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TD Bank Zelle payment system class action lawsuit overview:
- Who: Gautham Yatham and Robert Walters filed a class action lawsuit against TD Bank, N.A.
- Why: Yatham and Walters claim TD Bank misrepresented to its customers that the Zelle payment system was safe to use.
- Where: The class action lawsuit was filed in New Jersey federal court.
TD Bank fails to disclose to its customers that the Zelle payment system it promotes has “huge” security risks and that individuals who are defrauded on the platform have “virtually no recourse” for getting their money back.
Plaintiffs Gautham Yatham and Robert Walter claim TD Bank misrepresents to its customers that Zelle, a person-to-person payment transfer service, is a “secure, free and convenient way to make money transfers.”
“The unique, misrepresented and undisclosed architecture of the Zelle payment system means … that virtually any money transferred for any reason via Zelle is gone forever without recourse, reimbursement or protection,” the TD Bank class action states.
TD Bank class action claims bank has secret policy not to reimburse for Zelle fraud
Yatham and Walter claim TD Bank keeps secret its policy that it “does not and will not reimburse its accountholders for losses via Zelle due to fraud,” including in instances when the fraud is reported in a timely fashion.
Further, Yatham and Walter argue TD Bank was contractually obligated to be upfront with its customers about the dangers of using Zelle.
“TD Bank was required not to misrepresent the unique and dangerous features of the Zelle service in its marketing about it and in contractual representations. But it failed to do so,” the TD Bank class action states.
Yatham and Walter claim TD Bank is guilty of breach of contract and breach of the covenant of good faith and fair dealing and in violation of the Florida Deceptive and Unfair Trade Practices Act and the New Jersey Consumer Fraud Act.
Plaintiffs demand a jury trial and request declaratory and injunctive relief along with punitive, exemplary and actual and/or compensatory damages for themselves and all class members.
Yatham and Walter want to represent a nationwide class and New Jersey and Florida subclasses of TD Bank account holders who signed up for Zelle and “incurred unreimbursed losses due to fraud.”
Instances of unreimbursed Zelle fraud have led to class action lawsuits being filed against a number of other financial institutions, including Bank of America, Wells Fargo, Capital One and Navy Federal Credit Union.
Have you been a victim of fraud on Zelle? Let us know in the comments!
The plaintiffs are represented by Rachel Edelsberg, Scott Edelsberg and Christopher Gold of Edelsberg Law, PA and Andrew J. Shamis of Shamis & Gentile, P.A.
The TD Bank Zelle Payment System Class Action Lawsuit is Yatham, et al. v. TD Bank, N.A., Case No. 2:22-cv-04161, in the U.S. District Court for the District of New Jersey.
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35 thoughts onTD Bank class action claims bank does not reimburse customers for Zelle fraud
I was scammed out of $17K. TD Bank has been giving me a royal run around.
Add me
Kindly add my name to the Class Action suit v Zelle and TD Bank. I was scammed out of $1,237.00 in August 2021. I complained formally to: TD Bank, Zelle, Consumer Financial Protection Bureau, FBI (ICE3 complaint) and the Consumer Protection Bureau for the Commonwealth of Massachusetts. Their attitude is that the individual scammed is to blame for getting scammed by Zelle! NO reimbursement, the individual is ignored in spite of multiple complaints filed. I have also contacted Senator Elizabeth A. Warren for help and was told that her office can do nothing to help me.
I recently lost 1500. A phony Zelle customer service agent got me to transfer money to a “dummy” account, in order to “test” my Zelle account.
The only dummy in this situation was me. He had me download an app to let me him view everything I was doing on my phone, in order to assess the issue. He made me log into TD Bank and transfer funds via Zelle, which he told me wold immediately come back into my account. He gave me a bogus staff ID number and name. When filed my dispute with TD, I was told, “that’s what we’re here for.” 10 days later, my claim was rejected because my own device was used to transfer the funds.
YES, THAT’S WHAT A SCAM IS!!!
Please add me
I was scammed out off $925 through zelle on TD bank platform, I tried calling and reporting it as fraud to no avail. Please add me to the lawsuit
I TO HAVE BEEN SCAMMED BY TD BANK FOR THE EXACT SAME THING AND I WANT TO BE APART OF THIS LAWSUIT PLEASE ADD ME
I was scammed out of $4900 between td and Zelle. When I reported to both Zelle took the report but TD Bank said I was no longer welcomed after 30 years of banking with them through 3 mergers! My records clean! TD cashed and approved the check but 2 days later returned it! It was a check from scammers as a sign on bonus fir what I thought was a job through INDEED that I had applied for and it was a scam. TD treated me like I was at fault when I reported to FTC, FBI, TD, Zelle and FTC Identity Thief. All in 24 hours!
I had something similar. TD Bank has frozen my account, won’t give us access to our statements or money because of a fraudulent Zelle transaction that they called me about (and denied). I’m glad they denied the Zelle transfer but now they are holding my entire checking account for 5-6x that amount with no ability to access my money. how is this legal? It’s been under review for over a week by a mysterious “fraud closure” department that not even the branch can reach. We had used TD Bank and before that Commerce for over 20 years.
I had $3500 stolen from me through Zelle and td bank wouldn’t do anything at all for me. They basically said it was my fault for falling for a scam
I immediately contacted TDBank who told me there is nothing they can do
I got scam and lost $1500. The message said the money will not be available in the scammer’s account until next week but Td Bank still could hold that money back for me. Pleadd me into this lawsuit.