I had to make a payment agreement.
Td bank didn’t release my information in the national banking system and held me there despite clearing it all.
In the end the collection department made a complaint against their own. Because of the fraud and records departments withholding of processing the updates and denying that they weren’t. When the complaint was made by the other supervisor, I went from two more weeks to clear me in the system to the same day.
All this was out of spite of my willingness not to continue this nightmare and get far away from them. Till this day my paychecks with a closed account is theirs.
If someone can help me with this I will be very appreciative.
I need be included here ! TD bank is worse bank ever ! An account was opened without my consent ANDA THEN I was charged thousands for returned purchases and overdraft
I have been charged by TD Bank over $4000 in fees in two different bank accounts I have paperwork the emails everything it’s ridiculous and they won’t give me my money back. They even closed my account without letting me know