ZaaZoom Electronic Check Scheme Class Action Settlement

A class action settlement has been reached in the ZaaZoom electronic check scheme class action lawsuit, resolving claims that the banking institution and payment processor of ZaaZoom Solutions LLC violated several state and federal laws by allegedly withdrawing money from consumers’ bank accounts without their express consent.

The ZaaZoom electronic check scheme class action lawsuit was filed by plaintiff Amber Marsh in 2011 and alleged that the ZaaZoom defendants (ZaaZoom, Zaza Pay LLC, MultiECom LLC and Online Resource Center LLC ) tricked consumers into applying for online payday loans and then proceeded to use consumers’ personal and banking information to enroll these consumers into internet-based Membership Programs. The consumers were then charged for this membership and money was taken out of their bank accounts without their prior express consent.

Marsh alleges Jack Henry & Associates Inc. created RCCs (remotely created checks), which were used to draft payments from consumers’ personal bank accounts. The RCCs, and therefore the consumers’ money, was then deposited in First National Bank of Central Texas (FNBCT).

While the ZaaZoom electronic check scheme class action lawsuit failed national Class certification, the presiding U.S. District Judge William Orrick did certify a California class. California consumers who were enrolled in the Membership Program and had an RCC created in their name without their consent may be entitled to compensation from the ZaaZoom electronic check scheme class action settlement fund.

FNBCT and Jack Henry & Associates, the aforementioned bank and processor, have denied any liability and wrongdoing in this class action lawsuit but have agreed to settle to avoid further legal expenses and the uncertainty of further litigation.

Who’s Eligible

You are a Class Member of the ZaaZoom electronic check scheme class action settlement if:

• “A remotely created check (‘RCC’) was created in your name to enroll you in an online membership program for discount coupon subscriptions offered by any of ZaaZoom Solutions, LLC, Zaza Pay LLC, Discount Web Member Sites LLC, Unlimited Local Savings LLC, Web Discount Club, Web Credit Rpt. Co., MegaOnlineClub LLC, RaiseMoneyForAnything, MultiEcom, LLC, Online Discount Membership, Web Discount Company, Liberty Discount Club, Online Resource Center, LLC, Web Coupon Site, USave Coupon, UClip, and/or any other entity offering discount coupon subscriptions controlled and operated by ZaaZoom Solutions, LLC and/or Zaza Pay LLC (collectively ‘ZaaZoom’); AND
• You did not authorize ZaaZoom to create and deposit an RCC in your name; AND
• Your banking account was drawn on by way of an RCC and deposited at FNBCT, or Membership Fees were collected from your banking account and deposited at FNBCT, or you incurred Bank Account Fees in connection with a collection or attempted collection of Membership Fees by any instrument deposited at FNBCT, between May 6, 2007 and September 11, 2014.”

Potential Award

$11. While the exact amount of the Cash Payment has yet to be determined, each eligible Class Member will receive approximately $11.

Proof of Purchase

None. If you have been identified as a Settlement Class Member, you will receive the cash payment as long as you do not opt-out or exclude yourself from the ZaaZoom Settlement Class.

Case Name

Amber Marsh, et al. v. ZaaZoom Solutions, et al., Case No. 3:11-cv-05226-WHO, in the U.S. District Court for the Northern District of California, San Francisco Division.

Final Hearing

12/17/2014

Settlement Website

www.FNBCTSettlement.com

UPDATE: The Court granted final approval to the settlement on Dec. 17, 2014.

Claims Administrator

Marsh v. ZaaZoom-First National Bank
Settlement Administrator
P.O. Box 43304
Providence, RI 02940-3304
866-339-7453

Class Counsel

ARIAS, OZZELLO & GIGNAC LLP
KRONENBERGER ROSENFELD LLP

Defense Counsel

GRAY DUFFY LLP