Bank of America (BofA) allows customers to withdraw money from their accounts and pay other parties via a service called Zelle. Unfortunately, according to the complaint for this California class action, it also seems to allow unauthorized parties to withdraw money from customer accounts and commit fraud. This class action brings suit against Bank of America Corporation and Early Warning Services, LLC, which does business as ZellePay.com, alleging that in facilitating these unauthorized withdrawals from Californians’ accounts, they have participated in fraud.
The class for this action is all California residents who had unauthorized Zelle withdrawals from their Bank of America accounts at any time between February 24, 2019 and the trial of this case.
BofA is the second-largest bank in the US and one of the largest banks in the world. It permits customers to use the Zelle application to transfer money from their own BofA accounts to the accounts of other people, even if they are at different banks, the complaint alleges.
The complaint quotes Zelle’s website as saying, “Safely send money to friends and family, no matter where they bank.” When a transaction is processed, the complaint alleges, the money is immediately removed from the sender’s bank account and transferred to the other account.
Unfortunately, the complaint alleges, sometimes these withdrawals or transfers are not made by the owners of the sending account, yet BofA and Zelle still permit the transactions to go through.
The plaintiff in this case, Cozette Willner, alleges that on January 18, 2023, BofA and Zelle permitted unauthorized withdrawals from her BofA account via Zelle which she had not authorized, in the amounts of $5, $75, $100, $125, $185, and $192. Each contained the description “Zelle Transfer Conf#,” the complaint claims, which after which came “a unique code.”
The complaint alleges, “Plaintiff Willner did not initiate or authorize any of these transactions. Nevertheless, [BofA and Zelle] caused and processed these unauthorized withdrawals from Plaintiff Willner’s bank account amounting to $682.00.”
The complaint alleges that Willner “is informed an[d] believes that the unauthorized withdrawals were caused by Defendants’ internal system.”
The companies have made “misrepresentations and omissions” about their Zelle product and services, the complaint alleges, violating California’s Consumer Legal Remedies Act with “unfair, fraudulent, deceptive, and unconscionable conduct” which “constitutes wire fraud and bank fraud.” Other counts listed in the complaint include violation of the state’s Unfair Competition Act and engaging in false and misleading advertising. The complaint asks for restitution and general, treble, special, and punitive damages, among other things.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Bank of America, Zelle Processing of Fraudulent Transactions Complaint
February 24, 2023
Bank of America (BofA) allows customers to withdraw money from their accounts and pay other parties via a service called Zelle. Unfortunately, according to the complaint for this California class action, it also seems to allow unauthorized parties to withdraw money from customer accounts and commit fraud. This class action brings suit against Bank of America Corporation and Early Warning Services, LLC, which does business as ZellePay.com, alleging that in facilitating these unauthorized withdrawals from Californians’ accounts, they have participated in fraud.
Bank of America, Zelle Processing of Fraudulent Transactions ComplaintCase Event History
Bank of America, Zelle Processing of Fraudulent Transactions Complaint
February 24, 2023
Bank of America (BofA) allows customers to withdraw money from their accounts and pay other parties via a service called Zelle. Unfortunately, according to the complaint for this California class action, it also seems to allow unauthorized parties to withdraw money from customer accounts and commit fraud. This class action brings suit against Bank of America Corporation and Early Warning Services, LLC, which does business as ZellePay.com, alleging that in facilitating these unauthorized withdrawals from Californians’ accounts, they have participated in fraud.
Bank of America, Zelle Processing of Fraudulent Transactions Complaint