Wells Fargo is facing a new class action lawsuit that alleges it violated the law by holding customers liable for fraudulent transfers.
of suitThe lawsuit, filed in Pennsylvania federal court by Jennifer Rice and Eric Westervelt, alleges that Wells Fargo routinely violates the Electronic Funds Transfer Act by failing to compensate victims for their losses.
In December 2023, the couple allegedly received a call from someone claiming to be from Wells Fargo informing them that a fraudulent wire transfer of $24,557.89 had been detected in his account.
The caller said they could stop the transfer if they confirmed a six-digit code sent via text message.
When Westervelt checked the codes, $24,557.89 had disappeared from the joint account via wire transfer to an unidentified user at Discover Bank.
When Westervelt realized he was talking to a scammer, he immediately went to his local Wells Fargo branch and reported what had happened. The bank’s fraud department confirmed that money had been taken from his account and said they would investigate the incident.
But seven days later, Wells Fargo called Westervelt and Rice to tell them they wouldn’t get a refund because they had “approved” the transfer. They deny doing anything like that, and claim Wells Fargo repeatedly promised to refund them then backtracked.
Plaintiffs cited the Electronic Funds Transfer Act:
“Consumers are not liable for fraudulent electronic transfers unless the transfer is made using a card authorized on the account and the issuing institution has provided a means of identifying the person using the authorized card.”
Westervelt & Rice is seeking statutory damages of $1,000 per plaintiff, plus fees, costs and a jury trial.
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