TD Bank Unauthorized Account Closings and Reopenings Class Action

A few years ago, the country was stunned by revelations that Wells Fargo had opened a large number of fraudulent accounts in the names of existing customers. This class action alleges that TD Bank, NA has done something similar, “re-opening accounts in the names of consumers without lawful authority.

The class for this action is all persons who, within the applicable statute of limitations period, had a checking or savings account opened in their name by TD Bank without authorization.

After news of the Wells Fargo scandal broke, other banks reviewed their practices to see if anything similar had happened at their institutions. The complaint says, “Following an internal audit in November 2016, a source familiar with the process indicated that the TD Bank did not find ‘anything systemic’ as was the case with Wells Fargo.” However, the complaint claims that this is not true.

The plaintiff in this case, Judith J. Jimenez, had a TD Simple Checking Account with TD Bank. She’d opened it in 2005, with Mercantile Bank, which TD Bank acquired in 2010. The account’s Personal Deposit Account Agreement authorized the bank to close the account at any time if it wished to do so.

In April 2020, TD Bank closed Jimenez’s account. At the time, it had a positive balance of $342.65. TD Bank issued a check for this amount, which it mailed to Jimenez. Her April bank statement indicated that the account was closed and the positive balance had been withdrawn on April 15.

Other than the notation on the statement, TD Bank did not provide Jimenez with any other information about the closing of her account. Jimenez’s account was in good standing, the complaint says, and her financial affairs were not in disarray.

Two days after TD Bank closed the account, it reopened it, without Jimenez’s knowledge or permission.

Jimenez had written a $35 check before the account was closed, and the bank charged her a Returned Fee of $35 for rejecting it from the new account and then an Overdraft Fee of $35 for paying it. This plus a maintenance fee of $4.99 on the new account added up to $74.99, the complaint alleges, that represented pure profit for TD.

When he tax refund was deposited on April 22, the bank took out these fees and reversed a $12.31 provisional credit paid to the old account, for a total of $87.30.

On April 28, the bank again closed the account, withdrew the balance, and sent a check to Jimenez.

Jimenez sent a letter to TD Bank on April 22, asking for an explanation of why her account had been closed. However, the complaint claims that the bank has not responded.

The complaint alleges conversion, breach of contract, and breach of the covenant of good faith and fair dealing, among other things.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

TD Bank Unauthorized Account Closings and Reopenings Complaint

July 24, 2020

A few years ago, the country was stunned by revelations that Wells Fargo had opened a large number of fraudulent accounts in the names of existing customers. This class action alleges that TD Bank, NA has done something similar, “re-opening accounts in the names of consumers without lawful authority.

TD Bank Unauthorized Account Closings and Reopenings Complaint

Case Event History

TD Bank Unauthorized Account Closings and Reopenings Complaint

July 24, 2020

A few years ago, the country was stunned by revelations that Wells Fargo had opened a large number of fraudulent accounts in the names of existing customers. This class action alleges that TD Bank, NA has done something similar, “re-opening accounts in the names of consumers without lawful authority.

TD Bank Unauthorized Account Closings and Reopenings Complaint
Tags: Opening unauthorized accounts, Unlawful Practices, Your Bank