$32M TD Bank Overdraft Fees Class Action Settlement

Claim Form Deadline: Not Applicable
Payout: Varies
Proof Required: Not Applicable

What is the TD Bank Overdraft Fees Class Action?

A $32,225,000 class action lawsuit, Burns v. TD Bank, North America, has been settled. This lawsuit alleges that TD Bank violated its agreements with personal checking account holders by charging and collecting overdraft fees not authorized by the bank’s account terms.

Specifically, the lawsuit addresses APSN (“Authorize Positive, Settle Negative”) fees. These fees occur when a debit card transaction is authorized with sufficient funds but settles when the balance is insufficient, leading to an overdraft fee.

What are APSN Overdraft Fees?

APSN fees are charged when you make a debit card purchase with a positive account balance at the time of the transaction. However, if other transactions occur before the store withdraws the funds, you might end up with insufficient funds when the transaction settles, resulting in an overdraft fee despite having had enough money initially.

These fees can be frustrating and unexpected. The TD class action settlement aims to allow affected consumers to reclaim money from the $32 million settlement and to prevent banks from imposing unfair overdraft fees.

What is the Total Settlement Amount?

The total settlement amount is $32,225,000, which includes:

• $21,975,000 in monetary payments (“Settlement Payment Amount”)
• $10,250,000 in reductions to outstanding balances on closed accounts (“Overdraft Forgiveness”)

How Do I Qualify For a Payout?

You may qualify for a payout if you:

1. Held a TD Bank personal checking account.
2. Incurred one or more overdraft fees for debit card transactions that were authorized with a positive balance but were paid by TD Bank when the balance was insufficient.
3. The fees were incurred between June 27, 2019, and September 30, 2022.

How Much Can I Get Paid?

The exact amount each class member will receive is not specified. Payments will be determined by dividing the Net Settlement Fund (after deducting attorneys’ fees, costs, and other expenses) among all eligible class members as outlined in the Settlement Agreement.

When Will I Get Paid?

The court will hold a Final Approval Hearing on October 15, 2024, at 11:30 a.m. to decide whether the settlement should be approved. If approved, payments or credits should be issued approximately 60 days after the settlement is approved.

Possible delays in payment could include:

1. Objections to the class action that are sustained may prevent the settlement from proceeding.
2. Even if the settlement is approved, appeals from objectors could delay payments for months or years.
3. The notice advises class members to be patient, as the payment process may take time due to these factors. Current TD Bank customers will receive a credit to their accounts, while former customers will receive a check from the settlement.

How Do I File a Claim?

No claim form is necessary. Payments will be distributed automatically: current TD Bank customers will receive a credit to their accounts, and former TD Bank customers will receive a check from the Settlement Administrator.

Do I Need Proof to File a Claim?

No proof is required. TD Bank will use its own records to identify eligible class members and distribute payments or account credits automatically.

Please be aware that your claim form will be rejected if it contains fraudulent information. By submitting your information and your sworn statement of its accuracy, you are agreeing to do so under penalty of perjury. Submitting false information not only jeopardizes your claim but also affects others who are genuinely eligible for the settlement. If you are uncertain about your eligibility for this class action settlement, please visit the class action administrator’s website for more information. Note that NoProofClassActions.org participates in the Amazon affiliate advertising program, and this post may include affiliate links, which could result in us earning a commission if you make a purchase through those links.