TD Bank Faces a Class Action Lawsuit for Charging $9 as ATM Checking Balance Fee
TD Bank is in a class action lawsuit as it violated its customers’ contracts by charging them $9 to check their balance at out-of-network ATMs, a judge has ruled.
Confusing Fee Schedule Phrasing
Judge Robert B. Kugler of the United States District Court for the District of New Jersey ruled last Thursday that the bank must continue to face the majority of the breach of contract claims brought by Plaintiffs Tashina Drakeford and Denise Galgano, both of whom hold TD bank accounts.
In May of last year, the plaintiffs filed a class action lawsuit arguing that the bank’s fee schedule was unclear to clients until recently.
They stated that the entire price for using an out-of-network ATM to simply check their balances may reach $9, which came as a surprise to many.
The fees included:
- $3 out-of-network fee
- $3 balance inquiry fee, and
- ATM provider fee
Denise Galgano et al., v. TD Bank NA
Last year, TD Bank attempted to brush off the class action by claiming that its fees were transparent. As per the company’s fee schedule, it charges $3 for each withdrawal, transfer, and balance inquiry via a non-TD ATM.
However, Judge Kugler determined that the fee schedule phrasing was unclear.
He stated that the plaintiffs claimed that they interpreted the fee schedule phrasing to suggest they would be charged $3 for each balance inquiry, and he was forced to agree with them on that issue.
In addition, Kugler said that the fee schedule phrasing is confusing and that ambiguity must be interpreted in favor of plaintiffs at the motion to dismiss stage.
Furthermore, he stated two allegations were made against the bank, saying it violated New York’s General Business Law and New Jersey’s Consumer Fraud Act due to timing and not meeting the requisite level of “unconscionability.”
Previous TD Settlement
TD Bank agreed last month to a $41.5 million settlement in a class action lawsuit due to it charging people for services they did not receive.
The plaintiff in that issue filed a class action lawsuit in November 2018, stating that TD Bank charged customers multiple times for insufficient funds when merchants attempted to execute the same transaction repeatedly.
Editor’s Note on TD Bank ATM Balance Fee Class Action Lawsuit 2021:
This article is written to inform you of the class action lawsuit filed against TD Bank due to confusing fee schedule phrasing.
Case Name & No.: Denise Galgano et al., v. TD Bank NA, Case No. 1:20-cv-05623
Jurisdiction: U.S. District Court – District of New Jersey
Products/Services: ATM fee upon checking balance
Allegations: TD Bank allegedly violated customers’ contracts by charging them $9 just for checking their balance at out-of-network ATMs
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