Class action lawsuit against TD Bank: Company charges fees for attempted deposits

Overview of the TD Bank class action lawsuit:

• WHO: Plaintiff Christine Manougian has filed a class action lawsuit against TD Bank North America.
• Why: TD Bank allegedly charges unfair fees to account holders whose deposit attempts fail.
• Where: The class action lawsuit against TD Bank was filed in federal court in New York.

A new class action lawsuit against TD Bank alleges that the bank routinely charges fees when customers unsuccessfully attempt to make a deposit without informing them of these potential costs.

Plaintiff Christine Manougian, who has an account with TD Bank, says the bank never informed her that failed deposit attempts would incur fees for returning cashed or deposited items.

Unlike check writers, who generally know the amount in their bank accounts, check recipients generally have no way of knowing whether the check they are trying to deposit will bounce.

“Because the depositor could not reasonably have known that the check was bounced, it is unfair to charge the depositor a fee to return the check,” TD Bank’s class action lawsuit states.

However, TD Bank regularly charges fees when account holders try to cash a check that bounces, Manougian claims.

Plaintiff: TD Bank fees are predatory and unfairly punish customers

Manougian claims she attempted to deposit a check into her TD Bank account in March 2022 and had no reason to believe it would bounce. She says she never received a provisional credit for the amount of the deposit and did not use any portion of the deposit attempt.

The check she tried to cash was returned unpaid and she was charged a $15 fee by TD Bank.

In May 2022, she said, she ran into a similar situation and was charged another $15 fee by TD Bank.

Manougian says TD Bank’s fees are usurious and “nothing more than disguised revenue streams that punish innocent account holders for the actions of others.”

It refers to a Notice from the Consumer Finance Protection Bureau, which is raising concerns about fraudulent practices related to fees for returning deposited items when those fees are disproportionate to the cost to the bank of processing the bounced check or when bank customers are not adequately informed about those fees. The agency has reportedly indicated that it will implement stricter controls on these fees.

The TD Bank class action lawsuit asserts claims for breach of contract, implied covenant of good faith, unjust enrichment, and violation of the New York State Consumer Protection Law.

Recently, a federal judge provisionally approved a sum of 32 million Settlement in TD Bank class action lawsuit because of allegations that the company had illegally charged overdraft fees.

Have you been charged fees by TD Bank when you tried to cash a bad check? Tell us about your experience in the comments.

Manougian is represented by Lisa R. Considine and Oren Faircloth of Siri & Glimstad LLP.

The Class action lawsuit over TD Bank fees Is Christine Manougian v. TD Bank North AmericaCase No. 1:24-cv-04429, in the U.S. District Court for the Eastern District of New York.

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