The TD Bank overdraft class action settlement paid out $32.225 million to personal checking customers who were charged an Authorized Positive, Settled Negative (APSN) overdraft fee between June 27, 2019 and September 30, 2022. Payments started going out in March 2025. You did not need to file a claim; the settlement administrator used TD Bank’s records to identify eligible accounts automatically.1tdbankapsnfeeclassaction.com
Who Was Included
You were part of the class if two things were true: you held a personal checking account at TD Bank, and that account was charged at least one APSN overdraft fee during the class period of June 27, 2019 through September 30, 2022. Business accounts were not covered.
Inclusion was automatic. The only way out was to submit an exclusion request before the September 14, 2024 deadline, which has now passed. The court approved the settlement at a final hearing on October 15, 2024.
What an APSN Fee Is
An APSN fee is charged when you swipe your debit card with enough money in your account to cover the purchase, but by the time that transaction actually posts, other charges have hit your account and dropped your balance below zero. TD Bank charged an overdraft fee on the original transaction anyway, even though the funds were there when you made the purchase. The lawsuit argued this violated TD Bank’s own account agreement. TD Bank denied the allegations but agreed to settle.
How Much You Received and How It Was Calculated
Individual payments were proportional to the total dollar amount of APSN fees you were charged during the class period. Someone charged $500 in qualifying fees received a larger share than someone charged $50. The $32.225 million total was split between direct cash payments ($21.975 million) and forgiveness of negative balances on closed accounts tied to disputed APSN fees ($10.25 million). Attorneys’ fees, administrative costs, and service awards to the named plaintiffs came off the top before distribution.
When and How Payments Went Out
Distributions began in March 2025.
- If your TD Bank account was still open, you received an account credit on March 17 or 18, 2025.
- If your account had been closed, a check was mailed to your last known address starting March 12, 2025.
Because distribution was automatic, no claim form or filing deadline applied to individual class members.
If You Haven’t Received Your Payment
The most common reason former customers didn’t get paid is a stale mailing address. If you closed your TD Bank account and moved, your check may have gone to an old address. Contact the settlement administrator to update your information or request a replacement:
- Website: tdbankapsnfeeclassaction.com
- Phone: 1-888-695-6078
Move quickly. Settlement checks carry an expiration date, and once they go stale the funds eventually transfer to state unclaimed property programs. Recovering money from a state database takes longer and involves more paperwork than cashing the check you were sent. If a check arrived and is still sitting on your counter, deposit it now.
Is the Payment Taxable?
Because the settlement refunds overdraft fees you already paid to TD Bank, the payment generally functions as a return of your own money rather than new income, and refunds of fees you already paid are generally not treated as taxable income. Tax treatment can depend on how a settlement is formally allocated, though, so if your payment was large or your situation is unusual, talk to a tax professional. The IRS’s general guidance on settlement taxability is in Publication 4345.
What You Gave Up by Staying In
If you did not opt out before the September 14, 2024 deadline, you released your claims against TD Bank related to APSN fees during the class period. You cannot separately sue TD Bank over these overdraft fee practices, even if the fees you paid were significantly larger than your share of the settlement fund. That trade-off is standard for class action settlements, but it’s worth naming clearly: staying in the class exchanged your right to bring an individual lawsuit for a proportional cut of the $32.225 million.