TD Business Checking $15.5M Overdraft & NSF Fees Settlement

Will Gendron
Editor in Chief
Published
July 7, 2024 2:55 PM
Updated
July 24, 2024
TD Business Checking $15.5M Overdraft & NSF Fees Settlement
Settlement Open for Claims
Award:
Deadline:
SUBMIT CLAIM

If you have or had a business checking account with TD Bank, N.A. and you were charged APSN overdraft fees and/or retry fees between February 23, 2016, and September 30, 2022, you may be eligible to claim a payment from a class action settlement.

TD Bank has agreed to pay $15,500,000 to settle a class action lawsuit for alleged improper assessment and collection of certain Overdraft Fees and NSF Fees not authorized by the bank's account agreement.

Can I Claim an Award?

To be part of the Settlement Classes, you must meet the following criteria:

  • You must have had a TD Bank business checking account between February 23, 2016, and September 30, 2022
  • You must have been assessed an APSN Fee or Retry Fee by TD Bank during the Class Period.

APSN Fee: an Overdraft Fee assessed by TD Bank for a debit card transaction that was authorized at a time when the account's available balance was positive but later paid by the bank when the account's available balance was insufficient to cover the transaction.

Retry Fee: an Overdraft Fee or NSF Fee assessed by TD Bank on a debit transaction that was returned unpaid by the bank due to insufficient funds and subsequently resubmitted by a merchant or other third party for payment and returned unpaid or paid into overdraft.

What Awards Can Class Members Claim?

The Net Settlement Fund, after deducting attorneys' fees, costs, service awards, and administrative costs, will be distributed among the Settlement Classes. Current customers of TD Bank will receive a credit to their accounts, while former customers will receive a check from the Settlement Administrator.

  • APSN Fee Class: The portion of the Net Settlement Fund allocated to the APSN Fee Class will be distributed to Participating Settlement Class Members on a pro rata basis based on the total amount of APSN Fees each such member incurred in relation to the total amount of APSN Fees incurred by all Participating Settlement Class Members.
  • Retry Fee Class: The portion of the Net Settlement Fund allocated to the Retry Fee Class will be distributed to Participating Settlement Class Members on a pro rata basis based on the total amount of Retry Fees each such member incurred in relation to the total amount of Retry Fees incurred by all Participating Settlement Class Members.

For example, if the Net Settlement Fund is $7,000,000 after deductions and the APSN Fee Class is allocated 78% of the fund, then $5,460,000 will be distributed among the APSN Fee Class members. If a member incurred $100 in APSN Fees and the total APSN Fees incurred by all members is $10,000,000, the member would receive $54.60.

Is Proof Required to Claim the Reward?

Not applicable. The Settlement Administrator will use TD Bank's records 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. You will automatically receive an account credit. If you are a former customer, you will receive a check from the Settlement Administrator.

$15,500,000 Settlement Fund Breakdown

TD Bank has agreed to a total settlement amount of $15,500,000. This includes $10,500,000 for payments to Settlement Class Members, attorneys' fees and expenses, settlement administration costs, and service awards to the named plaintiffs. Additionally, $5,000,000 will be provided in the form of reductions to the outstanding balances of Participating Settlement Class Members whose accounts were closed with amounts owed to TD Bank.

The attorneys' fees and expenses are capped at 33% of the Value of the Settlement. The named plaintiffs will receive service awards of up to $5,000 each for their participation in the lawsuit.

Important Dates

  • Deadline to File a Claim: Not applicable as no claim form is required.
  • 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 about 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 business checking accountholders by assessing and collecting certain Overdraft Fees and NSF Fees not authorized by the bank's account agreement. TD Bank denies any wrongdoing, but the parties have agreed to settle to avoid the costs and uncertainty of litigation.

What Happens Next?

The Court will hold a Final Approval Hearing on October 10, 2024, to decide whether to approve the Settlement. If approved, payments will be made or credits will be issued within about 60 days, provided there are no appeals.

Notice Letter

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Status
Pending Court Approval
Category
Banking
Settlement Amount
$15,500,000
Award
Is Proof Required?
TBD
TBD
Days Remaining to file Claim
Claim Deadline
Fairness Hearing
Final Approval Hearing
October 10, 2024
Case Number
1:22-cv-00958-KMW-AMD
Case Title
Amazing Fishstore LLC et al. v. TD Bank, N.A.
State
Court
Jurisdiction
Claims Administrator
Epiq Systems, Inc. P.O. Box 5657 Portland, OR 97228-5657 888-861-9530
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