TD Bank has agreed to settle a lawsuit over its processing of overdraft fees for $62 million, the bank and plaintiffs' attorneys stated in a court filing late Friday.
The settlement is subject to the approval of District Judge Lawrence King of the U.S. District Court for the Southern District of Florida. King is overseeing mass litigation involving dozens of banks that allegedly bilked their customers by manipulating the posting order of debits to customer accounts. By reordering the charges from high to low, TD Bank and its peers heaped additional overdraft fees on debit-card customers who spent more money than they had in their accounts.
TD does not admit any wrongdoing.
"We are very pleased with this settlement," said Robert Gilbert, one of the attorneys in charge of the plaintiffs' litigation. According to Gilbert, the settlement represents "a substantial portion of TD consumer account holders' damages."
Previous settlements in the case have ranged from around 10% to as much as two-thirds of the alleged damages.