TD Bank has faced a wave of class action lawsuits alleging it systematically charged customers multiple nonsufficient funds fees on what was essentially a single transaction. When a merchant submitted a payment that bounced due to insufficient funds, TD Bank charged an NSF fee — and then charged another fee each time the merchant resubmitted the same transaction. In one Canadian case highlighted by BNN Bloomberg, a customer who was just 45 cents short ended up paying $96 in fees. Across multiple settlements in both the United States and Canada, TD Bank has agreed to pay out more than $89 million to resolve these claims.
These lawsuits have targeted several distinct fee practices at TD Bank, from retry NSF fees on personal accounts to overdraft charges on transactions that were approved when funds were available but settled after the balance dropped. The largest U.S. settlement, Perks et al v. TD Bank, reached $41.5 million, while a separate Canadian settlement addressed roughly 105,000 customers who were double-charged over a nearly five-year period.
Table of Contents
- Why Did TD Bank Charge Multiple NSF Fees on a Single Resubmitted Transaction?
- How Much Did TD Bank Pay to Settle Retry NSF Fee Claims?
- The APSN Overdraft Fee Settlement — A Different Problem, Same Bank
- Business Accounts Were Not Exempt — The Amazing Fishstore Case
- What TD Bank Customers Should Watch For Going Forward
- How the Canadian Settlement Exposed the Scale of Duplicate Fees
- The Broader Trend in Bank Fee Litigation
- Frequently Asked Questions
Why Did TD Bank Charge Multiple NSF Fees on a Single Resubmitted Transaction?
The core issue in the Perks et al v. TD Bank case was straightforward but costly for customers. When a merchant attempted to collect a payment and the customer’s account lacked sufficient funds, TD Bank charged an NSF fee — typically around $35. But merchants are generally permitted to retry failed transactions, and when they did, TD Bank treated each resubmission as a brand-new transaction rather than a continuation of the original. That meant a single bounced payment could generate two or three NSF fees before the customer even realized what happened.
This practice was particularly harmful because customers had no control over whether or how many times a merchant retried a transaction. A gym membership payment or utility bill that bounced once might be resubmitted automatically by the merchant’s payment processor days later. The customer, already short on funds, would then see additional $35 fees stacking up on an account that was already overdrawn. The plaintiffs in the Perks case argued that TD Bank’s account agreements did not adequately disclose that each retry would trigger a separate fee, making the charges deceptive. The same pattern played out in Canada, where the Ontario Superior Court of Justice approved a $15.9 million CAD settlement after finding that TD Bank charged duplicate NSF fees when merchants retried pre-authorized debits within the permitted 30-day retry window. Approximately 105,000 TD customers were double-charged between February 2019 and November 2023, and the bank failed to properly disclose that each retry attempt would generate a new fee.
How Much Did TD Bank Pay to Settle Retry NSF Fee Claims?
The U.S. retry NSF fees settlement in Perks et al v. TD Bank, N.A. totaled $41.5 million, split evenly between two forms of relief. The first half — $20.75 million — went toward direct cash payments to affected class members. The second $20.75 million came in the form of forgiveness of uncollected retry NSF fees, meaning TD Bank agreed to stop trying to collect outstanding fees it had charged but never successfully debited from customer accounts. The case was filed in the U.S.
District Court for the District of New Jersey. The claim deadline for the Perks settlement passed around July 23, 2024, and distribution has been completed. If you did not file a claim by that date, you are no longer eligible for a cash payment from this particular settlement. However, if you had uncollected retry NSF fees on your account, you may have benefited from the fee forgiveness component automatically without needing to file a claim. It is worth checking old account statements or contacting TD Bank directly to confirm whether any fee forgiveness was applied. In Canada, the $15.9 million CAD settlement worked out to an average payout of approximately $88 per affected customer. The court approved the settlement on February 15, 2024, and awards were mailed or credited to accounts during the first quarter of 2025. While neither settlement amount will make anyone wealthy, they represent meaningful recoveries for customers who may have been charged $35 to $105 in fees on a single transaction they initiated only once.
The APSN Overdraft Fee Settlement — A Different Problem, Same Bank
TD Bank’s fee troubles extended beyond retry NSF charges. In Burns v. TD Bank, N.A., a separate class action alleged the bank charged unauthorized overdraft fees on so-called “Authorize Positive, Settle Negative” transactions. This happens when a customer makes a debit card purchase at a time when their account has enough money to cover it, but by the time the transaction actually settles — often one to three business days later — the balance has dropped below the purchase amount. TD Bank then charged an overdraft fee even though the customer had sufficient funds at the moment they made the purchase. For example, imagine a customer with $200 in their account who buys $50 in groceries. At the time of purchase, the bank authorizes the transaction because the funds are available.
But before the grocery charge settles, the customer’s rent payment clears and drops the balance to $30. When the $50 grocery charge finally posts, TD Bank would charge an overdraft fee — even though the customer reasonably believed they had enough money when they swiped their card. The Burns settlement argued this practice was unfair because customers had no way to predict or prevent these fees. The APSN settlement totaled $32,225,000, broken into $21,975,000 in monetary payments and $10,250,000 in balance reductions on closed accounts. The class period covered personal checking account holders from June 27, 2019, through September 30, 2022. Award checks were mailed starting March 12, 2025, and account credits were issued between March 17 and 18, 2025. If you were a class member and have not received your payment, you should visit tdbankapsnfeeclassaction.com for information on how to follow up.
Business Accounts Were Not Exempt — The Amazing Fishstore Case
TD Bank’s fee practices did not only affect personal account holders. In Amazing Fishstore v. TD Bank, a separate class action targeted the same APSN and retry fee practices as they applied to business checking accounts. Small businesses, which often have more complex cash flow patterns and higher transaction volumes, were particularly vulnerable to these fee practices. The class period for the business account settlement stretches from February 23, 2016, through September 30, 2022 — a wider window than the personal account cases.
