TD Bank to Settle Another Overdraft Fee Class Action Lawsuit for $4.25 Million
TD Bank has agreed to pay consumers $4.25 million in a lawsuit settlement to resolve claims that the bank breached agreements by charging overdraft fees (ODF) on items already assessed with a non-sufficient funds (NSF) fee.
What the $4.25 Million Settlement will Cover
Jill Abercrombie, who brought the class action lawsuit in June, requested preliminary approval of the $4.25 million TD Bank Overdraft & Non-sufficient Funds Settlement that would cover all attorneys’ fees and expenses, notice and administration costs, as well as service awards.
Abercrombie asserts in her motion that the settlement represents significant relief and an outstanding result for the Settlement Class, equating to a recovery of 33% of the maximum damages she argued were at issue, and more than 80% of the total damages TD Bank argued were attainable.
TD Bank Overdraft & Non-sufficient Funds Settlement funds will be given pro-rata to Class Members based on the number of retry overdraft (OD) fees incurred to each person throughout the Class period from June 1, 2015, to April 30, 2021.
The motion states that the settlement funds will be delivered via direct deposit or through a check, with no claims process or reversion to TD Bank. A second distribution will occur if funds remain, and any remaining funds will be given to charity.
Attorneys for the Class are anticipated to seek one-third of the settlement fund in addition to reimbursement for reasonable fees. Abercrombie will also seek a $5,000 in service awards, but it is based on the outcome of a separate case involving class representatives before the Eleventh Circuit.
About the TD Bank ODF Lawsuit
Jill Abercrombie, the lead plaintiff, claims that she accidentally overdrew her TD Bank account in February while attempting to make a $100 transfer to Capital One. As a result, she claims that TD Bank charged her a $35 NSF fee; however, she claims that the bank attempted to complete the transaction again, charging her a $35 ODF. Abercrombie claims she spent a total of $70 in fees to process a $100 single transaction.
TD Bank could have proceeded with the ODF and funded the transaction, the plaintiff asserts, arguing that the $35 fee is consistent with the terms of her account contract.
The plaintiff believes that each transaction should be treated as a single item for which, under the terms of TD Bank’s account documentation, only a single overdraft or non-sufficient funds fee can be assessed.
Indeed, the class action lawsuit notes that TD Bank amended the terms of its account documentation in April to widen the definition of “items” to include resubmitted transactions.
Abercrombie asserts that the practice of initially declining transactions and then approving them in order to maximize NSF and OD fees unfairly penalizes customers.
Editor’s Note on TD Bank Overdraft & Non-sufficient Funds Settlement:
This article is written to inform you of the $4.25 million settlement from TD Bank to resolve overdraft fees claims against it. You can read about the Overdraft lawsuit, here.
Case Name & No.: Jill Abercrombie v. TD Bank NA, Case No. 0:21-cv-61376
Jurisdiction: US District Court for the Southern District of Florida
Allegations: TD Bank charged ODF after it already charged an NSF fee
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