Outcome: $5,000,000.00 Settlement
Walters v. Target, Case No.: 3:16-cv-01678 in the United States District Court for the Southern District of California
A class action settlement has been reached involving allegations against Target concerning its marketing practices of the Target Debit Card (TDC) and the assessment of Returned Payment Fees (RPFs). Represented by class counsel Tycko & Zavareei LLP, Plaintiff Walters argued that Target breached its debit card agreement and engaged in deceptive practices by improperly processing transactions and charging RPFs when consumers’ linked bank accounts had insufficient funds. Despite Target’s assertion that it adhered to all legal requirements and the terms of its customer agreements, the retailer agreed to a settlement to resolve these claims.
The settlement includes a $5,000,000 cash fund and provisions for affected class members, who are eligible for automatic payments or debt reductions on their TDC accounts. The class encompasses U.S. residents who, from June 29, 2012, to December 2, 2019, were charged at least one RPF related to their TDC that was not subsequently waived or reimbursed. Additionally, Target has consented to implement changes in its business practices concerning the processing of TDC transactions. Eligible class members should have had or currently have a TDC and incurred RPFs during the specified period to qualify for compensation.