CORRECTED-UPDATE 1-TD Bank to retire coin-counting machines after reports of errors

(Corrects fourth paragraph to reflect 29 billion coins counted
in 2012, not million)
By Karen Freifeld
NEW YORK, May 19 (Reuters) - Toronto-Dominion Bank's TD.TO
TD Bank NA said on Thursday it has decided to retire its Penny
Arcade coin-counting machines in the wake of reports that they
were short-changing customers.
"We have determined that it is difficult to ensure a
consistently great experience for our customers," Michael
Rhodes, TD Bank's Head of Consumer Bank, said in a statement.
"We will continue to assess the Penny experience and intend to
appropriately address customer impact."
Lawsuits are pending against the bank on behalf of
customers who had used the machines. In one case, filed in New
York state court in Manhattan last month, New Yorker Jeffrey
Feinman said the machines once gave him a receipt for $25.44
when he deposited $26 worth of coins, and $30.05 when he
deposited $31.
The New York lawsuit claimed the Penny Arcades counted 29
billion coins in 2012. The service was free for account holders
and charged an 8 percent fee for everyone else.
"We would hope and expect TD Bank to right this wrong, which
has affected not only commercial customers of TD Bank, but also
those children that brought in their 'lemonade stand' money to
deposit in their savings accounts," said Florida attorney
Michael Criden, who filed a class action over the issue last
month in U.S. District Court in Miami.
Judith Schmidt, a spokeswoman for the bank, would not
comment on the pending litigation.
The bank took the machines out of service in early April for
retesting after news reports broadcast inaccuracies. At the
time, it said it would bring them back once performance
requirements were met.
Rhodes added that usage of the machines, a long-standing
service at the bank, had declined over the past few years.
The bank said its tellers would continue to accept
pre-rolled coins.