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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
Why is everything saying, ADD ME!!!…when we ALL should be saying give us are money back..we waited long Enough they didn’t wait to take the money from are Accounts..
I have been with TD Bank and have had overdraft charges that were incorrect many times and that takes many hours sometimes or days, that’s if I catch it in time, out of my time that doesn’t seem to mean anything anymore because everything needs correcting. But I can tell you this if you need back every single month for 15 years has given me overdraft fees that were absolutely correct. For them not to tell their customers is convenient for Florida because anytime there’s a class action anything, people affected aren’t ever given proper time and then they’re told it’s too late. If I deserve anything it’s something substantial for my grief and my time as well as other Financial difficulties due to TD Banks incompetence. Nobody’s perfect but when you’re at fault, meaning td, you’re kind of on the hook and it’s your their responsibility as a business especially a financial institution
One time I overdrafted and they took one whole paycheck and half of the next one, not cool.
Add me
Add me to class settlement
I already received a letter for this class settlement. I still haven’t received a check
I too received postcards months ago, WHERE’S MY MONEY?
ADD me to the class action
Add me. Been occurring overdrafts for years now . 2 years in a row I was overdrafted several hundred dollars while they posted checks to my deposited account but wouldn’t process the deposit for over 14 days when every other bank takes 2-3 days to process. They also refused to return the overdrafts.
I am writing regarding class action lawsuit. I have been charged a lot of OD fees and returned check fees. Prob over 2500 just this year. They charged me an OD fee for insufficient funds of 35.00 then for the same transaction which they did not cover they charged a returned check fee. They would submit it again and charge me returned check and OD FEE AND allow It to go Through A 3rd time and charge me again. This happened so much I was shocked they were allow to do this. Double charging fees for the same transaction.
Add
They also got me for a ton of fees .. I close my accounts went to a credit Union.. TD Would hold my checks collect Overdraft fees.. Over $1300 just 2 1/2 months…. Please add me
My account had over 400 dollars in over draft fees 3 months in a row because Amazon pushed 2 payments through 2 times a week until they got their money
Received a notice for eligibility for TD Bank overdraft fee lawsuit but never received anything
I already received a notice saying i was included in the settlement but everyone remember the finally hearing was this month may 3 so we should get our cuts 4 to 6 weeks after the final hearing
Add me was charge multiple time over $700