Law Firm Investigating New Class Action Against Zelle

zelle fraud lawsuit

Law Firm Investigating New Class Action Against Zelle

A San Francisco law firm says it is investigating the fraud reimbursement practices of several major U.S. banks that use the Zelle peer-to-peer payment system. The banks named by the law firm, Schubert Jonckheer & Kolbe LLP, include Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank, and Wells Fargo.

Despite Federal laws requiring the reimbursement of unauthorized electronic fund transfers, several major U.S. banks have refused to cover some customers’ fraud claims related to scams taking place on the Zelle payment system, which is owned and operated by the consortium of banks listed above. These practices have led consumers to file multiple class action lawsuits in several U.S. jurisdictions, including Federal courts in California, Washington, and Florida. One industry analyst recently told The New York Times that “organized crime is rampant” and that scams and fraud on peer-to-peer payment systems, including Zelle, are “common and everywhere.”

One lawsuit that was withdrawn last week came out of Washington. It had claimed that the plaintiff, Seattle resident Luke Hartsock, was robbed of $7,500 through a scam carried out over Zelle. Wells Fargo did not refund the money, the suit said, despite a legal obligation to do so. In April, U.S. Sens. Bob Menendez and Elizabeth Warren wrote to Early Warning Services to ask about the rise of scams on Zelle and the company’s alleged failure to address the issue.

If you have been a victim of fraud on the Zelle payment system and your bank has refused to reimburse you, Schubert Jonckheer & Kolbe LLP says you can complete the form here for free legal consultation.

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