TD Bank customers could be entitled to a share of a $15.9 million settlement as part of an ongoing class action lawsuit. In December, the law firm Koskie Minky LLP revealed the existence of a proposed settlement related to allegations of repeated non-sufficient funds (NSF) fees charged to customers without adequate prior notification.
The lawsuit contended that customers incurred multiple NSF fees without proper warning of this possibility. Despite TD Bank denying liability, they opted to settle the case after a mediation process in August. The proposed settlement amount is $15.9 million, but its final approval is pending a hearing scheduled for February 12.
If the settlement receives approval, TD Bank will deposit the owed funds directly into the bank accounts of eligible class members. This means that eligible customers won’t need to take any additional steps to claim their portion of the settlement.
Adam Tanel, a partner at Koskie Minsky, expressed satisfaction that class members wouldn’t face additional hurdles. “We believe that this is an excellent result for the class,” he mentioned in a press release, highlighting the collaborative effort to finalize the deal.
The class action primarily concerns NSF fees, charges applied when a cheque bounces or a customer’s payment is rejected due to insufficient funds. TD Bank’s “standard-form consumer banking agreement” outlined a $48 fee for such instances at the time of the lawsuit’s initiation. However, the lawsuit highlighted situations where customers faced a second NSF fee for the same rejected payment, arguing that proper information about the potential for repeated fees was lacking.
The class action was initiated in 2021 and received certification from the Ontario Superior Court of Justice on December 7. It encompasses individuals in Canada who held or currently hold a personal deposit account with TD Bank since February 2, 2019, and had incurred NSF fees during that period.
While eligible class members will automatically receive their funds if the settlement is approved, they have the option to opt out. Koskie Minsky LLP provides opt-out forms on their website, along with forms for filing objections to the proposed settlement. The deadline for both forms is January 26, and objections will be considered during the approval hearing in February.