TD Bank $32,225,000 Overdraft Fees Settlement: Award Details

Will Gendron
Editor in Chief
Published
July 9, 2024 12:28 AM
Updated
July 24, 2024
TD Bank $32,225,000 Overdraft Fees Settlement: Award Details
Settlement Open for Claims
Award:
Varies
Deadline:
SUBMIT CLAIM

If you held a TD Bank personal checking account and were charged APSN overdraft fees between June 27, 2019, and September 30, 2022, you may be eligible to claim an award from a class action settlement.

TD Bank, N.A. has agreed to pay $32,225,000 to settle a class action lawsuit for alleged improper assessment and collection of certain overdraft fees not authorized by the account agreement.

Can I Claim an Award?

The Settlement Class includes those who meet the following criteria:

  • Who: current and former holder of a TD Bank personal checking account
  • When: between June 27, 2019, and September 30, 2022
  • What: incurred one or more overdraft fees for a debit card transaction that was authorized at a time when the account’s available balance was positive but later paid by TD Bank when the account’s available balance was insufficient to cover the transaction.
  • How Many:approximately 675,000 members

If you received a notice of the Settlement from a postcard or email addressed to you, then you are likely a member of the Settlement Class. However, even if you did not receive such a notice, you may still be a member of the Settlement Class if you meet the criteria mentioned above.

What Awards Can Class Members Claim?

The Settlement provides a total of $32,225,000 in relief, which includes $21,975,000 in monetary payments and $10,250,000 in reductions to the outstanding balances of accounts closed with amounts owed to TD Bank. After deducting attorneys’ fees, service awards, and administrative costs, the remaining cash relief will be distributed among the Settlement Class.

  • Current customers: will receive a credit to their accounts
  • Former customers: will receive a check from the Settlement Administrator.

The amount each class member receives will be calculated on a pro rata basis, based on the total amount of eligible fees incurred by each member relative to the total amount of eligible fees incurred by all members.

For example, if the Net Settlement Fund is $20,000,000 after deductions, and the total eligible fees incurred by all class members is $40,000,000, then a class member who incurred $200 in eligible fees would receive a payment of $100.

Is Proof Required to Claim the Reward?

Proof is not applicable to the TD Bank APSN fee class action settlement because the Settlement Administrator already has the necessary information to determine eligibility and calculate the award amounts.

How to Claim Your Award

To claim your award, you do not need to take any action if you are a current customer of TD Bank, as the award will be automatically credited to your account. If you are a former customer, you will receive a check from the Settlement Administrator. For more information, you can visit the official settlement website or contact the Settlement Administrator.

$32,225,000 Settlement Fund Breakdown

The total settlement amount is $32,225,000, which includes $21,975,000 in monetary payments and $10,250,000 in overdraft forgiveness. Attorneys’ fees, costs, and expenses will be deducted from the monetary payments, along with service awards for the named plaintiffs and administrative costs.

The attorneys’ fees are expected to be up to 33% of the settlement value, which amounts to approximately $10,634,250. The named plaintiffs will receive service awards of up to $5,000 each, and the administrative costs are estimated to be around $550,000.

Important Dates

  • Deadline to Object to the Settlement: September 14, 2024
  • Deadline to Opt Out of the Settlement: September 14, 2024
  • Final Approval Hearing: October 10, 2024

When will Awards be Paid?

Awards will be paid within approximately 60 days after the Settlement is approved, provided there are no appeals.

Why is There a Class Action Settlement?

The lawsuit claims that TD Bank breached its contracts with personal checking accountholders by assessing and collecting certain overdraft fees not authorized by the account agreement. TD Bank denies these allegations but has agreed to settle the lawsuit to avoid the costs and uncertainty of litigation.

What Happens Next?

The next steps include the Final Approval Hearing, where the Court will decide whether to approve the Settlement. If approved, the awards will be distributed to eligible class members within approximately 60 days, provided there are no appeals.

Notice Letter

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Status
Pending Court Approval
Category
Banking
Settlement Amount
$32,225,000
Award
Varies
Is Proof Required?
No Proof
No Proof
Days Remaining to file Claim
Claim Deadline
Fairness Hearing
Final Approval Hearing
October 10, 2024
Case Number
1:21-cv-18194-KMW-AMD
Case Title
Burns, et al. v. TD Bank, N.A.
State
Court
Jurisdiction
Claims Administrator
Epiq Systems, Inc. PO Box 5826 Portland, OR 97228-5826 888-695-6078
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