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TD Bank NSF and OD Fees Charged on Same Item Class Action

When an item is presented against an account with insufficient funds, TD Bank, NA has two choices: It can pay the item, charging the customer an overdraft (OD) fee of $35, or it can return the item, charging the customer a nonsufficient funds (NSF) fee of $35. However, the complaint for this class action alleges that TD Bank sometimes ends up imposing both fees on a single item. The complaint claims that TD’s Account Documents permit it to charge only a single fee on a single item.

The class for this action is all TD Bank checking accountholders in the US who, during applicable statute of limitations until April 1, 2021, were charged an NSF fee and an OD fee on the same item.

The plaintiff in this case, Jill Abercrombie, claims that TD Bank has breached its agreements by charging her one or more NSF fees, or an NSF fee and an OD fee, on a single item.

For example, Abercrombie tried to make a transfer of $100 to Capital One, on February 4, 2021, through an Automated Clearinghouse (ACH) transaction. TD Bank rejected the transaction and charged her an NSF of $35.

Four days later, on February 8, TD Bank processed the item again, without Abercrombie’s knowledge. Her account still did not have sufficient funds, but this time, TD Bank paid the item and charged her another $35, this time as an OD fee.

The bank therefore charged Abercrombie $70 to pay a single $100 item to Capital One. The complaint alleges that this was “a payment it could have simply authorized into overdraft and charged one fee at the outset.”

According to the complaint, the Account Documents “explicitly promise that a single OD or NSF Fee will be assessed per ‘item’—defined as a customer request for payment or transfer—when in fact TD Bank regularly charges two or more fee[s] per item.” It also quotes the Personal Fee Schedule as saying “Overdraft—return (NSF)/overdraft—paid (per item)……$35.00[.]”

The complaint contends, “The plain language of the fee schedule groups ‘Overdraft—return (NSF)’ and ‘Overdraft—paid’ together and promises that only one of such fees will be assessed ‘per item.’”

The complaint further quotes the Account Agreement as saying, “An ‘item’ includes a check, substitute check, purported substitute check, remotely created check or draft, electronic transaction, draft, demand draft, image replacement document, indemnified copy, ATM withdrawal or transfer, debit card point-of-sale transaction, pre-authorized debit card payment, automatic transfer, telephone-initiated transfer, ACH transaction, …and any other instruction or order for the payment, transfer, deposit or withdrawal of funds.”

The complaint alleges, “An ‘item’ like a check or ACH transaction, in other words, is a request for payment by the accountholder. It does not become a new ‘item’ when it is later reprocessed by TD Bank.”

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

TD Bank NSF and OD Fees Charged on Same Item Complaint

July 6, 2021

When an item is presented against an account with insufficient funds, TD Bank, NA has two choices: It can pay the item, charging the customer an overdraft (OD) fee of $35, or it can return the item, charging the customer a nonsufficient funds (NSF) fee of $35. However, the complaint for this class action alleges that TD Bank sometimes ends up imposing both fees on a single item. The complaint claims that TD’s Account Documents permit it to charge only a single fee on a single item.

TD Bank NSF and OD Fees Charged on Same Item Complaint

Case Event History

TD Bank NSF and OD Fees Charged on Same Item Complaint

July 6, 2021

When an item is presented against an account with insufficient funds, TD Bank, NA has two choices: It can pay the item, charging the customer an overdraft (OD) fee of $35, or it can return the item, charging the customer a nonsufficient funds (NSF) fee of $35. However, the complaint for this class action alleges that TD Bank sometimes ends up imposing both fees on a single item. The complaint claims that TD’s Account Documents permit it to charge only a single fee on a single item.

TD Bank NSF and OD Fees Charged on Same Item Complaint
Tags: Insufficient or Non-Sufficient Funds Fees, More Than One Fee Assessed on a Single Item/Transaction, Overdraft Fees, Your Bank