VIENNA, Va.–A member of Navy FCU who is suing the credit union and seeking class action status alleging fraud related to its Zelle offering has responded to the credit union’s dismissal motion.
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 Navy Federal class action states, according to TopClassActions.com. “Wilkins claims Navy Federal ‘prominently touts’ that Zelle is a ‘secure, free and convenient way to make money transfers.’ Despite these representations, Wilkins argues there is no recourse for individuals who fall victim to fraud on Zelle, including ways to recoup financial losses on account of it.
TopClassActions.com further cited the plaintiff as alleging Navy Federal also “misrepresents and omits the truth” about its “secret policy” not to reimburse its account holders for losses caused by fraud on Zelle even in the event that they are reported in a timely fashion.
Navy Files Motion
In response, Navy FCU filed a motion in June which it argued that she 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.
Now, Wilkins has responded to the memo by calling on a New York federal judge to allow the class action to proceed, arguing she has plausibly alleged her claims, including those that the credit union misled customers by saying Zelle was “safe and secure” to use with its accounts, TopClassActions.com stated.
“Instead, Zelle has never been safe or secure since money transfers made through the app are immediate and never retrievable, Wilkins says,” according to the analysis.
What’s Alleged
Wilkins is claiming Navy Federal is guilty of breach of contract, including breach of the covenant of good faith and fair dealing, and in violation of the New Jersey Consumer Fraud Act.
She is seeking to represent a nationwide class and New Jersey subclass of individuals with a Navy Federal account who signed up for service with Zelle and were not reimbursed for losses caused by fraud.