Class Action Lawsuit Claims TD Bank Routinely Violates Its Own Policy to Refund OD Fees On Accounts Brought Back to Positive

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A proposed class action lawsuit claims that TD Bank has regularly failed to uphold its own policy to refund overdraft fees should an account be brought into a positive balance within the “grace period” specified by the bank.

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According to the 14-page TD Bank lawsuit, the defendant’s overdraft grace period policy states that if an account that is overdrawn by more than $50 but has been returned to a balance of zero dollars or more at 11:00 pm ET the next business day, any overdraft fees assessed to the account will be automatically refunded.

However, the suit alleges that, between October 11, 2022 and the present, TD Bank has regularly broken its refund promise by holding onto $35 overdraft fees that, per its own policy, should have been returned to account holders who restored their account balances to $0 or more within the relevant time period.

“For people living paycheck to paycheck, including many members of the proposed Class (defined below), TD Bank’s failure to abide by its promise to refund the overdraft fees at issue in this case has had a serious effect on their everyday lives,” the complaint stresses.

The lead plaintiff in the class action lawsuit claims that, for example, on December 23, 2024, his account balance sat at -$133.34. The following day, the case says, the consumer received a $300 deposit and, on the same day, a withdrawal was made for $150, all before 11:00 pm ET. As such, by 11:00 pm on December 24, 2024, one business day after the plaintiff’s account balance was overdrawn, his account balance was $16.66 and thus no longer overdrawn, the suit contends.

The complaint says that the plaintiff should have been refunded the overdraft fees assessed to his account due to its overdrawn balance on December 23, 2024, but TD Bank failed to do so, in violation of its own “overdraft grace” policy.

“Plaintiff’s experience is shared by millions of other TD Bank account holders nationwide, each of whom incurred at least one unrefunded $35.00 overdraft fee attributable to an account that was overdrawn by more than $50.00 but that had an available balance of at least $0.00 as of 11:00 p.m. ET on the next business day,” the class action alleges.

The TD Bank class action lawsuit seeks to represent anyone in the U.S. who, between October 11, 2022 and the present, had a personal TD Bank deposit account that was overdrawn by $50.01 or more, was assessed one or more $35 overdraft fees as a result and restored their account to a balance of zero dollars or more by 11:00 pm ET the next business day, but never received a refund for the relevant overdraft fee(s) in accordance with TD Bank’s grace period policy.

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