45 cents short, $96 in fees: Court approves TD insufficient fund fees settlement

By The Canadian Press on February 16, 2024.

TORONTO – The $15.9 million settlement of a class-action lawsuit related to TD Bank Group’s non-sufficient fund fees has been approved by an Ontario Superior Court.

The settlement will compensate customers who were double-charged a $48 fee and comes as scrutiny grows on the charging of such fees, including a push by the federal government to lower them.

The suit focused on the issue of whether TD properly informed customers that they could be charged the fee twice for the same purchase, which can happen if a merchant tries for a second time to get their payment.

For lead plaintiff Tyler Dufault, being 45 cents short on a PayPal bill led to $96 in fees from TD.

Adam Tanel, a partner at Koskie Minsky which brought the class action, says about 105,000 people who were also double-charged should get compensation, while TD has also agreed to amend some practices around the fees.

The other Big Five banks in Canada are also facing similar class actions over the double-charges.

This report by The Canadian Press was first published Feb. 16, 2024.

Companies in this story: (TSX:TD)

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