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TD Bank Overdraft Fee Class Action Settlement Overview:
- Who: TD Bank has reached a settlement with consumers.
- Why: The $4.25 million settlement closes out a class action alleging that the bank illegally charges overdraft fees on transactions that have already faced an insufficient funds fee.
- Where: Approval of the class action settlement is pending in Florida federal court.
TD Bank has reached a $4.25 million settlement with consumers who allege that the bank breached contracts by charging excessive overdraft fees on items that had already faced an insufficient funds fee.
Jill Abercrombie, who filed a class action lawsuit in June, called on a Florida federal court to give preliminary approval to the $4.25 million settlement, which would include all attorneys’ fees and expenses, administration and notice costs, and service awards.
Abercrombie says in the motion that the settlement “represents substantial relief and an excellent result for the Settlement Class,” representing a recovery of 33 percent of the maximum damages that she argued were at issue, and over 80 percent of the maximum damages TD Bank argued could be available.
Settlement funds will be distributed to Class Members on a pro-rata basis, depending on the number of so-called retry overdraft (OD) fees each person was charged during the Class period of June 1, 2015, through April 30, 2021.
The settlement funds will be distributed via direct deposit or check, with no claims process and no reversion to TD Bank, the motion states. There will be a second distribution of the funds if money remains, and any leftovers will be donated to charity.
Attorneys for the Class are expected to request one-third of the settlement fund plus “reimbursement of reasonable costs.” Abercrombie will also request a $5,000 service award, but that is dependent on how the Eleventh Circuit rules on a separate case regarding class representatives, Law360 reports.
TD Bank Overdraft Fee Class Action Lawsuit
Abercrombie sued TD Bank for allegedly charging multiple overdraft fees on the same transaction when the transactions were returned due to insufficient funds, assessed a nonsufficient funds fee, or resubmitted for payment by a merchant or third party.
Abercrombie says that in February she accidentally 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.
“This case concerns TD Bank’s business practice of imposing both an OD fee and an NSF fee on the same item,” the class action reads.
In the motion, Abercrombie says the settlement is fair and reasonable and that it had been subject to “early, well-informed settlement negotiations.”
“The parties concluded that the benefits of the settlement outweigh the risks and uncertainties attendant to continued litigation,” the motion reads.
TD Bank is currently facing a similar lawsuit for its overdraft fees in New Jersey, which it is trying to move to federal court.
To see if you qualify to join an overdraft fee class action lawsuit investigation click here (links to paid attorney advertisement).
The plaintiff is represented by Jeff Ostrow and Jonathan M. Streisfeld of Kopelowitz Ostrow PA; Lynn Toops of Cohen & Malad LLP; and Jeffrey Kaliel of Kaliel PLLC.
The TD Bank Overdraft Class Action Lawsuit is Abercrombie v. TD Bank NA, Case No. 0:21-cv-61376, in the US District Court for the Southern District of Florida.
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76 thoughts onTD Bank Reaches $4.25M Settlement in Overdraft Fee Class Action
I’m a td customer add me
TD bank is still doing this, in the last couple days alone, I was charged an overdraft fee for going over my limit on Tuesday, I get paid on Fridays, I got another overdraft charge fee this morning for no new reason…I had even put some money into that account. If they’re still doing this, isn’t that a more serious crime. This has been going on for years.
I received a class act lawsuit from TD banks for over draft fee how I received the money
It has happened again in the last day, I was charged an overdraft fee on Wednesday, hadn’t touched the account, bc I’m obviously in a negative balance, but the charges me another overdraft fee on Thursday
Add me
TD bank is still doing this, in the last couple days alone, I was charged an overdraft fee for going over my limit on Tuesday, I get paid on Fridays, I got another overdraft charge fee this morning for no new reason…I had even put some money into that account. If they’re still doing this, isn’t that a more serious crime. This has been going on for years.