A Massachusetts resident yesterday filed what she hopes will be a class-action lawsuit against TD Bank over the way it charges overdraft fees.
In her suit, filed in US District Court in Boston, Carly Dwyer alleges that not only did the bank fail to notify customers they could quickly rack up hundreds of dollars of fees in just a few days, but that it calculates those overdrafts in such a way as to maximize its revenue from them. She charged that the bank would order checks based on their amount, rather than the order in which they are received, meaning a customer could get hit for $35 fees for each transaction, even if it were only the last, largest check that pushed the account into negative numbers.
Dwyer said in her case, that meant $210 in fees on Sept. 14, 2009, when her actual account balance was only negative $100.49.
The lawsuit seeks damages of at least $5 million for Dwyer and other, as yet unidentified, TD customers.