TD Bank agreed to pay $122 million to settle charges from the Consumer Financial Protection Bureau that it engaged in illegal overdraft practices. (Photo: Flickr user Mike Mozart.)

TD Bank has agreed to pay $122 million in a settlement with Consumer Financial Protection Bureau over charges that it issued illegal overdraft fees.

The Cherry Hill, N.J.-headquartered bank will pay $97 million to about 1.42 million consumers and a civil penalty of $25 million, the CFPB and the bank announced Thursday. 

TD Bank charged consumers overdraft fees for ATM and debit card transactions without obtaining their consent from 2014 to 2018, the agency says. The bank presented its optional Debit Card Advance program as a free service or benefit that came with new consumer checking accounts. As part of the program, TD Bank charges $35 for each overdraft, the CFPB says.

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