TD Bank Facing Excessive Overdraft Charges Class Action Lawsuit

Santa Clara, CA: TD Bank is facing a potential class action lawsuit alleging it “unlawfully” applies overdraft fees that penalize customers who don’t replenish their overdrawn bank accounts within 10 days.

Filed on behalf of Shaina Dorsey and all those similarly situated, the lawsuit contends that the sustained overdraft charge of $20 is imposed on customers’ accounts after an initial charge of $35 for the overdraft itself, and exceeds the limit permitted by the National Bank Act.

"Unlike an initial overdraft fee, the Sustained Fee for Overdrawn Accounts is an additional charge to a customer for which the bank has provided nothing new in the way of services," the lawsuit states. "The charge is based solely on the alleged indebtedness to the bank remaining unpaid by the customer for a period of time."

According to the complaint, Dorsey's checking account went into "overdraft" status in August 15, 2016 and remained that way until September 8, 2016. The $20 fee on August 26, 2016 was in addition to six other fees totaling $210 "for transactions that created her 'overdraft' status in the first place."

The class action suit claims that the fees are technically interest charged at an illegal rate and, when factoring for the legally permitted rates, are tens of times greater than what could be imposed.

The lawsuit seeks plaintiffs who use TD Bank and were charged with the extended overdraft charges. Plaintiffs are represented by Stephen P. DeNittis of DeNittis of DeNittis Osefchen P.C.

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Reader Comments

Posted by
rozalen jenkins
omg. that has been happening to my account too. when I asked about it they double-talked an explanation to me about the order of items shows differently on my computer when I pull up my account, than it does on their records.

Posted by
Penny B.
TD bank has been rearranging the order of transactions. I have been monitoring my account several times a day. On most occasions I will see transactions in a different order than they were on my previous check in. They have been putting debit transactions that I know I made after a direct deposit, yet I will find them changed of their order reflecting the debits first. Therefore plunging me into overdraft fees...usually numerous. Also when checks I've written suddenly clear overnight. I was told by a rep. that she was even unaware that they process checks at 11:00 pm.
Its rediculous how they manipulate your account for their benefit. I'm starting to miss using a ledger, it was simpler without all the digital crap giving the banks the upper hand to manipulate balances in their favor.

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