Consumer complaint received 2018-10-02
Company: TD BANK US HOLDING COMPANY
State: CA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem caused by your funds being low
Sub-issue: Overdrafts and overdraft fees

Complaint:
After incurring {$490.00} in overdraft fees in the 1st 4 months of 2018, in XXXX 2018, as advised by a TD Bank representative, I unenrolled from TD Bank 's overdraft protection program, the Debit Card Advance Program, to avoid going into overdraft and incurring the subsequent fees. It was my understanding that being unenrolled, transactions would instead be declined if the funds werent available. On XX/XX/XXXX2018, I saw that my TD checking account was overdrawn {$42.00} due to a credit card payment of {$100.00}. I was surprised to see I was overdrawn because I had not scheduled the {$100.00} payment and had unenrolled from the Debit Card Advance Program. On XX/XX/XXXX, I transferred {$43.00} from a friend 's checking account and {$67.00} from a credit card into my account. On XX/XX/XXXX, when I checked, my account was not overdrawn and no fees were assessed. On XX/XX/XXXX, the {$43.00} had been credited to my account, but not the {$67.00}. On Monday, XX/XX/XXXX, per TDs online system, the {$67.00} had been credited to my account and 2 debits appeared in the amounts of {$6.00} and {$18.00}. The {$67.00} credit and 2 debits were all dated as posting on XX/XX/XXXX. On XX/XX/XXXX, when I checked my balance, 2 overdraft fees, each being {$35.00}, and a bank maintenance fee of {$14.00} had been deducted from my account by TD Bank, creating a total of {$84.00} in fees. On XX/XX/XXXX, I called TD Bank at XXXX and spoke to XXXX who stated that the overdraft fees were due to 2 of the 3 debits between XX/XX/XXXX & XX/XX/XXXX ( {$100.00}, {$6.00}, {$18.00} XXXX though she wasnt certain which 2 incurred the fees. I explained that I had unenrolled from the Debit Card Advance Program to avoid an overdraft and incurring fees. I also detailed how from my end it appeared that I had successfully transferred funds into my account between XX/XX/XXXX and XX/XX/XXXX to cover these 3 debits. XXXX told me that neither of the 2 {$35.00} fees would be removed from my account because TD Bank had credited me {$140.00} in overdraft fees in XX/XX/XXXX2018 when I unenrolled from the Debit Card Advance Program. XXXX supervisor, XXXX, also rejected my request and gave the same reason. Because of the {$14.00} maintenance fee and because of the {$70.00} in overdraft fees, my checking account was left overdrawn in the amount of {$46.00} on XX/XX/XXXX. I expressed to XXXX my concern that being overdrawn, I might incur more fees should something unexpected be charged to my account. XXXX stated that since I was already overdrawn, I would not incur more fees should I become more overdrawn. 

On XX/XX/XXXX, a debit of {$2.00} from XXXX posted to my account. The {$2.00} was debited despite the funds not being available. Were it not for the {$84.00} in fees TD Bank assessed on XX/XX/XXXX, the funds would have been available. I am investigating what the {$2.00} is for, as it wasnt an expected charge. On XX/XX/XXXX, I deposited {$500.00} into my account. Another {$35.00} overdraft fee posted to my account on XX/XX/XXXX. On XX/XX/XXXX I called TD Bank and spoke to a customer service representative and a supervisor named XXXX. They told me the XX/XX/XXXX fee was for the {$2.00} debit on XX/XX/XXXX and refused to remove the fee. I explained that the only reason {$2.00} was unavailable in my checking account on XX/XX/XXXX was due to the {$84.00} in fees the bank assessed previously that week. I expressed dismay over a {$35.00} fee for a {$2.00} charge. Again I said that I had unenrolled from the Debit Card Advance Program so that transactions would be declined if the funds were not in my account. When I stated this to the supervisor, XXXX, she told me that TD Bank can pay charges to my account when the funds are not available putting my account in overdraft, and then assess the subsequent {$35.00} fee at their discretion, regardless of whether or not I am enrolled in the Debit Card Advance Program and regardless of the fact that I have not consented to overdraft fees. 

It is stated on the U.S. Department of Treasurys website that by law, financial institutions are prohibited from assessing fees for paying ATM and one-time debit card transactions that overdraw consumer accounts unless the consumer affirmatively consents, or opts in, to the overdraft protection program. I depend on this statement being true and accurate, as I have a XXXX  XXXX which makes accounting an immense challenge if not impossible for me to accurately manage. I can not afford to hire someone to do my day-to-day accounting. Prior to the Debit Card Advance Program, TD Bank would routinely decline charges to my account if there were insufficient funds. In my first 2 years with the bank ( XXXX & XXXX ), I was assessed a total of {$310.00} in overdraft fees, as opposed to the {$700.00} in overdraft fees I have incurred in the year 2018 alone. The bank still does decline transactions, but unreliably, which makes sense given XXXX statement that accepting or declining transactions is done at the banks discretion and not done based on fund availability nor the account holders consent. All this aside, I transferred funds into my account on XX/XX/XXXX to cover the 3 debits between XX/XX/XXXX and XX/XX/XXXX. TD Banks online system showed that my transfers posted in time to cover the 3 debits. 

Everyone I spoke to at TD Bank on XX/XX/XXXX XXXX XX/XX/XXXX said that the only way to avoid going into overdraft and incurring overdraft fees was to have more money. To date, TD Bank has charged my checking account {$5200.00} in overdraft fees in the 6 years I have been banking with them. I would certainly have more money if those fees were not assessed and/or if there were a way to avoid them. Per the XXXX rule amending Regulation E, in part 205 of the Code of Federal Regulations, Title 12, I am entitled the option of declining enrollment in a banks overdraft protection program. I have never willfully consented to the overdraft fees assessed to my TD bank account. In my ongoing pursuit to avoid the fees, I have been talked into and out of being enrolled in TD Banks overdraft protection services by the banks representatives over the years. The cycle of overdraft fees perpetuating more overdraft fees to no limit is in part a reason for why I remain in a place of financial hardship. TD Banks system appears to be unlawful and has capitalized on my financial vulnerability as well as my XXXX XXXXXXXX both circumstances which Ive naively disclosed to TD Banks representatives when seeking their help.

Company response to consumer: Closed with monetary relief