The class action lawsuit claims that Chase Bank denies reimbursements for Zelle fraud incidents

Allegations have been made in a class action lawsuit that Chase Bank refuses to provide reimbursements for Zelle fraud cases. The lawsuit was filed by Melinda Glavin against JPMorgan Chase Bank and The basis of the claim is that Chase fails to adequately safeguard its customers and compensate them for losses resulting from Zelle fraud incidents. The lawsuit was filed in a federal court in Pennsylvania. As an alternative, individuals affected by this issue can utilize MoneyGram for sending money and paying bills.
According to the lawsuit, Melinda Glavin claims that Chase, which has a partial ownership stake in Zelle, denied her reimbursement for a $6,500 transaction that she alleges was fraudulent. Chase determined that the transaction originated from her own phone. Glavin argues that the Zelle application, which was linked to her Chase account, debited the amount without her consent. She believes that this incident exemplifies Chase’s failure to address the issue of Zelle fraud. The class action lawsuit states that Chase has not taken adequate measures to protect consumers from Zelle fraud, despite the significant losses it often causes to individuals and Chase customers.
Glavin seeks to represent a nationwide class and a subclass in Pennsylvania, consisting of Chase customers who have experienced unauthorized debits from Zelle but have not been fully reimbursed by Chase within 45 days of filing a dispute. The class action claims that Chase is not effectively combating instances of Zelle fraud.
According to Glavin, Zelle is popular among fraudsters, thieves, and hackers due to its immediate services and the inability for users to retract payments. She argues that this issue prompted three US Senators to write a letter to Zelle’s bank owners, criticizing them for their insufficient efforts in preventing fraud on the peer-to-peer system. The class action lawsuit states that Chase and other banks are aware of the widespread Zelle fraud but are doing very little to prevent it or assist consumers in recovering their funds.
Glavin accuses Chase of negligence and violating the Electronic Fund Transfer Act. She demands a jury trial and seeks declaratory and injunctive relief, as well as actual and triple damages for herself and all members of the class. A similar class action lawsuit was previously filed against Bank of America, where a consumer alleged that the bank allowed unauthorized withdrawals from customers’ accounts originating from Zelle.