TD Bank class action claims bank does not reimburse customers for Zelle fraud
TD Bank Zelle payment system class action lawsuit overview:
- Who: Gautham Yatham and Robert Walters filed a class action lawsuit against TD Bank, N.A.
- Why: Yatham and Walters claim TD Bank misrepresented to its customers that the Zelle payment system was safe to use.
- Where: The class action lawsuit was filed in New Jersey federal court.
TD Bank fails to disclose to its customers that the Zelle payment system it promotes has “huge” security risks and that individuals who are defrauded on the platform have “virtually no recourse” for getting their money back.
Plaintiffs Gautham Yatham and Robert Walter claim TD Bank misrepresents to its customers that Zelle, a person-to-person payment transfer service, is a “secure, free and convenient way to make money transfers.”
“The unique, misrepresented and undisclosed architecture of the Zelle payment system means … that virtually any money transferred for any reason via Zelle is gone forever without recourse, reimbursement or protection,” the TD Bank class action states.
TD Bank class action claims bank has secret policy not to reimburse for Zelle fraud
Yatham and Walter claim TD Bank keeps secret its policy that it “does not and will not reimburse its accountholders for losses via Zelle due to fraud,” including in instances when the fraud is reported in a timely fashion.
Further, Yatham and Walter argue TD Bank was contractually obligated to be upfront with its customers about the dangers of using Zelle.
“TD Bank was required not to misrepresent the unique and dangerous features of the Zelle service in its marketing about it and in contractual representations. But it failed to do so,” the TD Bank class action states.
Yatham and Walter claim TD Bank is guilty of breach of contract and breach of the covenant of good faith and fair dealing and in violation of the Florida Deceptive and Unfair Trade Practices Act and the New Jersey Consumer Fraud Act.
Plaintiffs demand a jury trial and request declaratory and injunctive relief along with punitive, exemplary and actual and/or compensatory damages for themselves and all class members.
Yatham and Walter want to represent a nationwide class and New Jersey and Florida subclasses of TD Bank account holders who signed up for Zelle and “incurred unreimbursed losses due to fraud.”
Instances of unreimbursed Zelle fraud have led to class action lawsuits being filed against a number of other financial institutions, including Bank of America, Wells Fargo, Capital One and Navy Federal Credit Union.
Have you been a victim of fraud on Zelle? Let us know in the comments!
The plaintiffs are represented by Rachel Edelsberg, Scott Edelsberg and Christopher Gold of Edelsberg Law, PA and Andrew J. Shamis of Shamis & Gentile, P.A.
The TD Bank Zelle Payment System Class Action Lawsuit is Yatham, et al. v. TD Bank, N.A., Case No. 2:22-cv-04161, in the U.S. District Court for the District of New Jersey.
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