If You Incurred One or More Overdraft Fees in Connection with Your TD Bank Personal or Business Account, Your Carolina First Bank Account, and/or Your Mercantile Bank Account, You May Be Entitled to Benefits from a Proposed Class Action Settlement.

Puede obtener una copia de la notificación en Español aqui.

In January 2020, the United States District Court for the District of South Carolina (“the Court”) granted Final Approval of a $70 million settlement in a lawsuit against TD Bank, N.A. (“TD Bank”) called IN RE: TD BANK, N.A. DEBIT CARD OVERDRAFT FEE LITIGATION, Case No. 6:15-mn-02613-BHH (D.S.C.), claiming that TD Bank, Carolina First Bank, and Mercantile Bank, a brand name of Carolina First Bank used in Florida, assessed Overdraft Fees in a manner inconsistent with customer account agreements and applicable laws (the “Action”). TD Bank had acquired The South Financial Group, the holding company for Carolina First and Mercantile (together, “Carolina First”), in 2010.

The Action challenged several bank practices:

  • TD Bank’s practice of assessing Overdraft Fees on Personal and Business Accounts based on the Account’s Available Balance rather than its Ledger Balance;
  • TD Bank’s assessment of Overdraft Fees for ATM or One-Time Debit Card Transactions on Personal Accounts;
  • TD Bank’s assessment of Sustained Overdraft Fees on Personal and Business Accounts;
  • TD Bank’s assessment of Overdraft Fees for Uber or Lyft ride-sharing transactions on Personal Accounts while an account holder was not enrolled in TD Debit Card Advance; and
  • Carolina First’s practices of (1) High-to-Low Posting and (2) assessing Overdraft Fees based on the Account’s Available Balance rather than its Ledger Balance.

TD Bank denies liability for each of the claims, and maintains that the challenged overdraft practices complied with customer agreements and applicable laws.

The Settlement Agreement provides that current and former holders of TD Bank Personal and/or Business Accounts and former holders of Carolina First Accounts who incurred Overdraft Fees may be eligible for a payment by check or account credit (“Settlement Payment Amount”). In addition, members of the Settlement Classes whose Accounts were closed with amounts owed to TD Bank may be eligible for reductions in their outstanding balances (“Overdraft Forgiveness Amount”).

Recently it was discovered that due to a data processing error, some members of the Settlement Classes referred to as the Regulation E Class and the TD Available Balance Business Class did not receive notice of the Settlement and an opportunity to receive benefits (“Omitted Class Members”). TD Bank and Settlement Class Counsel discovered this error and brought it to the Court’s attention. The Court has ordered this notice be provided to Omitted Class Members so that they will have an opportunity to participate in the Settlement.

As an Omitted Class Member, you should have received a mailed Notice with an enclosed check representing your share of the Settlement. You have three options: (1) cash the check and give up your right to bring your own lawsuit against TD Bank about the claims in the case; (2) exclude yourself from the Settlement and retain your right to bring a lawsuit against TD Bank about the claims in the case; or (3) object to the Settlement (you can cash the check enclosed with your mailed Notice). These options and the consequences of exercising them are explained below. Please read this notice carefully so that you will understand your rights and options as a Settlement Class Member.

Read this website carefully. This website advises you of the benefits that may be available to you under the Settlement and your rights and options as a Settlement Class member.


Summary of Your Legal Rights and Options in This Settlement
Cash the Check Enclosed with Your Mailed Notice or Do Nothing

If you cash the check enclosed with your mailed Notice or do nothing, you will give up your right to bring your own lawsuit against TD Bank about the claims in this case.

If you are a member of the TD Available Balance Business Class whose Account was closed with amounts owed to TD Bank, you may be eligible to benefit from the Overdraft Forgiveness Amount. If you are eligible and do not exclude yourself from the Settlement, you will receive this benefit automatically.

Exclude Yourself from the Settlement

Receive no benefit from the Settlement. This is the only option that allows you to retain your right to bring any other lawsuit against TD Bank about the claims in this case. If you wish to exclude yourself from the Settlement, do not cash the check enclosed with your mailed Notice.

Object

Write to the Court and the lawyers for both sides if you do not like the Settlement. Cashing the check enclosed with your mailed Notice does not waive your right to object to the Settlement.


These rights and options—and the deadlines to exercise them—are explained in this website.