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Toronto-Dominion Bank's U.S. retail unit was accused of gouging debit card holders by charging "abusive" loan fees on overdrawn accounts, according to a lawsuit by a New Jersey customer filed in federal court.
TD Bank NA processes debit card transactions that exceed available balances on accounts and provides "courtesy" overdraft loans without notifying customers that they are overdrawn, according to the complaint filed this week in federal court in Newark.
"TD Bank is turning these overdraft ‘loan fees' into an enormous profit centre by manipulating the debit-clearing process so that its customers get caught paying substantially more fees than necessary," according to the complaint, which seeks to proceed as a group, or class-action lawsuit.
Toronto-Dominion Bank is Canada's second-largest lender by assets. It spent spent more than US$15-billion to expand in the U.S., including the acquisitions of Portland, Maine-based TD Banknorth and Cherry Hill, New Jersey-based Commerce Bancorp Inc. A spokeswoman for the bank, Rebecca Acevedo, didn't immediately return a call seeing comment.
Bloomberg.com
Read more: http://www.financialpost.com/news-se...#ixzz0cUqvJsNC
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TD Bank NA processes debit card transactions that exceed available balances on accounts and provides "courtesy" overdraft loans without notifying customers that they are overdrawn, according to the complaint filed this week in federal court in Newark.
"TD Bank is turning these overdraft ‘loan fees' into an enormous profit centre by manipulating the debit-clearing process so that its customers get caught paying substantially more fees than necessary," according to the complaint, which seeks to proceed as a group, or class-action lawsuit.
Toronto-Dominion Bank is Canada's second-largest lender by assets. It spent spent more than US$15-billion to expand in the U.S., including the acquisitions of Portland, Maine-based TD Banknorth and Cherry Hill, New Jersey-based Commerce Bancorp Inc. A spokeswoman for the bank, Rebecca Acevedo, didn't immediately return a call seeing comment.
Bloomberg.com
Read more: http://www.financialpost.com/news-se...#ixzz0cUqvJsNC
The Financial Post is now on Facebook. Join our fan community today.
