Zions First National Bank Telemarketing Scheme Class Action Settlement

Zions First National Bank, sued for an allegedly fraudulent telemarketing scheme that resulted in unauthorized charges to bank consumers’ accounts, has agreed to settle RICO claims against it for $37.5 million.

The proposed class action lawsuit settlement was brought on behalf of consumers who had money withdrawn from their Zions First bank accounts between October 2006 and March 2010 by certain telemarketers and/or Internet marketers alleged to be fraudulent, and/or who incurred bank charges because of this conduct.

The case alleged that Zions First National Bank, NetDeposit LLC, MP Technologies d/b/a Modern Payments (collectively, “Zions Defendants”) and Teledraft Inc. provided banking services to these entities with knowledge of their alleged fraud.

Specifically, the class action lawsuit claims that the defendants provided payment processing services to allegedly fraudulent telemarketing and web marketing companies.

Under the terms of the class action lawsuit settlement, Zions First National Bank and two subsidiaries will pay $37.5 million to resolve claims brought under the Racketeer Influenced and Corrupt Organization (RICO) Act.

More than 500,000 consumers’ accounts were alleged to have been debited on behalf of the fraudulent entities.

The $37.5 million settlement fund will pay Class Members based on the amounts taken from their accounts, settlement administration costs, attorneys’ fees and expenses, and a $25,000 service award to the Class representative.

The settlement provides for an additional fund of up to $250,000 to cover claims for consumers who were debited by Teledraft Inc. on behalf of companies using the names IDCustServ.com, IDProcs.com, IDtheCS.com, PDloancs.com, PDCustserv.com, and PayDLCS.com.

If the total value of these claims exceeds $250,000, they will be covered by the common fund.

The Zions defendants deny these allegations, deny any wrongdoing, and have agreed to settle to avoid the uncertainty, expense and burden of litigation.

Class Members that received postcards notifying them of the proposed settlement do not have to file a claim but they may need to update their bank account information, or opt to receive payment via check.

There is a claim filing option for people that did not receive a postcard, but believe they are a Class Member.

Class Members who wish to object to the terms of the settlement or wish to be excluded from the settlement must do so by Nov. 1, 2016.

Who’s Eligible

You may be a Class Member if you received an ACH debit entry or remotely-created check draft on your bank accounts on behalf of the merchants identified below, and/or if you incurred bank charges as a consequence of such ACH debit entries or remotely-created check drafts.

The merchants include:

• Physician Health Services LLC d/b/a Health Benefits Online
• Health Management LLC d/b/a National Healthcare Solutions and National Health Net
• Physician Health Systems Inc. d/b/a Health Benefits Online
• Market Power Marketing Solutions
• Vexeldale LLC
• Sourdale LLC d/b/a Zaazoom, cardsupportsite.com, Get Your Credit Report Now, Payday Loan Resources, pdloancs.com, PDcustserv.com, PayDLCS, Identity Theft Protection, www.IDtheCS.com Idcustserv.com, IDprocs.com
• Low Pay Inc. d/b/a LPC Inc., mylpcard.com
• RxSmart d/b/a Calivada Marketing
• Group One Networks d/b/a US Gold Line, My Online Credit Store, Ecredit, Credit Line Gold Card, 1st Credit Improve, Fast Financial Coach
• Platinum Benefits Group

Potential Award

VARIES.

The $37.5 million settlement pool will be divided pro rata among all qualified Class Members after payment of attorneys’ fees, settlement administration expenses, and incentive fee awards.

The net settlement fund will be distributed based on transactional databases that identify most Class Members and the amounts debited from their accounts.

A claim shall consist of any sums debited on behalf of one of the telemarketers or Internet marketers and/or any “insufficient funds” (NSF) charges incurred by the Class Member.

An NSF charge shall be assumed where a return code in the database indicates an item was returned NSF.

A claim amount shall be $25 for each NSF.

For example, a person whose account was debited $100 on behalf of a telemarketer and shows three NSF returns will have a claim amount of $175. A Class Member with just one NSF charge and no debited amount will have a claim amount of $25.

Proof of Purchase

N/A.

Claim Form

CLICK HERE TO FILE A CLAIM »

The vast majority of Class Members do not have to file a claim but only have to update their bank account info, or can opt to receive payment via check.

Settlement funds will be distributed directly to bank accounts based on bank account information dating from the period of October 2006 through March 2010.

Class counsel has obtained databases identifying the bank account information of most Class Members.

To the extent this information appears to remain accurate, each Class Member’s portion of the fund will be deposited directly into their account without the need to file a claim.

If your bank account has changed since the period of October 2006 through March 2010, you may update your account information on the settlement website by visiting the Payment Options section of the site.

For each Class Member whose account information is no longer valid, checks will be mailed to their last known address if available.

If you would like to receive a check instead of an automatic disbursement, you may so indicate here.

However, if you believe your account was debited by IDCustServ.com, IDProcs.com, IDthecs.com, PDloancs.com, PDCustserv.com, or PayDLCS.com during the period of Feb. 15, 2008 through Sept. 1, 2009, you may file a claim here.

This claim will require you to affirm under penalty of perjury that you believe money was taken from your account by these entities. The claim will be evaluated by the claims administrator.

Claim Form Deadline

11/01/2016

Case Name

Reyes v. Zions First National Bank, Case No. 10-cv-0345-TR, in the U.S. District Court for the Eastern District of Pennsylvania

Final Hearing

11/21/2016

UPDATE: On November 21, 2016, the Zions First National Bank class action settlement received final approval from the court.  Let Top Class Actions know when you receive a check in the comments section below or on our  Facebook page.

UPDATE 2: On May 8, 2017, Top Class Actions viewers who filed a claim for the Zions First National Bank Telemarketing Scheme Class Action Settlement started receiving checks in the mail! 

Settlement Website

www.TelemarketingSettlement.com

Claims Administrator

Reyes v. Zions First National Bank
c/o Heffler Claims Group
PO Box 59269
Philadelphia, PA 19102-8547
844-412-1946

Class Counsel

Howard I. Langer
John Grogan
Peter Leckman
LANGER GROGAN DIVER PC

Defense Counsel

Grant S. Palmer
BLANK ROME LLP