A final court approval is all that stands in the way of TD Canada Trust making restitution for fees charges for having insufficient funds.
A tentative deal in a class action suit involving Toronto-Dominion Bank and The Canada Trust Company has been reached.
The suit was brought on behalf of a customer who attempted to make an online purchase through PayPal in 2020 only to have it rejected by TD Bank which charged the customer a $48 NSF fee.
A second $48 charge was issued four days after the payee resubmitted the transition to the bank without the customer’s knowledge.
An Ontario Court, last year, allowed the Class Action to proceed after ruling the language explaining the bank’s practice of charging NSF fees was ambiguous when it applied to a third-party payee.
Lengthy negotiations and a mediator help in a proposed settlement being reached.
Under the terms, TD will pay a total of $15.9 million.
If approved by the Court, the funds will be deposited into the bank accounts of eligible bank customers.
A hearing is scheduled for February for the Court to rule on the settlement.
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