TD Bank Is Killing Its Money-Eating Coin Counters
The “Penny Arcade” is going away for good.
On Thursday, TD Bank (TD) announced it would retire its problematic coin-counting machines, following reports in April that they had shortchanged customers turning in coins for credit.
TD Bank, which had suspended machines for testing, had considered reopening its Penny Arcade kiosks. But over the past month, the bank has been slapped with several lawsuits. One proposed class-action filed in federal court alleged that TD Bank had “continuously undercounted coins placed in them by consumers for years and resulted in the loss of millions of dollars for consumers.”
Now the Cherry Hill, N.J.-based financial institution is dumping the kiosks, which were once marketed as an educational tool for children.
“[Recent] accounts regarding the performance of our Penny machines have led us to reassess this offering,” said Michael Rhodes, head of consumer bank at TD Bank. “We have determined that it is difficult to ensure a consistently great experience for our customers.”
TD Bank said it also planned to “appropriately address customer impact.”
In early April, NBC’s Today show tested the machines by pouring in about $300 worth of pennies, nickels, dimes, and quarters. In one case, the kiosk spat out a receipt worth 15% less than the deposit.
TD Bank’s decision comes as other coin-counting machines are also undergoing increased scrutiny. An ABC affiliate in Philadelphia recently tested 17 devices and found that kiosks in Walmart and PNC Bank’s Change Depot were incorrect. Only Coinstar was accurate.