Dufault v. The Toronto-Dominion Bank

The case Dufault v. The Toronto-Dominion Bank, 2024 ONSC 961 involved a class action lawsuit against TD Bank regarding non-sufficient funds (NSF) fees that were charged when pre-authorized debits (PADs) were declined due to insufficient funds. Key points:
Plaintiff's Allegation: TD Bank had violated its contract and consumer protection laws by charging NSF fees on repeated attempts to process the same PAD, effectively charging twice for the same declined transaction.
Class Action: Filed in 2021 under Ontario’s Class Proceedings Act, the case sought damages for all TD account holders who were charged these fees between February 2019 and November 2023.
Settlement:
- A total of $15.9 million was agreed upon, including compensation of approximately $88 per eligible class member.
- TD agreed to amend its NSF fee disclosure and refund policy.
- TD covered notification and distribution costs, ensuring direct compensation to account holders.
Class Counsel Fees: These were approved at 27.5% of the recovery ($4.25 million).
Honorarium: A $10,000 award was granted to the representative plaintiff.
Exclusions: Only current TD account holders were eligible for compensation; those with closed accounts, including deceased individuals, were excluded.
The court found that the settlement was fair and in the best interest of the class

Court

Superior Court of Justice - Ontario

Case Number

CV-21-656203-00CP

Practice Area

Class actions

Amount

$ 15,900,000

Winner

Plaintiff

Trial Start Date

Download documents