Zelle fraud class action lawsuits overview:ย
- Who: Bank customers recently filed class action lawsuits against Capital One, Bank of America, Wells Fargo, Navy Federal Credit Union and Zelle.ย
- Why: Customers claim the financial institutions do not do enough to protect them from fraudulent activity on Zelleโs digital peer-to-peer payment platform.ย
- Where: The class action lawsuits have been filed in U.S. federal courts.ย
Consumers filed a number of class action lawsuits recently against financial institutions accused of not protecting account holders who were financially injured after being defrauded while using the digital peer-to-peer payment platform Zelle.ย
An influx of scams targeting Zelle users prompted a pair of U.S. senators to write a letter in April to the owner of Zelle, warning it about the amount of fraud perpetrated on the platform.
Sens. Elizabeth Warren, D-Mass., and Robert Menendez, D-N.J., accused Zelle owner Early Warning Services LLC of not doing enough to prevent fraud from occurring on the platform.
The Democratic senators also placed blame on Zelleโs owner banks, including Capital One, JP Morgan Chase, Bank of America, Wells Fargo and Truist.ย
โWe seek to understand the extent to which Zelle allows fraud to flourish and the steps your company is taking to increase consumer protection and help users recover lost funds,โ the senators wrote.
Consumers, meanwhile, have since begun going after financial institutions, claiming they are not doing enough to protect them from falling victim of Zelle fraud.ย
Capital One class action accuses bank of refusal to reimburse Zelle fraud victims
Earlier this month, a Capital One customer who claims he was the victim of a Zelle scam filed a class action lawsuit against the bank, arguing it declines to reimburse account holders who are scammed or exposed to fraud on Zelle.ย
โDespite the plaintiffโs timely alerting Capital One of the fraud, Capital One refused to reimburse him for the losses,โ the class action lawsuit states.ย
The consumer behind the class action lawsuit claims Capital One told him it would be unable to put a stop payment on a money transfer made through Zelle that ended up falling into the hands of a scammer.ย
Wells Fargo class action alleges company fails to protect customers from fraud
Also this month, a consumer filed a class action lawsuit against Wells Fargo and Zelle over claims the companies fail to protect them from scammers who target Zelle mobile payment app users.
The consumer behind the class action lawsuit claims he was scammed out of $7,500, with Wells Fargo eventually reimbursing them for $3,500, after a scammer pretending to be with the bank convinced them to send funds.ย
In addition to allegedly initially declining to reimburse him, the consumer argues Wells Fargo and Zelle arenโt willing to put more protections in place that would help prevent their customers from becoming fraud victims.ย
โThe immediacy of Zelleโs service has made it a favorite primarily among consumers, but that has made it a favorite among criminals, who can access bank accounts directly,โ the class action lawsuit states. โOnce scammers can scare or trick their victims into sending money via Zelle, they can siphon away thousands of dollars in seconds.โ
Bank Of America class action claims financial institution fails to disclose risks of Zelle
A consumer also hit Bank of America with a class action lawsuit this month that alleges the financial institution fails to disclose to its account holders the risks of using Zelle for money transfers.ย
Further, the consumer behind the class action lawsuit argues Bank of America declines to reimburse customers who are victims of fraud through Zelle and that there is โvirtually no recourse for consumers to recoup losses due to fraud.โย
Navy Federal class action accuses credit union of failing to keep reimbursement promise
Navy Federal Credit Union, meanwhile, faces claims that it fails to keep its promise that it will reimburse account holders who lose money from fraudulent activity on Zelle.ย
Further, the Navy Federal class action accuses the credit union of misrepresenting to its customers the safety of using Zelle for money transfers.
โ(Navy Federal) misrepresents and omits a key fact about the service that is unknown to accountholders: that there is virtually no recourse for consumers to recoup losses due to fraud,โ the class action states.
The consumer behind the complaint claims Navy Federal has a โsecret policyโ of not reimbursing account holders who suffer financial losses due to fraudulent activity on Zelle, regardless of whether or not it is reported right away.ย
Has your bank refused to reimburse you after you suffered financial losses due to fraud on Zelle? Let us know in the comments!ย
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632 thoughts onZelle fraud cases mount as consumers file class action lawsuits
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Add me for Wells Fargo and navy federal both refused to help when I disputed fraudulent zelle transactions
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Add me. Us bank refused to refund me my $850 back from an auto shop saying my son car was left there, promised to send me a copy of the paperwork.They stop answering phones and bank says go online to Zelle. every month a place an request for the funds..
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Bank of America has refused to refund me for a scam where Zelle was used. They told me they canโt help me after I filed a claim but never told me that there was no protection from them since they are using it through the app. I sent in a complaint for this to your top class action inquiry and they replied back saying they were not interested in taking this case.
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A contractor caused more than $2000 in damages from spoiled food after they assumed their non-licensed help installed all breakers in our home. They refused to send us the reimbursement for the damages, even after providing photos of all spoiled food as well as the Amazon Fresh order receipts to restock the food that spoiled in the chest freezer. They then had the audacity to claim that since we are on SNAP that we should have to restock the food out of our SNAP funds. However, all the food in there had originally been purchased through our earned income.
USAA was contacted three times to request reversal of the transaction up to $2000 total. All three times they have refused or ignored the request despite being provided irrefutible evidence of the contractor causing and admitting to the damages via text as well as proof that they actually are not licensed as they claimed and thus cannot accept more than $100 for any single job.
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