TD Bank Agrees to $62 Million Overdraft Settlement: 5 Things to Know for the Week

Simon Zhen

Updated on Wed Jul 16, 2014

In a week that will likely revolve around the Federal Reserve’s minutes of the last board meeting, several thousand TD Bank customers should be on the lookout for the possibility in recouping overdrafts that they paid in the past.

  • The arrival of Barclays’ new U.S. online banking division is putting pressure on the market for the top rates in savings accounts and certificates of deposits. On Monday, one relatively new entrant to the online banking world will be boosting its rates to better contend with other newcomers.
  • TD Bank agreed to pay $62 million to settle a class-action lawsuit involving the manipulation of debit transactions to maximize the potential of overdrafts and, therefore, overdraft fees. The attorney for the plaintiffs said that the settlement involves several hundred thousand customers but the exact number will be determined later in the approval process.
  • Capital One released a new update for its mobile banking application to now offer merchant-funded offers. These offers are personalized in accordance with a credit cardholder’s spending history. Examples of deals include $5 back on a $30 purchase at Red Robin or $10 back on a $50 purchase at Pier 1 Imports. Also, the update includes a 30-second multitasking and automatic log-out period during a call or usage of another app.
  • On Wednesday, the Federal Reserve will release the minutes of its April 2012 board meeting. The minutes will provide an in-depth look at the discussions behind the Fed’s latest moves in monetary policy. After its April meeting, the Fed said there would be no changes to its current policy. The Fed projected the economy and unemployment rate to improve gradually as inflation rises slowly.
  • One of the newest smartphones to support Google Wallet will arrive this week. Virgin Mobile will begin to offer the LG Optimus Elite, which is packed with the near field communication (NFC) hardware to power Google’s mobile wallet. The phone becomes available starting on Tuesday for $149.99.

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