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Zelle consumer class action overview:
- Who: A Zelle customer filed a class action lawsuit against the company.
- Why: The plaintiff claims the company does not do enough to protect customers from fraudulent activity on Zelle’s digital peer-to-peer payment platform
- Where: The lawsuit was filed in California federal court.
Zelle is the latest company to be hit with a consumer class action lawsuit amid a string of lawsuits alleging company owners do not declare or mitigate the security risks of using the payment transfer service owned by seven of the largest banks in the United States.
Plaintiff Dele Hope filed the lawsuit July 7 against Early Warning Services LLC, also known as Zelle, in a California federal court, alleging violations of consumer laws.
According to Hope, Zelle encourages bank account holders to sign up for the service by marketing itself as a fast, safe and secure way for consumers to send money.
However, this is false, he says.
“In fact, there are huge, undisclosed security risks of using the service, including from fraudsters who regularly exploit the service,” Hope alleges.
“Zelle’s marketing representations never inform users that consumers — not Zelle or the banks through whom money is transferred — bear the full risk of these grave security and fraud threats,” the class action states.
Zelle class action alleges money not reimbursed after fraud
The class action states Zelle is fully aware there is a major fraud problem on its platform and that the banks that own it almost never reimburse victims of Zelle fraud for their losses.
In Hope’s case, he was defrauded by a scammer out of $395 in 2020. Hope used Zelle to transfer the scammer the money. When he realized he had fallen victim to fraud, he immediately informed his bank, but his bank refused to reimburse him for the losses.
As a result, Hope is seeking damages, restitution and an injunction to prevent Zelle and member banks from continuing to engage in its allegedly illegal practices.
He looks to represent anyone who signed up for Zelle and incurred unreimbursed losses due to fraud plus a California subclass.
He seeks certification of the class action, damages, fees, costs and a jury trial.
This is the latest in a string of class action lawsuits recently filed against financial institutions, including TD Bank, that are accused of not protecting account holders who were financially injured after being defrauded while using the digital peer-to-peer payment platform Zelle.
Last month, a Seattle resident who filed a class action lawsuit alleging Wells Fargo and Zelle failed to protect customers from scammers who use Zelle’s mobile payment app dropped his claims.
Has your bank refused to reimburse you after you suffered financial losses due to fraud on Zelle? Let us know in the comments!
The plaintiff is represented by Edelsberg Law PA and Kalielgold PLLC.
The Zelle class action lawsuit is Dele Hope v. Early Warning Services LLC, Case No. 2:22-cv-04639, in the U.S. District Court for the Central District of California.
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991 thoughts onZelle class action alleges company erroneously advertises as safe, secure
Zelle is actually a dogshit service, no protection, no warnings, also banned me from using it transferring money to legit friends. They are doing it the opposite way, scammers get the money free whereas legit transactions are being prevented and causing huge inconveniences and restrictions.
I was scammed out of $825 on Zelle through my PNC banking app. Same as everyone above, my bank said they cannot refund me because I made the transaction even though I was scammed. Any other money transfer service would protect their customers’ payments. Zelle is an awful service and should be shut down.
Please add me as well. Scammed out of 750
I am a scam victim using Zelle through M&T Bank, involving Indeed employment posting which was fraud, received an offer letter of employment claiming to be representative of VOYA Financial, through (mostly) Skype and PayPal. Filed a claim through State Police (have claim#), IC3 (have file number), FINRA (have copy) and contacted Voya HR and Investigator. Also filed claim(s) with M&T Bank. Cost me $4,000+ and my employment of 18 years. Have moved on since but will never forget the scam and the companies that would not help me investigate this fraud, although provided immediate information to all. No money was ever returned to me by anyone, scammers got it all. Have ALL documents, ALL contacts and ALL electonic correspondence involving everyone for this case. Solid case.
I used my Chase Account to Zelle someone I borrowed $2,000 and it was a Fraudulent Situation but Zelle pushes it on Chase and Chase pushes it onto Zelle. Zelle supposedly took the $2,000 out of their account then closed it . If a Bank Offers Zelle They Should Back their Customers!!!
My name is Wilbert Cowan is was scammed I lost 2900 from a Zelle scam through TD Bank please add me to this lawsuit
Victim to a Zelle/Chase scam. Please add me to the list.
Lost 775 dollars,answered what we thought was chase number…..all info said it was….guy called next day,…….same response from chase bank
Wells Fargo bank didn’t help me get my scammed $2000 I paid for services I never got and they refuse to pay or pardon the money scam through Zelle’s . I lost $2000 plus fees not cool add me if there is a claim for these two companies.
I took Bank of America to small claims as someone hacked my account through Zelle and stole $750 Bank of America. The bank sent and attorney to small claims and they refused to pay. Zelle is insecure and banks know it but do not care.
When do we become responsible for our actions?