- A Navy Federal Credit Union customer asked a New York federal judge to allow a class action lawsuit alleging that the bank failed to properly notify its account holders that they would not be reimbursed for financial losses caused by cell fraud .
- On Aug. 26, plaintiff Jacqueline Wilkins filed a memo challenging the bank’s June filing for termination, arguing that she had failed to make a claim that the credit union was required to investigate fraudulent transactions on cell and to compensate account holders.
- In her memo, Wilkins says she has made her claims plausible, including that the credit union misled customers by sayingzelle is “safe and secure” for use with their accounts.
- Instead, Zelle was never secure because money transfers made through the app are instant and never retrievable, says Wilkins.
Navy Federal cell fraud class-action lawsuit overview:
- Who: Jacqueline Wilkins filed a class action lawsuit against Navy Federal Credit Union.
- Why: Wilkins alleges that the Navy Federal Credit Union did not properly notify account holders that they would not be reimbursed for financial losses due to cell fraud.
- Where: The class action has been filed in federal court in New Jersey.
(May 20, 2022)
Navy Federal Credit Union fails to properly notify its account holders that they will not be reimbursed for financial losses caused by cell fraud, a new class-action lawsuit alleges.
Plaintiff Jacqueline Wilkins alleges that Navy Federal misrepresented the security of using cell for money transfers.
“(Navy Federal) misrepresents and omits an important fact about the service unknown to account holders: that there is virtually no legal remedy for consumers to recover losses due to fraud,” the Navy Federal class action lawsuit says .
Wilkins claims Navy Federal “prominently advertises” that Zelle is a “safe, free, and convenient way to send money.” Despite these allegations, Wilkins argues that there is no remedy for individuals who are victims of cell fraud, including ways to recover financial losses as a result.
Navy Federal class action lawsuit alleges the credit union has a “secret policy” not to make repayments
Navy Federal “also misrepresents the truth and omits the truth” about its “secret policy” of not reimbursing its account holders for losses caused by cell fraud, even if reported in a timely manner, the Navy Federal alleges- class action.
“NFCU was committed not to misrepresent the unique and dangerous characteristics of the cell service in its marketing about it and in contractual representations. But he failed,” the Navy Federal class action lawsuit states.
Wilkins alleges the alleged misrepresentations by Navy Federal account holders like herself to sign up for cell service “without the benefit of accurate information about that service.”
“Such users would never have subscribed to Zelle had they known the extreme risks of subscribing and using the service,” states the Navy Federal class action lawsuit.
Wilkins alleges that Navy Federal was guilty of breach of contract, including violating the good faith and fair trade agreement and violating the New Jersey Consumer Fraud Act.
She wants to represent a statewide class and a New Jersey subclass of individuals with Navy Federal accounts who signed up for cell service and have not been reimbursed for losses caused by fraud. She is also requesting a jury trial and seeking a declaratory judgment along with punitive, exemplary, actual and/or compensatory damages for herself and all group members.
Sens. Elizabeth Warren, D-Mass., and Robert Menendez, DN.J., wrote a letter to the owner of cell last month to warn about the “widespread” scam on the platform.
Have you not been reimbursed after financial losses due to cell fraud? Let us know in the comments!
Plaintiff is represented by Rachel Edelsberg of Dapeer Law, PA; Scott Edelsberg and Christopher Gold of Edelsberg Law, PA; and Andrew J. Shamis of Shamis & Gentile, PA
That Navy Federal cell fraud class action is Wilkins v. Navy Federal Credit UnionCase No. 2:22-cv-02916, in the United States District Court for the District of New Jersey.
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