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TD Bank Secured Credit Card Promises of “Graduation” Class Action

TD Bank offers a “secured” credit card to those who need to rebuild their credit. It promises the card holders to change the card to an unsecured one after certain conditions are fulfilled. But the complaint for this class action alleges that TD Bank does not keep those promises.

The National Class for this action is all holders of a TD Bank Cash Secured Credit Card who, within the applicable statute of limitations, maintained their accounts for seven consecutive billing cycles without going into default and were not timely “graduated” to an unsecured TD Bank credit card. New York and New Jersey Subclasses have also been proposed.

With a secured credit card, the card holder provides a deposit in the amount of credit granted by the card. TD Bank requires that those applying for the card open a TD Simple Savings Account, which will hold their security deposit. These funds are then frozen, and the customer cannot access them while the secured card account is open.

TD Bank thus runs no risk with the credit card, because an amount equivalent to the amount that can be borrowed on the card is always in its possession.

TD Bank’s webpage for the arrangement, which displays the “contractual document,” tells consumers that “if they use and maintain their secured credit card and keep it in good standing for seven consecutive billing cycles, they can ‘graduate’ to an unsecured TD Bank Credit Card.”

This “graduation” involves several things. First, card holders can get back access to their funds in the TD Simple Savings Account. Second, they can get a partial refund of the annual fee they were charged for the secured credit card. Finally, reports sent to credit reporting agencies will boost their credit scores.

But the complaint alleges, “In reality, however, TD Bank refuses to allow consumers to graduate to an unsecured TD Bank Credit Card…”

One of the plaintiffs in this case, Natalie Campagna, for example, obtained a secured credit card with TD after reading about its clear “graduation” offer. She got her secured TD card in August 2019, for an annual fee of $29, and deposited $2,000 with the bank to secure the card.

In March 2020, she called to ask about “graduating” to an unsecured card. A “customer service specialist” told her that she would not be “graduating” as promised.

The complaint alleges, “The specialist also told Ms. Campagna that ‘she didn’t know why the agreement is still on the web site’ because the process of graduating to an unsecured credit card is not undertaken after seven months and the process takes into account many factors which are not included in the form contract.”

The specialist also told her, the complaint says, that “hardly anyone ever graduates due to the lengthy process involving many outside factors.”

On a “much less prominent location on the bank’s website,” TD Bank says the waiting period is actually twenty-four consecutive billing cycles.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

TD Bank Secured Credit Card Promises of “Graduation” Complaint

December 8, 2020

TD Bank offers a “secured” credit card to those who need to rebuild their credit. It promises the card holders to change the card to an unsecured one after certain conditions are fulfilled. But the complaint for this class action alleges that TD Bank does not keep those promises.

TD Bank Secured Credit Card Promises of “Graduation” Complaint

Case Event History

TD Bank Secured Credit Card Promises of “Graduation” Complaint

December 8, 2020

TD Bank offers a “secured” credit card to those who need to rebuild their credit. It promises the card holders to change the card to an unsecured one after certain conditions are fulfilled. But the complaint for this class action alleges that TD Bank does not keep those promises.

TD Bank Secured Credit Card Promises of “Graduation” Complaint
Tags: Breach of Contract, Failure to Honor Terms of Agreement, Your Bank