The complaint for this class action faults TD Bank, NA for its “deceptive and incomplete marketing materials” on its Zelle money transfer service. The complaint alleges that TD bank advertises Zelle as a “free” service, even though it claims users can inadvertently incur overdraft (OD) fees and non-sufficient funds (NSF) fees.
The class for this action is all TD Bank accountholders who used the Zelle Service and incurred overdraft or NSF fees as a result of a Zelle transaction on that account. A Florida Subclass has also been defined for those in the above class who are located in Florida.
Zelle was created in 2017 by seven of the largest banks in the US as a fast way to make digital money transfers. The complaint claims it has become the most widely used money transfer service in the US.
The complaint alleges TD Bank presents Zelle as a “free” service that “won’t cost you any extra money for the transaction.” “In short,” the complaint claims, “TD Bank markets Zelle as an effortless, totally free way to send money. This is false. In fact, there are huge, undisclosed risks of using the service.”
Zelle can in fact work as a credit device, the complaint alleges, “sending money consumers don’t have at the cost of high OD Fees assessed by their banks.” But it claims that TD Bank never warns that this is possible.
The extension of credit via overdrafts, paid for by OD fees, is very expensive. The complaint quotes a 2008 FDIC Study of Bank Overdraft Programs as saying that “a $27 fee charged for a single advance of $60 that was repaid in two weeks roughly translated into an APR of 1,173 percent. Many surveyed banks (24.6 percent) assessed additional fees on accounts that remained in negative balance status in the form of flat fees or interest charged on a percentage basis.”
The complaint cites TD Bank’s representations about Zelle, including a paragraph that begins, “Your money travels safely from the minute you hit send to the minute it hits their account.” The complaint alleges, “The references to ‘your money’ can have only one meaning: a Zelle transfer moves funds already possessed and owned by the accountholder—not loaned funds from the Bank.”
“TD Bank’s representations regarding Zelle—which all users view during the signup process” the complaint claims, “are false and contain material omissions.”
The counts include breach of contract including the covenant of good faith and fair dealing, unjust enrichment, and violation of the Florida Deceptive and Unfair Trade Practices Act.
Article Type: LawsuitTopic: Contract
Most Recent Case Event
TD Bank Overdraft Fees with Use of Zelle Complaint
June 3, 2022
The complaint for this class action faults TD Bank, NA for its “deceptive and incomplete marketing materials” on its Zelle money transfer service. The complaint alleges that TD bank advertises Zelle as a “free” service, even though it claims users can inadvertently incur overdraft (OD) fees and non-sufficient funds (NSF) fees.
TD Bank Overdraft Fees with Use of Zelle ComplaintCase Event History
TD Bank Overdraft Fees with Use of Zelle Complaint
June 3, 2022
The complaint for this class action faults TD Bank, NA for its “deceptive and incomplete marketing materials” on its Zelle money transfer service. The complaint alleges that TD bank advertises Zelle as a “free” service, even though it claims users can inadvertently incur overdraft (OD) fees and non-sufficient funds (NSF) fees.
TD Bank Overdraft Fees with Use of Zelle Complaint