TD Bank joins lenders revamping overdraft fees amid criticism

Toronto-Dominion Bank’s U.S. retail banking unit is eliminating charges for overdrafts of $50 or less, joining a parade of lenders revamping their fees amid criticism from politicians, regulators and consumer advocates.

TD Bank also is giving customers who overdraw their accounts by more than that amount 24 hours to fix the issue before incurring a fee, the unit of the Toronto-based company said in a statement Tuesday. The bank is eliminating transfer fees for customers using savings overdraft protection services, and will notify customers when their balances are getting low.

U.S. lenders including Bank of America, Wells Fargo and U.S. Bancorp have eased off of overdraft charges with lawmakers including Democratic Sen. Elizabeth Warren calling the fees abusive and financial technology firms that don’t levy the penalties gaining momentum. TD Bank has more than 9.7 million customers and a branch network that spans the U.S. East Coast.

TD Bank also said it is rolling out financial-education resources more broadly this year, and that it has piloted text messaging for new customers who have overdrawn their account.