TD Bank customers can claim one-time payment from $32m overdraft fee settlement – you’ll automatically get a check

CONSUMERS have the opportunity to receive payments or account credits from $32 million dollar class action lawsuit involving a popular banking company.

The settlement benefits current and former TD Bank account holders who were affected by overdraft fees.

The bank charged certain members with “APSN” fees between June 27, 2019, and September 30, 2022.

Banks charge APSN fees on specific card transactions. These fees occur when a transaction is authorized when the account balance is positive, but the transaction is posted later when the balance is negative due to intervening transactions.

According to the lawsuit, TD Bank violated its account terms by assessing unauthorized overdraft fees on transactions with a positive, sufficient balance.

TD Bank is one of the largest banks in the US, providing over 10 million customers with a "range of retail, small business and commercial banking products" and services at more than 1,100 locations, according to their website.

TD Bank hasn’t admitted any wrongdoing but agreed to pay $32 million to resolve the overdraft fee class action lawsuit.

The court has not ruled in favor of either side yet.

Under the terms of the settlement, nearly $22 million of the settlement fund will provide payments to consumers who paid APSN fees.

Class members can receive a proportional share of the net settlement fund based on the amount they paid in APSN fees during the class period.

No exact payment estimates were announced at this time.

Current TD account holders will receive their payments as account credits while class members without current TD Bank accounts will receive check payments.

The remaining $10.25 million of the settlement comes from reductions in outstanding balances owed.

TD Bank agreed to forgive outstanding balances linked to APSN fees.

Member who do nothing will receive a payment from the settlement as long as they do not opt out of the settlement terms.

What's a class-action settlement?

Class action lawsuits offer groups of people, or 'classes,' a way to band together in court.

These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.

When a suit becomes a class action, it extends to all "class members," or people who may have similar complaints to those who filed the suit.

Companies often settle class actions - offering payment to class members who typically waive their right to pursue further legal action by accepting money.

These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.

Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company's doorstep.

However, members can choose to exclude themselves from the settlement or “opt out.”

This means individual claims against TD Bank will be kept, but those who opt out will not receive a payment or other settlement benefits.

The deadline to object to the settlement or opt out is September 14, 2024.

The final approval hearing for the settlement is scheduled for October 10, 2024.

Affected individuals do not need to fill out a claim form. Class members who do not exclude themselves will automatically receive a check or account credit.

Meanwhile, some Americans could take advantage of a one-time distribution from a recent wage settlement.

And Americans can get up to $5k from a $2.25 million settlement surrounding Atlantic General Hospital's data breach.