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A BANK is involved in a $32.2 million settlement after allegedly charging customers illegal overdraft fees.
Class members will automatically receive a payment unless they exclude themselves from the settlement.
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Individuals with a TD Bank personal checking account between June 27, 2019, and September 30, 2022, could receive payments or account credits from the $32.225 million settlement.
The TD Bank settlement resolves claims the bank allegedly charged customers certain overdraft fees – known as ASPN fees – in this period.
Fees were added to transactions authorized with a positive account balance but later paid by the bank when a customer’s account balance was insufficient.
The class action lawsuit claims TD Bank violated its account terms.
These unauthorized fees were allegedly charged on transactions despite the bank previously approving the transactions with a positive, sufficient balance.
TD Bank has not admitted any wrongdoing but agreed to pay this $32.225 million sum to resolve the lawsuit.
The company is a commercial bank that offers its customers checking accounts, savings accounts, lending opportunities, and more.
$21.1975 million of the net settlement fund will provide payments to customers who paid these ASPN fees.
Class members will receive a proportional share of the settlement based on the amount of ASPN fees they paid in the class period.
The amount consumers shall receive will vary.
At this moment in time, no payment estimations are available.
Customers who still hold TD Bank accounts will receive their payments as account credits.
Those who no longer have current accounts at the bank will receive their payments via check.
The remaining $10.25 million of the settlement comes from reductions in outstanding balances owed by customers.
What’s a class-action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
TD Bank has agreed to forgive any outstanding balances linked to ASPN fees.
The deadline for exclusion and objection is September 14 – a month from today.
The final approval hearing for the settlement is scheduled for October 10, 2024.
WHO IS ELIGIBLE?
There is no requirement for consumers to file a claim form to benefit from the TB Bank settlement.
Class members who do not exclude themselves will automatically receive a check or account credit.
Current and former TD Bank personal checking account holders who were charged an ASPN fee between Jun 27, 2019, and September 30, 2022, will receive a payment.
Meanwhile, payments of up to $11.5k are available to Americans whose personal information was compromised in an MCG Health data breach.
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