Consumer complaint received 2025-03-07 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Early Warning Services, LLC
State: NY

Complaint narrative:
I am submitting a formal complaint regarding fraudulent transactions that occurred through Zelle, resulting in severe financial harm. Despite my efforts to address this matter, Zelle has failed to take appropriate action, leaving me without recourse for the damages incurred. 


An individual posing as a mechanic contacted me, claiming they could repair my vehicle. After I towed my car to their location, they initially quoted me {$1500.00} for the repairs. However, after each Zelle payment I sent, they continued to fabricate new issues, demanding additional funds. When I attempted to verify the legitimacy of their shop, I discovered that the listed location was nothing more than a wooded area. When confronted, they provided false excuses, including claims that they had relocated due to a police raid. 

Over the course of this scam, I made multiple payments through Zelle, totaling {$3200.00}. After months of delays, they finally returned my car, which was completely inoperable and in worse condition than before. I later discovered that this individual had scammed multiple other people in the same manner, with deleted online reviews proving a pattern of fraud. 


Zelle actively promotes itself as a secure and reliable payment method. However, in this case, Zelle enabled fraudulent transactions, despite clear warning signs. I contacted Zelle multiple times to dispute the payments and provided substantial documentation proving the fraud. Instead of assisting, Zelle allowed the scammer to keep the stolen funds, leaving me without any resolution. 

The argument that Zelle " does not handle money '' does not absolve it of responsibility. Zelle serves as a financial intermediary between banks and markets itself as a safe way to transfer funds. Consumers rely on these assurances, and Zelle has a duty to protect users from fraudulent activity. 


XXXX failure to act in this case raises serious compliance concerns under consumer protection laws, including : The Electronic Fund Transfer Act ( XXXX ) and Regulation XXXX, which require financial service providers to investigate and resolve unauthorized or fraudulent transactions. 
The Consumer Financial Protection Bureau ( CFPB ) and other regulatory agencies, which have publicly warned financial institutions about their responsibility to address fraud in peer-to-peer payment networks. 
Deceptive marketing and unfair business practices, as Zelle represents itself as a safe platform while failing to provide fraud protection for users. 
XXXX and XXXX Consequences As a result of this fraud and XXXX inaction : I was left without transportation and forced to junk my car. 
I lost my job due to my inability to commute. 
My bank account went into overdraft, severely damaging my credit. 
I was unable to secure a {$25000.00} loan to purchase a new vehicle, further compounding my financial hardship. 


I look forward to your prompt response and resolution of this matter. Please provide a written response within XXXX business days. If I do not receive a resolution by then, I will escalate my complaint to the following agencies and consumer advocacy organizations : Better Business Bureau ( BBB ) To document XXXX failure to address fraud complaints and warn other consumers. 
Federal Trade Commission ( FTC ) To report deceptive business practices and potential violations of fair consumer practices. 
XXXXXXXX XXXX XXXXXXXX XXXX To initiate a formal complaint at the state level regarding XXXX role in enabling fraud. 
XXXX XXXX XXXX XXXX XXXX XXXX To raise awareness of XXXX refusal to protect consumers from fraud. 

Failure to respond within this timeframe will leave me with no choice but to take all necessary steps to ensure accountability. I expect immediate action to rectify this situation. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation