TD Bank Targeted in Overdraft Fee Lawsuit: 5 Things to Know for the Week

Simon Zhen

Updated on Tue Jul 15, 2014

America’s Most Convenient Bank is joining the list of banks that have been hit with class-action lawsuits because of overdrafts, particular over the way banks process transactions to maximize fees charged.

  • In just one week, taxes will be due. It’ll also be the deadline for taxpayers who want to make a contribution to their retirement for tax-year 2011. If you don’t have a retirement account yet, it may take some time to get one set up. Act fast and you can still contribute by April 17 — marking a big step toward financial freedom.
  • The Citi mtvU credit card will be retiring on Friday, according to notices sent to current cardholders. The card will be converted to the Citi Forward card, which gives 5 points per dollar on books, music, movies and restaurants and 1 point per dollar on everything else. There will continue to be no annual fee and cardholders keep their existing account numbers.
  • Chase and Wells Fargo will be holding their next quarterly-earnings conference call on Friday. While these events are not often of particular interest to average consumers, bank executives often give clues on their strategies on retail banking — and offering glimpse of what may be changing to consumer accounts in the near future. In past conference calls, Wells Fargo CEO John Stumpf noted possible changes to checking products that eventually became reality.
  • Capital One released an update to its iOS and Android mobile banking applications that now allows customers to redeem their rewards anywhere. Through the apps, a Capital One cardmember can use their rewards on previously redeemed travel accommodations, gift cards, statement credit or cash back.
  • A U.S. District Judge has raised a lawsuit, in which TD Bank customers claimed that they were cheated on overdraft fees, to class-action status. The case revolves around the practice of reordering debit and check payments in an order that increases the chances of overdrafts. The same judge presided over a pending settlement with Chase over the same allegations.

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