When a consumer suffers fraud through the most common forms of money transfers—via debit card, credit card, or check—banks have ways to recover money for the consumer. This class action concerns the Zelle system, and the fact that there is no way to recover money transferred that way in cases of fraud. The complaint bring suit against Bank of America, NA (BOA) for not warning consumers when they sign up for Zelle.
The class for this action is all persons with a BOA account who signed up for Zelle and incurred unreimbursed losses due to fraud. A California subclass has also been defined, for persons in the above class in California.
The plaintiff in this case, Natalie Tristan, fell victim to a fraud when she was looking for an apartment online. She believed she was applying for an apartment when she was told to transfer an application fee to a man; later she was told her application was approved and to transfer a security deposit and the first month’s rent and that the man would meet her with the keys.
All in all, she transferred $2,150 to him via Zelle, but he never appeared with the keys. Tristan eventually realized she had been defrauded, but BOA would not help her recover any of the money.
BOA advertises Zelle as a “fast, safe and easy way to send and receive money” and as “simple and secure…” But the complaint claims that this is not the case, and that BOA does not tell customers of the risks they may run when they sign up for the service.
The complaint reproduces a good deal of the bank’s Deposit Agreement & Disclosures that apply to fraud on their accounts, for example, “Tell us AT ONCE if you believe your card or your personal identification number (PIN) or other code has been lost or stolen. Also, tell us AT ONCE if you believe that an electronic fund transfer has been made without your permission using information from your check.” But these provisions do not apply to Zelle.
The complaint alleges that the Electronic Funds Transfer Act (EFTA) requires that banks reimburse customers for losses due to certain kinds of fraud. Also, the Consumer Financial Protection Bureau (CFPB) also claims consumers have fraud protection under Regulation E.
But the complaint alleges that, “as a matter of secret bank policy, fraud-induced Zelle transfers will almost never be reimbursed to accountholders.” This is true even when a fraudster removes the money from the account via Zelle, for example, through a stolen phone. Yet BOA, it says, never warns consumers signing up for the service that they have no recourse in cases of fraud.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
BOA No Refund of Fraudulent Zelle Transfers Amended Complaint
June 16, 2022
When a consumer suffers fraud through the most common forms of money transfers—via debit card, credit card, or check—banks have ways to recover money for the consumer. This class action concerns the Zelle system, and the fact that there is no way to recover money transferred that way in cases of fraud. The complaint bring suit against Bank of America, NA (BOA) for not warning consumers when they sign up for Zelle.
BOA No Refund of Fraudulent Zelle Transfers Amended ComplaintCase Event History
BOA No Refund of Fraudulent Zelle Transfers Amended Complaint
June 16, 2022
When a consumer suffers fraud through the most common forms of money transfers—via debit card, credit card, or check—banks have ways to recover money for the consumer. This class action concerns the Zelle system, and the fact that there is no way to recover money transferred that way in cases of fraud. The complaint bring suit against Bank of America, NA (BOA) for not warning consumers when they sign up for Zelle.
BOA No Refund of Fraudulent Zelle Transfers Amended Complaint