American banking giant TD Bank will pay a fine for illegally charging commission from customers. TD Bank, which collects illegal over-limit withdrawal fees from 1.42 million customers in total; it will pay 122 million dollars in compensation to these customers.
Customers of some banks can go to ATMs and withdraw money above the limit of their bank cards. In these transactions, banks charge a fee called an over-limit withdrawal fee from customers in order to cover the amount difference between them. For example; When TD Bank customers try to withdraw more than $ 5 from their card limit, they have to pay a $ 35 over-limit withdrawal fee.
TD Bank Made Decisions Misleading Its Customers
There is no legal objection for banks to charge above-limit withdrawal fees from customers. However, in order not to violate any law, banks should inform their customers of the situation before cutting this fee and state that such a fee will be cut.
Investigations by the Consumer Financial Protection Bureau in the USA show that TD Bank does not fulfill this condition. According to CNBC’s report, TD Bank did not get the approval of its customers from January 2014 until December 2018, but it charged an over-limit withdrawal fee from them.
TD Bank not only did not inform its customers of the situation, but also shared some misleading information. While the bank issues cards to customers who have applied for a Cash Advance Card, these cards have been authorized to withdraw money beyond the limit. However, no information was given to the cardholders about this process and the cardholders’ consent was not received. TD Bank also said that this service is completely free when promoting this card.
Compensation Accepted Payment
Following the researches made by the Consumer Financial Protection Bureau, it was concluded that TD Bank charged unfair commission from customers. TD Bank announced that it agreed to pay millions of dollars in compensation in line with this information.
TD Bank will pay a compensation of $ 97 million to its 1.42 million customers for whom it was unfairly received a service fee between January 2014 and December 2018. The bank will also pay a $ 25 million fine as a result of the decision of the Consumer Financial Protection Bureau.