TD Bank has agreed to pay more than $15.9 million Canadian dollars to settle a lawsuit alleging that the bank charged customers multiple nonsufficient funds fees per transaction.
The settlement stems from a class-action lawsuit filed on behalf of TD customers who were charged the duplicative fees starting in February 2019.
"[TD Bank]'s practice of charging multiple NSF fees on each subsequent attempt to process the same already rejected transaction is a breach of its contract," lawyers for the plaintiffs said in a 2021 complaint.
Fees charged to consumers by banks large and small have come under increased scrutiny in recent years. The Federal Deposit Insurance Corp. has called nonsufficient funds fees
The suit alleged that many off-duty cops picked up shifts at TD as security guards, only to go unpaid or wait months for their paychecks. The settlement did not include an admission of liability by the bank.
Consumers eligible for payments from the TD settlement include those who are Canadian residents, hold deposit accounts with TD and were charged multiple $48 Canadian fees on a single transaction. Payments will be directly deposited into the accounts of TD customers who meet these requirements, according to the settlement agreement.
The settlement agreement is scheduled to go before a Canadian court for approval in February 2024, according to a press release from Koskie Minsky, the law firm representing the plaintiffs. The agreement includes the stipulation that TD doesn't admit liability in the case.
"It took a lot of work, on both sides, to get this deal done," said Adam Tanel, a partner at Koskie Minsky. "We're pleased with the outcome."
The settlement isn't the first TD has agreed to this year. In September, a judge approved
