The Zelle money transfer service is an excellent tool for quick, electronic payments. However, it comes with a potential drawback that most of the participating banks would rather not tell you about. A rising class action across the country claims that banks have failed to warn consumers that using Zelle comes with an “extreme and undisclosed risk of expensive bank fees.” Nobody talks about the Zelle overdraft fee risk, which has left many users paying exorbitantly for using the service.
Why Zelle carries a heavy overdraft fee risk
Zelle is promoted as a service that is 100% free, as well as easy and convenient. However, none of the banks who support the service make any mention of the fact that users can accrue overdrafts and insufficient fund fees (NSF) that can generate devastating expenses.
It appears that these risks are known to the banks, but they have not mentioned them in any of the promotional material they have created to sell the benefits of Zelle. As a result, many users have been shocked to discover that unreasonable and totally unexpected fees have been debited from their accounts.
How does this happen?
Banks do not inform consumers that Zelle has a credit feature that allows users to perform a transfer, even if there are not enough funds in the account. The bank in question thus essentially loans the user the money to complete that transaction – and then charges them for it. These unauthorized overdraft facilities come at an inordinately high cost. The ethical thing for a bank to do in these instances is simply decline the transaction if there are not enough funds. They may then have the right to charge NSF fees, provided the customer has given prior consent for them to do so, and the fees are reasonable.
These Zelle cases are very similar to other overdraft and NSF lawsuits around the country. Some banks have tended to use instances of insufficient funds to generate income by authorizing transactions and then charging the resulting fees. There are two problems with this approach: firstly, this often happens to clients who have not signed up for overdraft facilities, and should definitely not have to pay for them; secondly, the fees charged are frequently exorbitant and unreasonable.
Under these circumstances, Zelle users certainly have the right to pursue compensation.
About Shamis & Gentile
Shamis & Gentile, P.A. provides outstanding legal services in Florida and New York. We distinguish ourselves because of our experience and resources, which we combine to handle any kind of case involving personal injury, personal injury protection, class actions/mass tort, and contract disputes. When you bring your case to Shamis & Gentile, you will always work with a seasoned attorney who has an excellent track record. We are progressive and trusted within the legal community, and we are often called upon to settle cases that other law firms may not be able to handle on their own. We have successfully prepared and filed numerous successful class actions and mass arbitrations against a wide variety of companies. We will be happy to help you with your Zelle overdraft fee lawsuit and get you the compensation you deserve. Call us today to book a consultation with an overdraft lawyer.
