Wells Fargo faces a fresh lawsuit alleging violation of the law by coercing customers into assuming liability for unauthorized transfers. Jennifer Rice and Erik Westervelt filed the lawsuit in a Pennsylvania federal court, asserting that Wells Fargo systematically breaches the Electronic Funds Transfer Act by failing to reimburse victims for their financial losses.

According to the complaint, in December 2023, Westervelt and Rice received a phone call purporting to be from Wells Fargo, informing them of a fraudulent wire transfer of $24,557.89 from their account. The caller claimed they could stop the transfer if Westervelt verified a six-digit code sent via text message. Upon confirming the code, the funds were transferred to an undisclosed recipient at Discover Bank, unbeknownst to Westervelt that he was dealing with a scammer.

Upon realizing the deception, Westervelt promptly reported the incident to his local Wells Fargo branch. Despite the bank’s fraud department confirming the unauthorized transfer, Wells Fargo later informed Westervelt and Rice after seven days that they would not reimburse the funds because the couple had supposedly “authorized” the transaction. The plaintiffs contend they did not authorize the transfer and accuse Wells Fargo of vacillating on promises to reimburse them.

Citing the Electronic Funds Transfer Act, the lawsuit emphasizes that consumers are not liable for unauthorized electronic fund transfers unless they involve the use of an accepted card and the issuing institution provides a means to identify the cardholder. Westervelt and Rice seek statutory damages of $1,000 per class member, along with legal fees, costs, and a jury trial.

Source: The Daily Hodl