TD Bank Lawsuit Says Bank Reopened Accounts Without Consent

TD Bank Lawsuit

TD Bank Lawsuit Says Bank Reopened Accounts Without Consent

A Florida woman has filed a lawsuit against TD Bank, claiming it violated its customer agreement by reopening an account in her name to reap extra profits. The lawsuit comes after the plaintiff’s account was suddenly closed and then reopened without consent from TD Bank. This resulted in unjust penalties and monthly fees.

Judith J. Jimenez says she had a checking account with TD Bank since 2005. Under its account agreement, TD Bank has the right to terminate or close any account at any time for any reason, without advance notice. However, Jimenez argues that the agreement does not include authorization to open or reopen an account.

On April 15, TD Bank closed Jimenez’s checking account and mailed her a check for the account balance of $342.65. The check indicated it was for the “Closed Account Ending 9188.” She later received her bank statement, which also noted the withdrawal made April 15 and the closed account. However, on April 17, the bank reopened the account in Jimenez’s name without her knowledge or permission with a zero balance.

The TD Bank lawsuit claims tge motives behind the reopening were to reverse a provisional credit of $12.31 that TD had previously issued to Ms. Jimenez, to process a $35 check that Ms. Jimenez had written prior to TD Bank closing the account, to assess Ms. Jimenez a monthly maintenance fee of $4.99 for her account, and to assess bogus fees that amounted to nearly 100% profit for TD Bank.

TD Bank refused to pay Jimenez’s $35 check which was written before the account closure and assessed her an overdraft fee of $35. The bank also reportedly charged another $35 overdraft fee for the provisional credit reversal. The on April 22, when Jimenez’s income tax refund was deposited directly into her account, TD Bank immediately withdrew $87.30 of those funds “to replenish her purportedly negative balance”. That was $70 in overdraft fees plus the $12.31 credit reversal plus the $4.99 monthly maintenance fee.

After assessing all the fees, and taking its cut from the income tax refund, on April 28, TD Bank once again closed Jimenez’s account and mailed her a letter with a check for the remaining balance of $84.88.

Jimenez is asking the court to certify her lawsuit as a class action, with the plaintiffs defined as “all persons who, within the applicable statute of limitations period, had a checking or savings account opened in their name by TD Bank without authorization.” On behalf of all putative Class Members, Jimenez is claiming breach of contract; breach of the covenant of good faith and fair dealing; unjust enrichment; and conversion. She is seeking restitution of all fees at issue, plus damages and court costs. She also is requesting court orders compelling the defendant to halt its alleged wrongful conduct.

HT: Top Class Actions

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