If you are a TD Bank customer, you may be eligible to receive a portion of a $15.9 million settlement resulting from a recent class-action lawsuit. In December, the law firm Koskie Minsky LLP announced that a proposed settlement had been reached regarding a class-action lawsuit related to repeated non-sufficient funds (NSF) fees.
The lawsuit alleged that TD Bank customers were charged multiple NSF fees without proper notification of this possibility. Although TD Bank denied liability, they agreed to settle the matter after mediation in August.
The proposed settlement of $15.9 million is currently awaiting approval. A hearing scheduled for February 12 will determine whether the settlement is approved. If approved, TD Bank will deposit the owed funds directly into the bank accounts of eligible class members. This means that if you are eligible, you will not need to take any action to collect your portion of the settlement.
Adam Tanel, a partner at Koskie Minsky, expressed satisfaction that class members would not face additional requirements to receive their share. He stated that they believe this settlement is an excellent outcome and praised the effort put in by both parties to reach this agreement.
An NSF fee is typically applied when a check bounces or a customer’s payment to the bank is rejected due to insufficient funds. According to court documents, TD Bank customers were charged $48 for this situation, as specified in the bank’s “standard-form consumer banking agreement” at the time the lawsuit was initiated. However, some customers found themselves facing a second NSF fee for the same rejected payment. The lawsuit argued that customers were not adequately informed about the possibility of multiple NSF fees for a single payment.
The class action was initiated in 2021 and was certified by the Ontario Superior Court of Justice on December 7. It includes individuals in Canada who held a personal deposit account with TD Bank since February 2, 2019, and whose account incurred an NSF fee during that period.
While funds will be automatically deposited if the proposed settlement is approved, eligible class members have the option to opt out if they wish. Koskie Minsky LLP has provided opt-out forms on their website, as well as forms for filing objections for those who want to remain part of the class but object to the proposed settlement. Both forms must be submitted by January 26, and objections will be addressed during the approval hearing in February.