TD Customers Could Soon See Payments From NSF Class Action Lawsuit Settlement

TD and RBC logos are seen on the outside of office towers in downtown Vancouver on Jan. 19, 2023. The two large Canadian banks feature prominently in Canadian ESG funds. (The Canadian Press/Darryl Dyck)

If you’re a TD Bank customer, you could soon receive a payment as part of a $15.9 million class action settlement.

The lawsuit alleges the bank charged duplicate non-sufficient fund (NSF) fees on “re-presented pre-authorized debit (PAD) transactions.”

Customers were charged a $48 pre-authorized debit by the bank, and within 30 days, they were charged a second $48 fee from the same merchant for the same dollar amount as the first payment, according to the notice of settlement.

“As a result of its unlawful practice, TD Bank has profited enormously, accruing tens of millions of dollars per year by charging illegitimate fees to class members,” the statement of claim said.

The document said this unfairly hurts lower income Canadians “who are more likely to maintain low bank account balances and more likely to use online vendors in lieu of credit cards.”

TD has denied liability and will not have to admit wrongdoing as part of the settlement.

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“The Court has not decided whether TD Bank did anything wrong,” the document said. “If the case had not settled (or if the proposed settlement had not been approved), the plaintiff would have to prove his claims and the claims of the other class members against TD Bank at a trial. There is no guarantee that the plaintiff would win any money or benefits for the class at trial.”

Any Canadian resident who had an account with TD Bank and was charged the fees between Feb. 2, 2019, and Nov. 27, 2023, is eligible to receive a portion of the settlement.

“All eligible class members received a notice directly from TD Bank through EasyWeb advising them that the Settlement Agreement has been approved and that they are eligible to receive compensation,” said a notice from attorneys involved in the case.

Those who opted in to the class action settlement by Feb. 12, 2024 do not need to do anything more and will  automatically be paid. The settlement was approved by the Ontario Superior Court of Justice Feb. 15.

Approximately $9.74 million is left to pay out to claimants after legal fees were deducted from the settlement amount.

Legal firm Koskie Minsky can be contacted for more information on the class action lawsuit and settlement.