Nationwide Class Action Lawsuit Alleges Breach of Contract and Deceptive Practices by TD Bank, N.A. Relating to the Bank’s Secured Credit Card Program

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A new lawsuit filed by Webb, Klase & Lemond, LLC alleges that TD Bank induces consumers to enroll in secured credit cards by representing that they can graduate to an unsecured credit card after seven months when, in reality, the process takes much longer.

Atlanta-based law firm Webb, Klase & Lemond, LLC has filed a class action lawsuit against TD Bank, N.A. (“TD Bank”) alleging that TD Bank induces consumers to open a secured credit card account by representing that the consumer can automatically graduate to an unsecured credit card following seven consecutive billing cycles without a default. The Complaint alleges that TD Bank refuses to allow consumers to graduate to an unsecured credit card even when they honor the stated terms. By doing so, TD Bank allegedly violates the terms of its own contract.

According to the Complaint, TD Bank requires consumers to deposit a substantial amount of cash into a savings account as collateral funds for the secured credit card. These funds are then held for over two years, not the seven months as promised. It is also alleged that TD Bank refuses to refund the annual fee paid by consumers for the secured credit card, which is supposed to be partially reimbursed upon graduation to an unsecured credit card. TD Bank also charges another annual fee for the second and third years of the secured card, fees which would not have been assessed if the account had been graduated to an unsecured card.

The suit further alleges that consumers sign up for secured credit cards under false pretenses because TD Bank has a policy of making consumers wait two years to graduate to an unsecured credit card. Even after two years, the Bank does not graduate customers who have met the seven-month requirement, but rather imposes additional criteria not stated in the TD Bank contract. The Class Action Complaint (at Paragraph 50) seeks to certify a nationwide class which is preliminarily defined as follows:

All holders of a TD Bank, N.A. Cash Secured Credit Card who, within the applicable statute of limitations preceding the filing of this lawsuit, maintained their account for seven consecutive billing cycles without committing an act of default and were not timely graduated to an unsecured TD Bank credit card.

The suit also seeks to certify a subclass of New York consumers to whom TD misrepresented material facts pertaining to when a card holder would graduate from a secured credit card to an unsecured credit card. Pursuant to New York law, treble damages have been requested.

Because the TD Bank contract states that Delaware law will apply to all customers, the Complaint also raises a claim under the Delaware Consumer Fraud Act. The Delaware statute makes unlawful any “deception, fraud, false pretense, false promise, misrepresentation, or the concealment, suppression, or omission of any material fact” in selling a product of service. The Complaint requests damages, punitive damages, and legal fees pursuant to the Delaware Consumer Fraud Act.

The case, styled Campagna v. TD Bank, N.A., is pending in the State Court of Muscogee County in Columbus, Georgia, and has been given Case No. SC-2020-CV-462. An address in Columbus, Georgia is repeatedly listed in the TD Bank contract as the only location where secured credit card customers are allowed to submit correspondence, file disputes, and deliver all other notices to the Bank. Even though the case has been filed in Georgia, it seeks to represent all victims of TD Bank’s practices nationwide.

If you wish to discuss this action or have any questions concerning this press release, please contact Webb, Klase & Lemond, LLC at (770) 444-9325 or You may visit the firm website at

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E. Adam Webb
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