The high cost of not having enough money is being brought into focus by a class-action lawsuit at one of the country’s largest banks.
Court documents in the case against TD Bank included a stark example from lead plaintiff Tyler Dufault, who was charged $96 in fees by the bank after he fell 45 cents short on a PayPal bill.
A $15.9-million settlement of the suit, which focused on whether the bank had properly disclosed that customers could be twice charged the $48 non-sufficient funds (NSF) fee, was approved this week by the Ontario Superior Court.
The settlement comes as scrutiny grows more generally on the charging of such fees, including a push to lower them by the federal government.
In the U.S., many banks have already moved to eliminate the fees thanks to pressure from regulators, while in Canada advocates are also pushing to reduce them or do away with them entirely.