Wells Fargo is currently confronting a fresh class-action lawsuit that accuses the bank of violating laws by compelling customers to accept liability for unauthorized transfers.

Jennifer Rice and Erik Westervelt filed the lawsuit in a Pennsylvania federal court, alleging Wells Fargo’s systematic breach of the Electronic Funds Transfer Act, wherein the bank allegedly fails to reimburse victims for incurred losses.

The incident began in December 2023 when the plaintiffs received a purported call from a Wells Fargo representative notifying them of a fraudulent wire transfer amounting to $24,557.89 from their account. The caller claimed they could halt the transfer if Westervelt confirmed a six-digit code sent via text message. Upon confirmation, the $24,557.89 was wired from their joint account to an unidentified user at Discover Bank.

Upon discovering the deception, Westervelt promptly reported the incident to their local Wells Fargo branch. The bank’s fraud department confirmed the transfer and initiated an investigation. However, after seven days, Wells Fargo informed Westervelt and Rice that they would not receive reimbursement, asserting that they had authorized the transfer themselves—an assertion the plaintiffs vehemently deny. The bank’s position vacillated between assurances of reimbursement and subsequent reversals.

Citing the Electronic Funds Transfer Act, which stipulates that consumers are not liable for unauthorized electronic fund transfers made using accepted cards unless the institution provides means to identify the user, the plaintiffs seek statutory damages of $1,000 per class member, along with legal fees, costs, and a trial by jury.

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