Current or former TD Bank business checking account holders who incurred an APSN fee or a retry fee during that period may be eligible for compensation. The distinction matters because business accounts were handled under a separate settlement from the personal account cases, so business owners who assumed they were covered by the Perks or Burns settlements may need to file separately. Details are available at tdbankbusinessaccountclassaction.com. This is a common pitfall in banking class actions: settlements are often structured around specific account types, fee categories, and time periods. A customer who held both a personal and a business account at TD Bank during the relevant periods might be eligible under multiple settlements but would need to file claims in each one independently.
What TD Bank Customers Should Watch For Going Forward
Even though these settlements address past fee practices, customers should remain vigilant about how their bank handles NSF and overdraft fees. TD Bank is not the only financial institution that has faced lawsuits over retry NSF fees — similar cases have been filed against other major banks. The underlying issue is that many banks’ fee disclosures do not clearly explain what happens when a merchant resubmits a failed transaction, leaving customers unaware that a single bounced payment could generate multiple fees. One important limitation to understand: settling a class action does not necessarily mean the bank has agreed to stop the practice entirely. Settlement agreements typically include changes to fee disclosures or practices going forward, but the specific terms vary.
Customers should review their current account agreements and fee schedules carefully. If your bank’s terms state that each presentment of a transaction may result in a separate fee, you are on notice that retry fees could still apply — even if the bank previously settled a lawsuit over the same practice. If you believe you have been charged multiple NSF fees on a single resubmitted transaction at any bank, document the charges by saving account statements and transaction records. Contact the bank’s customer service department first, as many banks will reverse duplicate fees as a courtesy if asked. If the bank refuses, you can file a complaint with the Consumer Financial Protection Bureau, which tracks patterns of fee-related complaints and has taken enforcement action against banks for unfair fee practices.
How the Canadian Settlement Exposed the Scale of Duplicate Fees
The Canadian settlement provided an unusually clear picture of just how widespread duplicate NSF fees were. Court documents revealed that approximately 105,000 TD customers were affected over a roughly five-year period from February 2019 to November 2023. As reported by Benefits and Pensions Monitor, the $15.9 million CAD settlement exposed the significant burden that NSF fee practices placed on everyday banking customers.
The BNN Bloomberg headline capturing a customer charged $96 for being 45 cents short crystallized the absurdity of the practice in a way that resonated well beyond the courtroom. The average payout of roughly $88 per customer suggests that most affected customers were hit with one or two duplicate fees during the class period. But averages can be misleading — some customers with recurring payments that bounced repeatedly may have accumulated far more in improper charges. The settlement’s distribution formula likely accounted for the number and amount of duplicate fees each class member actually incurred, meaning payouts varied significantly from person to person.
The Broader Trend in Bank Fee Litigation
TD Bank’s settlements are part of a broader reckoning in the banking industry over fee practices that regulators and courts have increasingly found to be unfair or inadequately disclosed. The Consumer Financial Protection Bureau has signaled that junk fees — including certain NSF and overdraft charges — remain a priority. Several major U.S.
Banks have voluntarily reduced or eliminated NSF fees in recent years, partly in response to regulatory pressure and partly to avoid the kind of litigation TD Bank faced. Looking ahead, customers have more tools than ever to monitor and challenge questionable bank fees. The combination of regulatory scrutiny, class action litigation, and competitive pressure from banks and fintechs that have dropped NSF fees entirely suggests that the era of stacking multiple fees on a single failed transaction may be drawing to a close. But until fee disclosures become truly transparent and uniform across the industry, consumers should continue reading the fine print and pushing back when charges seem disproportionate to the actual cost of a bounced transaction.
Frequently Asked Questions
Can I still file a claim for the TD Bank retry NSF fees settlement?
No. The claim deadline for the Perks et al v. TD Bank settlement passed around July 23, 2024, and the settlement distribution has been completed. If you did not file by that deadline, you are no longer eligible for a cash payment from this settlement.
When will I receive my APSN overdraft fee settlement payment?
Award checks for the Burns v. TD Bank APSN fee settlement were mailed starting March 12, 2025. Account credits for current TD Bank customers were issued between March 17 and 18, 2025. If you were a class member and have not received payment, visit tdbankapsnfeeclassaction.com for updates.
How much did Canadian customers receive from the TD Bank NSF fee settlement?
The Canadian settlement totaled $15.9 million CAD, covering approximately 105,000 affected customers. The average payout was roughly $88 per customer, though individual amounts varied based on the number and size of duplicate NSF fees each person was charged between February 2019 and November 2023.
Does the TD Bank business account settlement cover the same fees as the personal account settlements?
The Amazing Fishstore v. TD Bank settlement covers both APSN fees and retry fees charged to business checking account holders from February 23, 2016, through September 30, 2022. This is a separate settlement from the personal account cases, so business account holders need to check their eligibility independently at tdbankbusinessaccountclassaction.com.
Were the TD Bank NSF fee practices illegal?
The lawsuits alleged that TD Bank’s fee practices were unfair and inadequately disclosed, but TD Bank settled without admitting wrongdoing. Settlement does not constitute a legal finding that the bank violated the law. However, the size of the settlements and the changes to fee practices suggest the claims had substantial merit.
How can I protect myself from similar bank fees in the future?
Review your bank’s fee schedule carefully, paying attention to how NSF and overdraft fees are described. Set up low-balance alerts on your account. If you are charged multiple fees on what appears to be a single transaction, contact your bank to dispute the charges and file a complaint with the Consumer Financial Protection Bureau if the bank refuses to provide relief.
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