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.
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.
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)
