Warning on TD Credit Card Annual Fees

Last year I got a TD Aeroplan Visa just in time for a nice points earning method with TD to be shut down. I sock drawered the card.

TD Aeroplan Card

This month my annual fee was billed. I paid it as my per my usual practice, then called in to cancel the card and refund the annual fee.

Most major US banks offer a minimum of 30 days from the annual fee billing/statement date. Some are more generous or prorate beyond that. I had assumed there was a regulatory reason rather than customer service choice, though seems not.

I cancelled my TD card (no retention offer) and asked to confirm that the annual fee would be credited back to the account.

Once Billed, Forever Paid

The agent said she had to refer to a supervisor, then came back on to say that TD policy is to NOT refund annual fees once billed.

Gulp! A bit surprised was I. I said, “I’m not even sure that’s legal.” I scanned the statement to see no mention of a grace period and one similar report on Doctor of Credit.

I requested to speak to a supervisor for clarification. A couple minutes later the agent came back to say she had gotten approval for a courtesy credit of the annual fee amount to be placed on my account. Phew!

As the agent suggested, you need to cancel a TD card before the annual fee is billed to ensure you won’t be on the hook.

Bonus on the bonus: the public sign-up for this card has been a steady 25,000 since launch. I have one New York-based friend with an existing TD banking relationship that was targeted last year for 35,000.

Rapid Travel Chai newsletter ¦ Twitter ¦ Facebook ¦ Instagram

  • Rich

    What is your rationale for going through the gyration of paying the fee then asking for the refund? Noticeable positive impact on your credit report? Head fake to CC companies?

  • I once had a BofA card I closed and they were supposed to refund the annual fee, they didn’t, I didn’t pay attention, and then had more of a headache of late fees and such. I also want to make sure on my credit report it shows as closed with zero balance. The refunds normally are not an issue, at statement or two later they issue refund paper check, if you are in a hurry you can request early processing. Amex will direct deposit a refund, if asked.

  • Alison

    I also just cancelled my card and my husband’s card. The annual fees had been billed, but we hadn’t paid yet. They did cancel the fees, but only when I asked. Interestingly, as soon as I cancelled, within a week, I received an email inviting me to apply for a card. So, I did, and I was approved! Not instantly, but shortly thereafter. Now applied for my husband and waiting to see if he is approved.

  • Excellent, I may go for it again, too, then.