Sep 1, 2026
Thousands of Bank of Nova Scotia customers are receiving money back following a court approved $10.45 million settlement over allegedly improper non sufficient funds (NSF) fees.
The class action settlement, approved by the Ontario Superior Court of Justice on June 12, 2026, resolves allegations that Scotiabank unfairly charged repeat $48 NSF fees on re-presented pre-authorized debits.
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According to law firm Koskie Minsky LLP, which represented the plaintiffs, approximately 148,000 eligible customers will receive a direct deposit of about $42.82 credited to their personal deposit accounts.
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Here is what you need to know about the settlement and whether you qualify.
What was the lawsuit about?
The legal action focused on Scotiabank’s practice of charging multiple NSF fees on automated payment attempts between June 21, 2020 and April 30, 2024.
When a pre-authorized debit failed due to insufficient funds, the bank charged a $48 fee. If the same merchant attempted to re-process the exact same transaction within two to 30 days and it failed again, Scotiabank charged a second $48 fee.
The lawsuit argued that account holders had no control over when a third party merchant re-submitted a payment request, resulting in customers being penalized twice for a single failed bill.
Scotiabank did not admit any liability and denied the allegations, agreeing to the $10.45 million settlement to resolve the litigation without court findings of wrongdoing.
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Who is eligible for the payout?
To qualify as an eligible class member, customers must meet all of the following criteria:
- Be a resident of Canada who holds or held a personal deposit account with Scotiabank
- Have been charged a $48 NSF fee between June 21, 2020 and April 30, 2024 on a re-presented pre-authorized debit within two to 30 days of a previous NSF fee from the same merchant, for the same amount and transaction details
- Have a living personal deposit account that remains open and able to accept deposits at the time of distribution
- Have not already received a reimbursement from Scotiabank for the duplicate fee
How do customers receive the money?
Eligible class members do not need to apply, fill out claim forms or register online.
Scotiabank is identifying qualifying customers automatically using its internal transaction records. Payments of roughly $42.82 are being deposited directly into eligible active bank accounts.
Notices to eligible account holders were distributed in July 2026 via Scotia Online Message Centre and mobile application updates. Class members who have questions or whose accounts have been closed can contact class counsel at [email protected] for more information.
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
