Got a TD Bank account? Deadline nears to opt out of $15.9M proposed settlement

Customers of Toronto Dominion Bank have until the end of the week to legally opt out of a nearly $16-million class-action settlement.

Toronto law firm Koskie Minsky LLP reached a proposed settlement with TD Bank over non-sufficient funds (NSF) fees back in August 2023.

The case was certified as a class action by the Ontario Superior Court of Justice on Dec. 7, 2022.

If the court approves the settlement at a hearing on Feb. 13, it would see TD pay out a total of $15.9 million, a portion of which would get directly deposited into the bank accounts of eligible class members.

The last day for customers who do not wish to be legally bound by the settlement can ask that they be removed from the class action is Jan. 26. If they opt out, they can keep any rights to sue TD Bank on their own.

Those who want to remain a class action member, but who object to the proposed settlement, also have until Jan. 26 to do so.

Customers who wish either to opt out or challenge the proposed settlement can do so by mailing or emailing the relevant forms found online at kmonline.ca.

1:43 Why short-sellers are taking aim at TD Bank

Eligible customers who do nothing will share the benefits of the settlement — if approved — with an estimated $88 going into their accounts, without having to file any additional paperwork, the law firm said.

People eligible to get paid must be Canadian residents who have an open personal deposit account with TD Bank that has been charged a non-sufficient funds fee by the bank on a re-presented pre-authorized debit transaction between Feb. 2, 2019, and Nov. 27, 2023, according to a Notice of Hearing.

Banks charge NSF fees when there are insufficient funds in an account to cover a cheque or pre-authorized debit.

The class action lawsuit, launched in 2021, alleges TD unlawfully charged customers multiple NSF fees on a single payment made or cheque issued.

TD Bank has denied any wrongdoing or liability and rejected the allegations, but has agreed to the settlement that the law firm said was reached after “lengthy negotiations” and with the help of a mediator.

“We believe that this is an excellent result for the class,” said Adam Tanel, a partner at Koskie Minsky, in a statement.

“It took a lot of work, on both sides, to get this deal done. We’re pleased with the outcome.”