Toronto-Dominion Bank reaches $41.5 million settlement in U.S. excessive fees lawsuit

TORONTO (Reuters) – Toronto-Dominion Bank agreed to pay $41.5 million (C$49.93 million) to settle a U.S. class action lawsuit for charging excess insufficient funds fees on customer accounts, court documents showed.

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FILE PHOTO: TD bank ATM machines are seen in New York

The settlement includes $20.75 million in cash and an equal amount in debt forgiveness. TD, Canada’s second largest lender with large operations in the United States, also agreed to pay $500,000 in expenses, the papers showed. The settlement requires a judge’s approval.

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The lawsuit was brought against TD in November 2018 by customers who were charged fees for insufficient funds multiple times when merchants repeated attempts to process the same transaction.

A TD spokeswoman did not immediately respond to a request for comment.

On May 14, court documents showed Bank of America Corp agreed to pay $75 million to settle a similar lawsuit.

Separately, TD is awaiting judgment in a trial in an Ontario court in which the liquidators of the collapsed Antigua bank of former Texas financier Robert Allen Stanford are seeking $4.5 billion in damages.

(1 Canadian dollar = $0.8311)

(Reporting By Nichola Saminather; Editing by Nick Zieminski)