An auto-pay bill comes due in your account, and the bank refuses the transaction because you don’t have enough money to pay it. How many non-sufficient funds (NSF) fees should you be charged for this? One should be enough, right? But if your bank is TD Bank, you might find yourself charged two or three such fees in the coming days for the same auto-payment item.
But if your bank is TD Bank, you might find yourself charged two or three such fees in the coming days for the same auto-payment item.
You can set up an auto-payments in your account for regularly-occurring bills—for your auto loan or your Internet service, for example. When the auto-payment date comes, if your account doesn’t have enough to pay the bill, the bank rejects it. Naturally, you’ll want to wait until you have more money in the account before trying to pay that bill again. But TD Bank may decide, without any request from you or notice to you, to retry the transaction. And if the transaction fails to go through again, then you owe another NSF fee.
Is this fair? We’re investigating to see if a class action is needed.
Some banks, in fact, permit themselves to do this. They put it in the fine print in their deposit agreements, fee schedules, or other documents.
TD Bank does not appear to mention NSF fees in its Personal Deposit Account Agreement. Its Fee Schedule lists “Overdraft – return (NSF)/Overdraft – paid (per item)” at $35.00. The “per item” notation is important. Some legal experts believe that an item is, for example, “December Auto Payment.” If that’s true, they contend, then a single item remains the same item, no matter how many times the bank submits it for payment. The fee schedule does not list a “Fee Per Try” or “Retry Fee” or similar charge.
Is TD Bank charging more than its agreements permit?
TD Bank, NA was founded as the Portland Savings Bank, in Maine in 1852, and later became Banknorth. When it acquired Commerce Bank, it renamed itself TD Bank. It is a national bank and a subsidiary of the Canadian Toronto-Dominion Bank. Although it operates primarily along the East Coast, it is the eighth-largest bank in the US in total assets.
It has been involved in a few public controversies. These include a data breach in 2012, when it allegedly misplaced unencrypted backup tapes; a class action claiming the bank had violated the Telephone Consumer Protection Act; a lawsuit claiming its coin-counting machines were not accurate; and a 2017 report that it had blocked customer purchases of Bitcoin and other cryptocurrencies.
If you have a Santander account in the US and you’ve been charged multiple NSF fees on a single item, we’d like to hear from you. Fill out the form on this page and let us know what your experience was.Article Type: Investigation