Consumer complaint received 2021-04-01
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Early Warning Services, LLC (FL)

Multiple large banks are auto-enrolling account holders into one exclusive cash app called Zelle and integrating Zelle into their banks services. The Zelle app is owned by 7 separatre federal financial institions. This appears to possibly be unfair business practice and also possibly a violation of privacy laws. I can explain by sharing my experience.

A number of months ago I went to transfer money to my sons account. The option was no longer available. I contacted XXXX and was informed that they were no longer allowing transfers like that and that money transfers had to be done through the Zelle app. I thought it was a bit odd that a Federal Bank was forcing me to use a particular app developed by a private company to transfer money. But, I went ahead and enrolled and then the " Transfer Money with Zelle '' appeared on my bank checking account page in my XXXX account. This money transfer app is integrated directly within my Federal bank. 

Since then we have had multiple problems trying to transfer money using Zelle. About a month ago I contact XXXX about the problem. XXXX informed me that it wasn't their problem and that I needed to contact Zelle. 

More recently, I am having trouble receiving money that was sent to me from someone who also has Zelle added into their XXXXXXXX XXXX account. I contacted Zelle about it and their automated message basically said " Not our problem. Call your bank. '' I called XXXX last night and spoke to a representative who explained to me that my phone number on Zelle had been disabled for some reason and that it is likely because my phone number is on somebody else 's bank account with another banking institution. 

No stop right there. How would that even be? Does that not sound a bit suspicious already? 

I told the representative that the person trying to send me the money did mention that at some point my mothers name popped up when they sought to send me the money. I said that I suppose my Mother could have my phone number on her account as a back up. The representative advised me to look into that. 

This morning I contacted my mother and she looked into it with her bank XXXX XXXXXXXX XXXX. It turned out that my phone number was in-deed on her account, as a back up number only. 

Furthermore, my mother never enrolled in Zelle and has no idea what Zelle is. She had my phone number removed from the XXXX  account. Now my phone number is re-enabled with XXXX and Zelle. 

Now, stop right there. If my mother never enrolled in Zelle, how does Zelle have access to my mother 's XXXX XXXX XXXXXXXX checking account and her name associated with that checking account ( since my mothers name popped up when the sender tried to send me the money )? Also, how does Zelle have access to the BACKUP phone number on my mothers XXXX  bank account? What other private bank information does Zelle have access to for people who enrolled but also for people who never enrolled, like my mother. 

After my mother removed my phone number from her account this morning, she received a text that read " Welcome to Zelle! '' She never enrolled in Zelle. But now XXXX auto enrolled her it appears. 

Why are the major banks forcing their account holders to use one particular cash transfer app ( Zelle ) made by a private company versus other similar cash transfer apps? Why does that one particular cash transfer app ( Zelle ) have access to account holder information for people who never enrolled in Zelle? 

Zelle is a private company. I looked them up. Interesting to find on XXXX that Zelle is a US based digital payments network owned by Early Warning Services. Early Warning Services is a private financial services company owned by 7 MAJOR FEDERAL BANKS, including XXXX XXXX XXXX. 

I find this activity to be very unusual and suspect that it is illegal. If it isn't, it should be. I believe this may include illegal business practices and consumer privacy rights violations.