VIENNA, N.J.–A federal judge in New Jersey has dismissed a proposed class action lawsuit against Navy Federal Credit Union related to losses on the Zelle digital payments app.
The judge ruled the plaintiff did not show Navy Federal had an “obligation to investigate alleged fraudulent transactions or to reimburse account-holders for such losses.
The lawsuit filed against Navy FCU related to fraud on the Zelle app is one of several proposed class actions against financial institutions related to fraud on Zelle.
As CUToday.info reported earlier, Jacqueline Wilkins filed a class action lawsuit against Navy Federal claiming it did not properly inform account-holders that they will not be reimbursed for financial losses due to Zelle fraud.
“(Navy Federal) misrepresents and omits a key fact about the service that is unknown to accountholders: that there is virtually no recourse for consumers to recoup losses due to fraud,” the suit against Navy Federal class action alleged.
‘No Recourse’ Alleged
In her filing, “Wilkins had claimed Navy Federal “prominently touts” that Zelle is a ‘secure, free and convenient way to make money transfers.’ Despite these representations, Wilkins argued there is no recourse for individuals who fall victim to fraud on Zelle, including ways to recoup financial losses on account of it.
In response, Navy FCU filed a motion in June in which it argued Wilkins had failed to lay out a claim that the credit union was obligated to investigate fraudulent transactions on Zelle and reimburse account holders, according to TopClassActions.com.
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