Angela’s Bank Refused to Honor its Reimbursement Guarantee on Unauthorized Transactions
Background
On April 13, 2020, a Zelle transfer of $2,000 from Angela’s* bank account was made to an individual unknown to her. This was followed by a second Zelle transfer out of the same account only moments later for $1,500 to a different unknown individual. Angela contacted her bank immediately after the transfer due to receiving a text notification of the transfer with a number to call if the transaction was not authorized.
Despite immediately calling the number provided, several hours passed before Angela was able to reach a representative from the bank. The bank opened up an investigation into the two transfers and ultimately refused to honor its guarantee that customers would be reimbursed in the event of an unauthorized transaction.
Angela subsequently contacted the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the Better Business Bureau and requested that the bank re-examine the claims. The bank conducted an additional investigation again denying the claims.
Legal Assistance
Angela contacted Legal Aid Service of Broward County for assistance. Legal Aid Service of Broward County subsequently sent a letter citing language from the bank’s website guaranteeing “zero-liability for unauthorized charges” and requesting an explanation as to why Angela’s claim was precluded from the zero-liability guarantee. The bank failed to respond to the letter.
Why It Matters
Legal Aid Service of Broward County proceeded to place multiple calls to the legal department of the bank continuously inquiring into why the claims did not qualify for the guarantee. The call also reiterated that Angela was willing to cooperate fully in any further investigation. After a few weeks, the bank decided to finally honor its guarantee that customers would be reimbursed in the event of an unauthorized transaction and reimbursed Angela for 100% of her loss.
*Names and images have been changed to protect the privacy of our clients
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