TORONTO–Toronto-Dominion Bank (TD Bank) has agreed to pay $41.5 million (C$49.93 million) to settle a class action lawsuit in the United States over charging excess insufficient funds fees on customer accounts.
The settlement includes $20.75 million in cash and an equal amount in debt forgiveness. TD Bank also agreed to pay $500,000 in expenses, the papers showed. The settlement requires a judge’s approval, Reuters reported.
The lawsuit was brought against TD in November 2018 by customers who were charged fees for insufficient funds multiple times when merchants repeated attempts to process the same transaction.
A TD spokeswoman declined comment to a Reuters reporter.
Settlement Fund
The agreement proposes TD will make the cash payment into the settlement fund within 14 days of preliminary approval, and forgiveness of uncollected fees will be automatic 90 days after the effective date of the settlement.
On May 14, court documents showed Bank of America Corp agreed to pay $75 million to settle a similar lawsuit.