TD Bank customers may claim one-time payments from $32m ‘overdraft’ fee settlement – and you don’t need to file a claim

TD Bank customers can collect their piece of a $32 million settlement without filing a claim.

The settlement will benefit current and former bank customers who were charged overdraft fees.

A lawsuit claimed that TD Bank charged members APSN overdraft fees despite them having a positive account balance.

The bank allegedly approved transactions when customers had a positive balance but hit them with APSN fees afterward.

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

The bank denied wrongdoing but agreed to a $32 million settlement to resolve the lawsuit.

Nearly $22 million of the settlement fund will be returned to consumers who have paid APSN fees.

The remaining $10.25 million will go toward outstanding balances.

Class members can receive a proportional share of the settlement fund based on how much they paid in fees.

Payments will vary, and there is no estimate of how much each person will get.

No claim forms need to be filed, as affected individuals will automatically receive a check or equivalent credit.

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

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Bank of America is facing a similar settlement over hidden wire transfer fees.

A lawsuit alleges that BOA violated its account agreements by charging a $15 fee on incoming wire transfers, which the bank failed to properly disclose to customers.

It claims the bank hid these fees to profit from account holders without their knowledge or consent.

Current and former bank customers with checking or savings accounts may be eligible.

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.

The bank agreed to pay $21 million to settle the litigation but denied any wrongdoing.

To be eligible for a payment, account holders must have been charged a wire transfer fee between March 8, 2019, and August 31, 2023.

Customers will receive proportional shares of the settlement fund depending on the fees they were charged.

There are no specific estimates for how much each class member will be paid.

Eligible customers must file a claim by September 21.

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