American Express class action alleges company fails to protect some accounts against fraud 

American Express class action lawsuit overview:

• Who: Plaintiff Tanika McQueen filed a class action lawsuit against American Express Travel Related Services Co. Inc.
• Why: American Express allegedly failed to live up to its promise to protect against fraudulent transactions associated with its Serve prepaid debit card accounts.
• Where: The American Express fraud class action lawsuit was filed in New Jersey federal court.

American Express Travel Related Services Co. Inc. failed to live up to its promise to protect against fraudulent transactions for tax returns issued to their prepaid debit accounts, according to a recent American Express class action lawsuit.

Plaintiff Tanika McQueen says she used Jackson Hewitt’s professional tax preparation services in 2022 and received a prepaid American Express Serve debit card that contained her federal and state tax refunds.

She also received an email indicating her prepaid debit account contained more than $3,000, but when she tried to access the money, she claims she discovered the account had no money.

“As [McQueen] would learn, an unknown person withdrew approximately $2930 in a series of ten small ATM transactions at a CVS pharmacy located in Brooklyn, NY,” the American Express class action lawsuit states.

McQueen asserts she did not lose her card or share her PIN and never made a transaction in Brooklyn. She says she immediately reported the theft to Serve and submitted a declaration of fraud.

However, McQueen alleges, Serve refused to refund the stolen money after its investigation determined “no error occurred and that transaction(s) in question was authorized.”

American Express fraud affected others throughout U.S., plaintiff claims

The class lawsuit claims others throughout the country experienced the same issue.

McQueen filed the suit on behalf of a proposed class of people in the United States whose Serve bank accounts were debited for at least one transaction without their written preauthorization within the past year. McQueen also seeks to represent a New Jersey subclass that experienced unauthorized transactions within the last six years.

The class action lawsuit asserts claims for violations of the Electronic Fund Transfer Act and violations of the New Jersey Consumer Fraud Act.

American Express also faces a class action lawsuit alleging it performs hard credit checks after promising soft inquiries, potentially affecting consumers’ credit.

Have you experienced fraud on a prepaid debit card? Join the discussion in the comments.

McQueen is represented by Ross H. Schmierer of Kazerouni Law Group APC.

The American Express fraud class action lawsuit is Tanika McQueen v. American Express Travel Related Services Co. Inc., Case No. 2:24-cv-00862, in the U.S. District Court for the District of New Jersey.

Read About More Class Action Lawsuits & Class Action Settlements:

• Bank of America confirms data breach compromised customer data in November 2023
• Wells Fargo class action claims company charges illegal overdraft fees
• Navy Federal class action claims credit union discriminates against minorities
• US Bank, BoA class actions accuse companies of stifling customer rights to free speech