TD Bank Canada Class Action Settlement Approved, Eligibile Customers Can Get up to $150

The TD Bank Canadian Shareholder Lawsuit started in 2021, accusing TD Bank of improperly charging customers more than one fee for transactions that didn’t go through due to lack of funds.

The main issue was that TD Bank was said to charge extra fees for the same transaction, either because of technical problems or when a transaction was attempted again after being declined. The lawsuit argued that this was against the bank’s rules and unfair to customers.

In February 2024, the Ontario Superior Court of Justice approved a settlement in this case, with TD Bank agreeing to a $15.9 million fund.

Eligibility for the TD Bank Settlement

The settlement targets Canadian residents who had personal deposit accounts with TD Bank and were charged NSF fees for pre-authorized debit transactions from February 2, 2019, to November 27, 2023. Individuals who obtained a TD Cash Secured Credit Card between 2015 and January 18, 2022, might also qualify for benefits under this class action settlement.

Canada Dollarama Class Action Settlement

Allegations Against TD Bank

The lawsuit accused TD Bank of imposing multiple NSF fees on transactions like payments or cheques when there weren’t enough funds in the customer’s account. Key points include:

• Multiple NSF Fees on a Single Transaction: Customers were charged more than one NSF fee for a single payment or cheque, particularly when a transaction was re-presented for payment. This could happen if a merchant attempted to process a pre-authorized debit more than once due to initial payment failure.
• System Errors and Technical Issues: The lawsuit highlighted instances where customers were charged multiple NSF fees due to system errors or technical glitches. This led to the same transaction being processed multiple times.

Legal Proceedings and Settlement

The class-action lawsuit was filed in 2021, and the Ontario Superior Court of Justice approved the settlement; it represents Canadian residents who were TD Bank customers and had been charged NSF fees under the abovementioned circumstances. The period covered by the lawsuit was from February 2, 2019, to November 27, 2023.

After legal proceedings, TD Bank agreed to settle the lawsuit for $15.9 million without admitting any wrongdoing or liability. After deductions for legal fees and other expenses, approximately $9,740,000 will be available for distribution to eligible class members. TD Bank has not admitted to any wrongdoing or liability and disagrees with the allegations made in the lawsuit.

Claiming the Canada TD Bank Class Action Settlement

To claim the TD Bank Canadian Shareholder Settlement, eligible individuals should:

1. Visit the official settlement website.
2. Complete and accurately fill out the claim form provided.
3. Submit the claim form according to the instructions on the website.

Claimants can complete the form and upload supporting documentation on the Administrator’s website or contact the Administrator directly for assistance.

TD Bank Settlement Payment Details

Eligible customers are expected to receive approximately C$150 per account. The final payment amount may vary depending on the number of eligible claimants and the additional NSF fees they incurred. The settlement includes provisions for covering settlement administration expenses, attorneys’ fees, and a service award for each Class Representative.