A class-action settlement that would see Toronto Dominion Bank pay out nearly $16 million has been approved – one of two multi-million-dollar payouts by the bank given the green light in recent weeks.
The Ontario Superior Court of Justice granted the approval Thursday after a hearing this week for the settlement reached between TD Bank and Toronto law firm Koskie Minsky LLP over non-sufficient funds (NSF) fees.
In its decision the court concluded that the “settlement, overall, is excellent, and in the best interests of the class.”
A proposed settlement was reached in August 2023, less than a year after the court certified the case as a class action.
Eligible customers will now share the benefits of the settlement, with an estimated $88 going into their accounts, according to the settlement agreement shared by the law firm with Global News.
That amount will be directly deposited into customers’ accounts without having to file any additional paperwork, the law firm says.
The total payout is worth $15.9 million but class counsel fees and disbursements, third-party litigation funding fees, an honorarium of $10,000 to the representative plaintiff and any charitable donations will be deducted and the rest will be available for distribution.
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.
Class members had until Monday to legally opt out of or object to the proposed settlement.
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.
This is not the only class-action settlement involving TD Bank that has been approved in court in recent weeks.
On Jan. 30, the Superior Court of Quebec approved a $22-million class-action settlement.
That lawsuit alleged that TD released documents and made statements containing false and misleading information relating to its Canadian Retail Business Segment and the implementation of a Pressure Selling Program. TD has not admitted any liability.
Members eligible for the payout include all persons and entities who purchased securities of TD Bank on or after Dec. 3, 2015 and held all or some of those securities until March 9, 2017.
The last day to claim compensation is May 13 and this can be done online.