FILE PHOTO: TD Bank ATMs can be seen in New York City, United States on March 17, 2020. REUTERS / Jeenah Moon / File Photo
May 18, 2021
By Nichola Saminather
TORONTO (Reuters) -Toronto-Dominion Bank agreed to pay $ 41.5 million (CAD 49.93 million) to settle a class action lawsuit in the United States that charged excessive fees for insufficient funds in customer accounts .
The settlement includes $ 20.75 million in cash and an equal amount in debt relief. TD, Canada’s second largest lender with major activities in the US, also agreed to pay $ 500,000 in expenses. The settlement requires the approval of a judge.
The lawsuit against TD was brought in November 2018 by customers who were repeatedly charged for insufficient funds when merchants repeatedly tried to complete the same transaction.
A TD spokeswoman declined to comment.
TD stock was unchanged at $ 88.35 in morning trade in Toronto, compared to a 0.2% decline in the Toronto stock benchmark.
The agreement provides that TD make the cash payment into the settlement fund within 14 days of preliminary approval. The forgiveness of uncollected fees occurs automatically 90 days after the effective date of the billing.
On May 14, court documents showed that Bank of America Corp agreed to pay $ 75 million to settle a similar lawsuit.
Separately, TD is awaiting a verdict in a court case in Ontario in which the liquidators of the collapsed Antigua Bank of former Texas financier Robert Allen Stanford are demanding $ 4.5 billion in damages.
(1 Canadian dollar = $ 0.8311)
(Reporting by Nichola Saminather; editing by Nick Zieminski)
This article originally appeared on www.oann.com