You might be eligible for a portion of a proposed $15.9 million TD Bank class action settlement

If you’re a TD Bank customer, you may be entitled to part of a $15.9 million settlement due to a recent class action lawsuit.

In December, the law firm Koskie Minky LLP announced that a proposed settlement had been reached for a class action lawsuit regarding repeated non-sufficient funds (NSF) fees.

The lawsuit alleged that customers were being charged multiple NSF fees without proper notification that this was a possibility. TD Bank has denied liability, but agreed to settle after mediation in August.

The proposed settlement of $15.9 million hasn’t been approved yet—on February 12, a hearing will be held to decide if it will be approved. If approved, TD will deposit funds owed directly into the bank accounts of eligible class members, meaning that if you’re eligible, you don’t have to do anything to collect your piece of the pie.

Adam Tanel, a partner at Koskie Minsky, said that they were happy class members wouldn’t have to “jump through any additional hoops.”

“We believe that this is an excellent result for the class,” he said in a press release. “It took a lot of work, on both sides, to get this deal done. We’re pleased with the outcome.”

An NSF fee is applied when a cheque bounces or a customer makes a payment to the bank that is rejected because of insufficient funds.

TD customers were charged $48 in this situation according to the provision in the bank’s “standard-form consumer banking agreement” at the time of the lawsuit’s launch, court documents laid out. But in some situations, customers were finding themselves saddled with a second NSF fee for the same rejected payment. The lawsuit argued that the possibility of repeated NSF fees for one payment was not something customers were properly informed of.

The class action was first launched in 2021 and was certified on Dec. 7 by the Ontario Superior Court of Justice. It includes those in Canada who are or were holders of a personal deposit account with TD Bank since Feb. 2, 2019, and whose account had been charged with an NSF fee in that time.

Although funds will be deposited automatically if the proposed settlement is approved, eligible class members are able to opt out if they choose.

Koskie Minsky LLP has opt-out forms available on their website, as well as forms to file an objection if you wish to remain a part of the class, but object to the proposed settlement. Both forms are due by Jan. 26. Objections will be heard at the approval hearing in February.