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TD Bank’s overdraft fees are illegal, lawsuit claims

Ridgewood Bank Robbed in Broad Daylight

file photo by Boyd Loving

By Greg Adomaitis | For
on January 10, 2017 at 11:48 AM, updated January 10, 2017 at 4:47 PM

CHERRY HILL TWP. — A Connecticut woman is suing Cherry Hill-headquartered TD Bank over its allegedly “unlawful” overdraft fee that charges users who don’t replenish their bank accounts within 10 days.

Per the class action lawsuit filed Jan. 4 on behalf of Shaina Dorsey by Marlton-based lawyer Stephen DeNittis, the sustained overdraft charge of $20 is imposed after an initial charge of $35 for the overdraft itself and exceeds the limit permitted by the National Bank Act.

“Unlike an initial overdraft fee, the Sustained Fee for Overdrawn Accounts is an additional charge to a customer for which the bank has provided nothing new in the way of services,” the lawsuit reads. “The charge is based solely on the alleged indebtedness to the bank remaining unpaid by the customer for a period of time.”

According to the suit, Dorsey’s checking account went into “overdraft” status in Aug. 15, 2016 and remained that way until Sept. 8, 2016. The $20 fee on Aug. 26, 2016 was in addition to six other fees totaling $210 “for transactions that created her ‘overdraft’ status in the first place.”