Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
991 thoughts onZelle class action alleges company erroneously advertises as safe, secure
I was scammed in August 2022 using zelle through BOA. I immediately submitted a dispute and was told it would take 60 days to retrieve the funds. Today I received a letter stating that my request was denied and I’m sol in getting any of my funds returned. I am very interested in jumping in on any class action lawsuit against this rotten company called Zelle. I live in Georgia, but whatever state I can file, I am willing.
I was scammed out at $800 for an alleged cat. I thought that using Zelle was safe and then it was insured by bank insurance laws and Zelle advertised itself is safe, but I was scammed and when I called the USAA bank immediately to stop the charges, they told me they would give me the money back, but USAA never put the money back in my account in fact, they told me at 3 to 4 times they would put the money back in my account but by the fifth time they decided to blame it on Zelle even though it literally is in my account it’s not a separate app they literally are in my bank account. Can someone please help me take a class action against USAA to get Zelle out of our bank accounts and give us our money back m. I also was scammed out of money recently again on sell $1000 to a Sheila Brown who is blocked by cash app as being a suspicious person but not by Zelle which tells you that zelle doesn’t know does not protect, nor does my bank protect me against people the cash app Do.
I was scammed out of 400.00 from zelle and was told by chase Bank and was told they would refund money and zelle nor my bank issues a refund. I was told not to send money to people because zelle and my bank don’t cover fraud for them. I am so pissed off. Please add me to the law suit. The banks and zelle need to rectify the issue and do their part or stop saying it’s the best way to send money.
My son and I were scammed on a house rental and we were told by VyStar Credit Union that transferring money with ZELLE was recommended bc going thru the credit union using Zelle if anything happened they would REFUND our money. We LOST over $3.500.00 right after being throw to the streets from a failed 10 year relationship. Bank would not refund any money even with a police report and the police also thought the bank would refund our money since we used my sons account at VyStar CRedit Union Due to being scanned and no help from bank (called and tried talking to anyone who would listen at bank), we lost everything including we are still homeless to this day from January 2022. Deposits and first month & last month rent is a lot of money also electricity and more deposit. This destroyed us, and it’s DISAPPOINTING that a CREDIT UNION won’t Refund our money when they were there one who said “HOW SAFE ZELLE was” more lies to destroy people. I would like to join any LAWSUITS against ZELLE and/or Vystar Credit Union.
I am also a victim of Zelle scam. Someone posing as my bank said there were fraudulent charges being made to my accounts through Zelle. Long story short hackers managed to steal TEN THOUSAND DOLLARS from me. Zelle says they are “looking into it” but after reading every other victims claims I am not feeling very certain I will get my money back. I am so upset.
I was scammed and immediately reported it to Wells Fargo but was told there was no way to recover the money.
I was scammed for $4000 through Zelle buy someone pretending to buy a bed from me on Craigslist. I received a forged check for $4500 that was to purchase the bed and send money to a “mover” via Zelle. Sent $1500, check bounced and left my account negative. USE Credit Union refused to reimburse the loss then restricted my account after I paid it off.
I got scammed using Zelle through an app on Chase. Chase denied my claim eventhough I reported it within 24 hours.
I was scammed $1050 , scammer used zelle through Bank of America to transfer the funds , bank did not approve my claim and will not refund me .
I was scammed out f 1500 never got it back