Canadian Residents: Were You Charged Overdrafts by TD Bank?
Last Updated on June 26, 2017
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At A Glance
- This Alert Affects
- Canadian residents who were charged unfair overdraft fees by TD Bank or any other bank throughout Canada.
- Damages
- Consumers who were unfairly charged overdraft fees may be able to seek compensation for these charges.
- Company(ies)
- TD Bank Canada
- Additional Details
- More than a dozen U.S. banks have reached multi-million dollar settlements stemming from class actions lawsuits which claimed that they rearranged their customers' transactions to maximize the amount of overdraft fees they can charge.
Canadian customers of TD Bank who were unfairly charged overdraft fees after their transactions were rearranged may be able to participate in a potential lawsuit to seek compensation for these charges. It has been alleged that TD Bank and other banks in Canada have been processing their customers’ transactions in a highest-to-lowest order to maximize the number of overdraft fees they can charge. This practice causes the consumer's account to be drained more quickly, and allows the bank to collect more fees than they would have if they processed the transactions in the order in which they were made.
If you are a Canadian resident who was charged unfair overdrafts by TD or any other bank in Canada, you may have legal recourse to collect compensation for your unfair overdraft fees.
Unfair Overdraft Bank Practices Lead to Multi-Million Dollar Settlements in States
The practices allegedly being carried out being TD Bank Canada and other Canadian banks have been cited in a number of U.S. class action lawsuits. The majority of the U.S. suits were consolidated to Miami, to allow for consistent rulings and to have the cases resolve in an efficient manner. The litigation surrounding unfair overdraft charges not only gave consumers a chance to recover compensation for these fees, but also gave light to these practices. As a result of the growing complaints regarding unfair overdraft bank practices, the Consumer Financial Protection Bureau launched an investigation into several major banks to examine transaction re-ordering; the impact of overdraft fees on low-income and young consumers; deceptive marketing materials; and confusing customer communications.
Many of the U.S. lawsuits regarding overdraft fees have been resolved, resulting in the following settlement amounts:
- US Bancorp: $55 million
- TD Bank: $62 million
- PNC: $90 million
- Chase: $110 million
- Citizens Bank: $137 million
- Bank of America: $410 million
Unfair Overdraft Bank Charges by a Bank in Canada?
If you were unfairly charged overdraft fees in Canada, you may be able to participate in a potential class action lawsuit to recover compensation. It is believed that Canadian banks are engaging in the same practices carried out by many major U.S. banks which, as a result of their actions, were hit with multi-million dollar lawsuits.
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