Class action suit against TD Bank authorized

A class action suit, which alleges an illegal change in interest rate calculation, has been authorized against the major bank

The Court of Appeal of Quebec  has authorized a class action against the Toronto-Dominion (TD) Bank.

The class action accuses TD Bank of breaching a contract with class members in the autumn of 2009. The company unilaterally changed the way it calculated the interest rate owed by borrowers on their Home Equity Line of Credit (HELOC) accounts with a variable annual interest rate.

Ms. Marilena Massella has been named by the Court of Appeal as the representative of all Quebec residents who signed an agreement for a HELOC with TD or one of its subsidiaries, and received a fall 2009 notice from TD giving rise to an increase in the percentage of interest that is added to or subtracted from the TD prime rate in order to determine the variable interest rate on their HELOC.
The class action aims to obtain compensatory damages resulting from TD’s allegedly illegal rate increase, along with punitive damages.

Class members who do not wish to be bound by any settlement reached or decision made to resolve the class action may opt out of the suit, but must do so on or before October 4.

The full notice of authorization is available on the website of class counsel, Trudel Johnston & Lespérance.

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