TD Home Equity Line of Credit / Unilateral and Systematic Change to how Interest is calculated for Variable Interest Rates
On October 9, 2012, Ms. Marilena Masella filed a motion seeking authorization to institute a class action against Toronto Dominion Financial Group (“TD”).
Ms. Masella alleges that TD breached its contract with class members in the fall of 2009 when it unilaterally and systematically changed how it calculated the interest owed by borrowers on its Home Equity Lines of Credit with a variable annual interest rate.
The class action seeks compensatory damages resulting from the illegal increase in the interest charged by TD, as well as punitive damages for TD’s violation of the Quebec Consumer Protection Act.
On January 15, 2016, the Court of Appeal of Quebec authorized the class action and named Ms. Masella the representative of the following group:
All persons who signed an agreement for a home equity line of credit (“HELOC”) with TD Bank or one of its subsidiaries, and who, over the course of fall 2009, received a notice of modification of the agreement that gave rise to an adverse change in the percentage of interest that is added to or subtracted from the TD prime rate in order to calculate the variable annual interest rate.
If you are a class member and want to receive information on the file, you can sign up to our mailing list by completing the form at the bottom of this page.
Where are we now?
Following the authorization of the class action by the Court of Appeal, the Honourable Justice David Collier was named to case-manage the class action and preside over the trial on the merits. A schedule of proceedings has been set and the matter is proceeding towards a trial.
The Defendant sent class members an abridged notice directly by mail to inform them of the authorization of the class action and their right to opt out of the class action. For more information on the class action, please consult the full Notice to class members.